Identify and briefly explain the four sections of the performance and accountability report (PAR) that the Office of Management and Budget requires major federal departments and agencies to prepare.

Question

What will be an ideal response?

Answer 1

The four parts and an explanation of their content are:

1. The management's discussion and analysis - it serves as a brief overview of the entire PAR and clearly describes the department or agency's mission and organizational structure; its performance goals, objectives, and results; analysis of its financial statements; and analysis of information about internal controls and legal compliance.
2. The annual performance report (APR) (or performance section) - it provides information about the agency's performance and progress in achieving its performance goals.
3. Basic financial statements - these include a balance sheet, statement of net cost (essentially an operating statement format that places expenses over revenues-program costs minus earned revenues = net cost), statement of changes in net position (similar to changes in owners' equity in business accounting), statement of budgetary resources, statement of custodial activity, and statement of social insurance.
4. Other accompanying information - this includes information such as perspectives on the tax burden, size of the tax gap, challenges facing management, and revenue forgone.