[Revised Title 2 of GAO's Policy and Procedures Manual for Guidance of Federal Agencies]

GAO discussed its issuance of the revised title 2 of the GAO Policy and Procedures Manual for Guidance of Federal Agencies, entitled "Accounting Principles and Standards for Federal Agencies." The revised title calls for agency accounting systems to produce financial statements on the totality of the agency's operations and requires that these systems be an integral part of the agency's total financial management system. GAO believes that the additional costs to prepare the required financial statements will be minimal, because agencies have been preparing similar annual financial statements for years. These statements should prove very helpful in providing information necessary for greater control and oversight over agency activities. Appendix III of title 2, which is currently under development, will highlight additional requirements at the systems level concerning integration of all financial information needs. Finally, GAO believes that the goal of cooperation with the executive branch in the development of title 2 has been achieved.

The Policy and Procedures Manual for Guidance of Federal Agencies, February 1, 1991, is posted in full at http://www.gao.gov/products/148815. Title 2 (Accounting Principles and Standards) starts on page 64 of the PDF.