GASB 34, Asset Management, and Reporting -- Introduction

Transcription

1 GASB 34, Asset Management, and Reporting -- Introduction Jeff Hughes, Associate Director Environmental Finance Center Friday Center, Chapel Hill February 19, 2002

2 Environmental Finance Center How do you pay for it? Network of 9 EPA supported centers Responsible for EPA region IV Bridge between university environmental finance and policy specialists and practitioners Joint program of School of Government and Kenan Institute for Private Enterprise

3 Look who is talking about GASB 34 Technical service providers Lenders Operators Financial managers Financial oversight bodies Advocacy groups Citizens??

4 GASB 34: reactions Compliance with GASB 34 will be the single greatest element affecting daily lives for all Americans today. Source: web site advertisement for software provider

5 GASB 34: reactions GASB 34 is the "most significant pronouncement in the history of financial reporting requirements for local governments in the United States." GASB 34 will have a major impact on the way that Municipalities manage all infrastructure assets. Source: web site for consulting services

6 GASB 34: reactions Statement 34 may help create the platform for a new form of accounting that makes the current and projected budget impact decisions of local elected official regarding energy efficiency, environmental management, green infrastructure, urban sprawl mitigation, and aspects of sustainable development more transparent and comparable. Source: excerpt from presentation at Great Parks, Great Cities conference

7 GASB 34: APWA The inclusion of depreciation charges for which there is no actual cash expenditure-as a government expense distorts financial statements and reduces their values as a management tool. Source: APWA Policy Statement adopted by APWA Board of Directors on 12/2/00

8 GASB 34: APWA The American Public Works Association endorses and supports the principles embodied in GASB 34 and urges local and state governments to adopt the modified approach to meeting GASB 34 requirements where feasible. Source: APWA Policy Statement adopted by APWA Board of Directors on 12/2/00

9 GASB 34 and reporting according to GASB Annual reports should allow users to assess a government s accountability by assisting them in determining compliance with finance-related laws, rules, and regulations. Source: GASB Concepts Statement No. 1

10 GASB 34 and reporting according to GASB This analysis [MD&A] should provide users with the information they need to help them assess whether the government s financial position has improved or deteriorated as a result of the year s operations. Source: GASB 34 Preface and Summary, GASB

11 GASB 34 and reporting according to GASB Evaluate whether the government's current-year revenues were sufficient to pay for current-year services See the cost of providing services to its citizenry Understand the extent the which the government has invested in capital assets Source: GASB 34 Preface and Summary, GASB

12 GASB 34: bringing attention to difficult issues Infrastructure capital costs Infrastructure asset maintenance Financial reporting Different perspectives about funding needs and priorities

13 Asset reporting: beyond GASB 34 Internal planning documents Annual budgets Customer newsletters Water rate studies Capital Investment Programs Loan/bond documentation Grant applications

14 Workshop objectives Clarify what GASB 34 does and does not mean for NC water/waste water service providers Presentation of different perspectives related to the implementation of GASB 34 in particular, and asset reporting in general

15 Workshop objectives Presentation of different asset management and reporting tools and examples that support GASB 34 and other asset reporting goals Development of asset management and reporting strategies