FINANCIAL MANAGEMENT AND ACCOUNTING OBJECTIVES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00191R000100070020-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 23, 2016
• Document Release Date: October 24, 2013
• Sequence Number: 20
• Publication Date: March 15, 1985
• Content Type: MEMO

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Declassified and Approved For Release 2013/10/24: CIA-RDP90-00191R000100070020-4
5
FINANCIAL
MANAGEMENT
AND
ACCOUNTING
OBJECTIVES
MARCH
1985
Executive Office of the President
Office of Management and Budget
Declassified and Approved For Release 2013/10/24: CIA-RDP90-00191R000100070020-4
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M-85-10
MEMORANDUM
FROM:
SUBJECT:
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C.
20503
MAR 1 5 1985
FOR THE HEADS OF DEPARTMENTS AND AGENCIES
DAVID A. STOCKMAN
DIRECTOR
Financial Management and Accounting Objectives
This is a follow-up to Circular A-127, "Financial Management
Systems." The Circular sets forth policies and procedures for
developing, operating, evaluating., and reporting on financial
management systems. It requires each agency to establish and
maintain a single, integrated financial management system that
meets a series of basic objectives.
The attached "Financial Management_and_AC:qPuhting_gbjectives",
iprovides additional details of the obiectives. to be achieT.Ted in
designing new systemsjahd in operating existingones.--it-ihdludes
sumriaiy 6f-th-e?appropriate budget and accounting principles and
standards that are to be incorporated into agency systems to meet
the requirements of Circular A-127. This summary also serves as
the evaluation base for the annual report on accounting systems
required by the Federal Managers Financial Integrity Act,
P.L. 97-255.
Evaluations of agency systems required by the Circular are to be
based on the policies and procedures contained in Circular A-127
and the detailed explanation of objectives contained in the
attached,document. Initial submission of the five-year plan
called for in the Circular is to be made with your agency's FY
1987 budget and management submission.
Attachment
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proposed prior to the beginning of the fourth quarter for
amounts that are determined not necessary for use or not
required to carry out the purposes of the appropriation or
other authority. The amount proposed for rescission shall be
made available for obligation if both Houses have not complete
affirmative action in the form of an enacted law within 45 days
of continuous session after the President's message is received
by the Congress.
o Transfer of Funds - When specifically authorized by law, all or
part of the budget authority in one account may be transferred
to another account. Expenditure transfers are made when the
transfer benefits the transferring account. They are treated
as payments and collections. Non-expediture transfers involve
direct movements of budget authority or unobligated balances.
They may be made either as appropriation adjustments (movements
between appropriations) or allocations (which allow one agency
to obligate or expend a. portion of another agency's accounts.)
o Obligations - Amounts of orders placed, contracts awarded,
services received, or similar actions taken during a given
period that will require payment during the same or a future
period shall be recorded as obligations and charged to the
appropriate accounts. Outlays for which obligations had not
previously been recorded shalr-also b,e_zreportelcl_os obligations
of the appcopriate accounts. 0-15-ri75.1iiions shall_be_suppoRT(T15:0
4gpriATETW-64-documenta-tkon-r-e-.-gritten-binditiFigreement, fl
croon agreement,--Order, grant award, etc., and retained .0 the
qgencY III such form as'=-Co facilitate audit and reConcirriTion.
The -recording of an obligation shall riot be delayed or/
?understated due to a delay in securing tre documentation. -Nor
si-laIleecording be delayed becauso_sufficient_funds are nog'
6vailableT-------------
Obligations shall be adjusted to reflect (1) differences
between obligations previously recorded and actual outlays that
liquidate those obligations, and (2) the periodic deobligation
of obligations previously recorded that are no longer viable
and will not require future payments. However, downward
adjustments in unexpired accounts relating to obligations
incurred in prior years shall not be netted, but rather
reported separately as a recovery of the prior years'
obligations. Downward adjustments in expired accounts shall be
netted and the results reported as obligations incurred.
o Outlays - Outlays are the measure of payments made through the
disbursement of cash, issuance of checks, electronic transfer
of funds, or other means, or by accrual of interest on the
national debt. Outlays are reported net of offsetting
collections. If the offsetting collection is available for
spending by the account, the collection is credited to the
account. Proprietary receipts and interagency transfers, not
TIT A
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