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SETTING A NEW STANDARD IN GOVERNMENT-WIDE ACCOUNTING

We are working with the Office of Management and Budget to develop and validate a standard accounting classification structure for all government agencies to aid in the collection, interpretation, and reporting of financial information at the agency, department, and executive branch levels.

We began by standardizing the disparate data elements in which the accounting systems are built to render comparable, consistent data. We identified the requirements to support common needs, obtained concurrence on definitions and format, aligned data elements from different sources, and encouraged central agencies to begin eliminating the disparities in their systems.The result was the Common Government-wide Accounting Classification (CGAC) structure, a mandatory preliminary step in the process of defining system replacement programs within the central agencies. Its use will be required for all executive branch agencies in conjunction with financial system replacement. The CGAC helps agencies standardize accounting classifications internally. Long term, it will aid in the standardization of financial management throughout the federal government, mitigate system implementation risks and costs, improve data consistency and accuracy, and establish a standard for exchanging information.