What's at Stake?

1. What's at Stake? The U.S. Government’s Financial Statements and the Country's Fiscal Health

2. The role of CPAs Serve as trusted advisors to a variety of organizations Help businesses and individuals achieve strong financial standing Protect the public interest Explain complex financial issues

3. Today Overview of the federal budget Insights into the federal financial statements Nation’s deficit reality

4. Federal budget

5. Federal financial statements

6. 2012 financial statements

7. 2012 financial statements

8. U.S. financial statements differ from other organizations Most financial statements show obligations or liabilities on balance sheet U.S. government’s financial statements do not include Social Security and Medicare • Footnote disclosures • Not reflected as liabilities

9. Reality of future obligations These future obligations equal: Additional social insurance deficit $52 trillion Cumulative deficit 16 trillion Total deficit $68 trillion

10. Key data in publicly traded company’s financial statements

11. Accumulated deficit $16.1 $14.8 $13.5 $11.5 In trillions 2009 2010 2011 2012

12. What’s next

13. (Optional) (Add information about what you, your firm and/or your state society is doing in this area)

14. Thank you