Summit & CLA Experts Write Fair Value Accounting Paper

Summit Principal Anthony Curcio and Roger Von Elm, Principal at CliftonLarsonAllen, today published a white paper on fair value accounting in Federal Credit budgeting. Fair value accounting is a topic of interest for many practitioners in Federal Credit, largely due to the House and Senate Budget Committees having recently introduced bills that could overhaul the way Federal lending programs are scored, which could impact the budget cost and operations of these programs.

From the executive summary:

For many years, the budgeting of Federal Credit programs has been governed by the Federal Credit Reform Act of 1990 (FCRA), whereas most private sector financial institutions have used fair value to report the value of their assets and liabilities. Recent initiatives may require the budgetary costs of Federal Credit programs to reflect the fair value of the related loans or loan guarantees. These initiatives raise a number of questions regarding the implementation of fair value for estimating the cost of Federal programs. In this paper, we explore the implications of applying fair value accounting for the budgeting of Federal loan programs.Fair Value in Federal Credit White Paper

A brief version of Mr. Curcio and Mr. Von Elm's work was included in the most recent newsletter of the Association of Government Accountants (AGA). The white paper, along with other documents, websites, and resources relevant to Federal Credit, is available in Summit's Federal Credit Knowledge Base.