11th Hour Service Managing Director, Debbi Thomas Provides OMB Circular A-136 Highlights
Falls Church, VA. – Friday, September 11th – 11th Hour Service
” It was incredibly important that The Office of Management and Budget (OMB) release the most recent update for OMB Circular No. A-136, Financial Reporting Requirements, with a focus on streamlining the overall circular. The significance of OMB streamlining Circular A-136 is to ensure a proper balance between the benefits derived from collecting data and the burden such reporting places on agency resources. ” States 11th Hour Service Managing Director, Debbi Thomas.
A Brief Overview:
On August 27th, OMB released the updates to OMB Circular No. A-136, Financial Reporting Requirements, which is effective upon issuance. This update streamlined current reporting requirements and reflected current Federal generally accepted accounting principles. One of the biggest changes will be required in FY 2021, the revised presentation of the Balance Sheet. Agencies may elect to adopt the new Balance Sheet presentation in FY 2020. Some of the major changes to the Balance Sheet include:
- Changing the governmental (i.e., non-Federal) activity to be labeled ‘With the public’ along with inserting lines within the total assets and total liabilities sections on the Balance Sheet that subtotal the activity related to ‘With the Public,’
- Added a line for ‘Liability for Fund Balance with Treasury’ under Intragovernmental Liabilities, and
- Added subtotal lines ‘Net position – Funds other than those from dedicated collections [Subcategory lines: 37.1 Unexpended Appropriations and 37.2 Cumulative Results of Operations]’ and “Total net position – Funds other than those from dedicated collections”
Another major update was the additional note disclosure for COVID-19 financial activity for any Agency using FY 2020 budgetary resources or receiving a significant amount of budgetary resources under any of the COVID-19 supplemental appropriations or other acts. Specifically, the COVID-19 note should disclose the (1) source and amount of budgetary resources used, (2) programs or activities funded, (3) obligations incurred, (4) remaining available funds, (6) impact on assets, liabilities, costs, revenues, net position, and other results, and (7) any other information determined useful to the reader. Furthermore, Agencies should also consider the implications on other related notes that were impacted by its COVID-19 financial activity.