Grant Programs: Accrual Estimates

Project Objective:

To address concerns with grant accounting, particularly cost/benefit considerations regarding the year-end grant accrual process.

Project History (Reverse Chronology)

June 23-24, 2010
Staff presented the AAPC’s proposed Technical Release, planned for issuance in August 2010, to the Board.

Issue Paper for June 2010

March 22, 2010
An Exposure Draft was issued for a proposed Technical Release, “Accrual Estimates for Grant Programs” with comments requested by April 22, 2010.

Exposure Draft: “Accrual Estimates for Grant Programs” (PDF)

January 20, 2010
The AAPC accepted the project for development as a proposed Technical Release.

December 16, 2009
A project package was sent to the FASAB’s Accounting and Auditing Policy Committee (AAPC) for consideration at the January 20, 2010 AAPC meeting.

AAPC Issue Paper – December 16, 2009 (PDF)

August 13, 2009

• A Task Force consisting of representatives from federal agencies and independent accounting and consulting firms assisted FASAB staff in identifying areas where guidance would be helpful.  Specifically, members indicated a need for guidance regarding:
• appropriate reliance on the best available data in light of the often limited access grantee data,
• situations where no historical data is available such as new or modified grant programs,
• assessment about materiality and whether it is appropriate to focus on the statement of net cost when making such assessments, and
• cost-effective means of validating previous estimates.

April 28-30, 2009

• A series of roundtables in April 2009 indicated that guidance for determining whether estimates of advances and payables for grant programs are reasonable would be helpful for agencies.  Specifically, agencies indicated a need for guidance supporting cost-effective development of reasonable estimates.