IN PARTNERSHIP WITH THE OFFICE OF MANAGEMENT AND BUDGET (OMB) AND THE GENERAL ACCOUNTING OFFICE (GAO), TREASURY PROVIDES THE LEADERSHIP ESSENTIAL TO PROMOTE SOUND FISCAL MANAGEMENT IN THE FEDERAL SECTOR. HOWEVER, EACH AND EVERY ACCOUNTING ENTITY IN THAT SECTOR ULTIMATELY HAS AS GREAT A STAKE AS TREASURY IN THE QUALITY OF GOVERNMENTWIDE ACCOUNTING AND REPORTING. THIS OVERVIEW AND EXPLANATION OF THE MECHANICS OF THE CENTRAL ACCOUNTING AND REPORTING SYSTEM AIMS TO (1) CREATE AN AWARENESS OF THE INTERRELATIONSHIPS THAT EXIST IN THE FEDERAL FINANCIAL COMMUNITY, (2) ENCOURAGE GREATER GOVERNMENTWIDE COOPERATION IN TREASURY'S OBJECTIVE OF PUBLISHING TIMELY AND ACCURATE FINANCIAL REPORTS, AND (3) REDUCE THE INCIDENCE OF REPORTING AND COMMUNICATIONS PROBLEMS WHICH HINDER THE ACCOMPLISHMENT OF THAT OBJECTIVE. MOST FREQUENTLY-ENCOUNTERED AGENCY REPORTING DISCREPANCIES ARE ADDRESSED, SUCH AS DELAYS IN REPORTING AND RECONCILIATION TO STATEMENTS, LACK OF COMMUNICATION BETWEEN OFFICES, AND LACK OF UNDERSTANDING OF THE IMPORTANCE AND RELATIONSHIP OF REPORTS TO BUDGETING AND AGENCY ACCOUNTABILITY. FINALLY, A BRIEF SUMMARY OF ONGOING TREASURY PROJECTS AFFECTING THE CENTRAL ACCOUNTING SYSTEM IS PRESENTED IN RECOGNITION OF TREASURY'S EXPANDING FISCAL, BUDGETARY, AND PROGRAM-RELATED RESPONSIBILITIES IN GOVERNMENTAL FINANCIAL MANAGEMENT. FOOTNOTES, A BIBLIOGRAPHY, AND APPENDIXES SHOWING FISCAL STATEMENTS, RECEIPTS, AND ORGANIZATIONAL CHARTS ARE INCLUDED. (MHP)