Accounting FAsb

Part 1: Federal Accounting Journal Entries

The following transactions were selected from a federal agency. All amounts are in millions of dollars.

Transactions:

1. Received a warrant from Treasury for its appropriation for the fiscal year, $300.

2. The OMB apportioned $80 to the agency.

3. The agency head allotted $79 to specific purposes.

4. Preliminary requests were made within the agency for the purchase of $8 in supplies.

5. Purchase orders were approved and placed for the $8 of supplies requested.

6. Equipment with an estimated cost of $17 was ordered.

7. The equipment was received along with an invoice for its $17 cost.

Requirement:

Prepare all journal entries (both budgetary and proprietary) that a federal agency should record for the above transactions. (20 pts.)

Part 2: Financial Statement Audit Priorities

In 2019, the Secretary of Defense issued priority areas for audit remediation. List these four priority areas and indicate which area that you feel has the greatest significance in the auditability for the Department of the Army. Briefly explain your reasoning. (10 pts.)

Part 3: Material Weaknesses

Choose one of the material weaknesses included in the FY 2019 annual financial report for the Army General Fund. In your own words, briefly discuss the material weakness that you choice and offer a specific course of action that would help to mitigate the issue. (15 pts.)