10/25/2016. Topics (cont.) Final GASB Statements. Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans
|
|
- Evelyn Bruce
- 5 years ago
- Views:
Transcription
1 2016 Annual Governmental GAAP Update Government Finance Officers Association November 3, 2016 & December 1, 2016 Program Overview 2 Topics I. Final GASB Statements GASB 78 Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans GASB 79 Certain External Investment Pools and Pool Participants GASB 80 Blending Requirements for Certain Component Units GASB 81 Irrevocable Split-Interest Agreements GASB 82 Pension Issues 3 1
2 Topics (cont.) II. GASB Exposure Drafts Fiduciary activities Asset retirement obligations Leases Certain debt extinguishment issues Omnibus III. GASB Implementation Guidance Update 2016 IV. Update on Reporting Model Review V. Reporting Deficiencies VI. GASB Technical Agenda 4 Final GASB Statements Part I 5 Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans GASB Statement No. 78 FYE 12/31/16 (early application encouraged) 6 2
3 Overview Challenge Employers in cost-sharing plans where neither the plan itself nor most of its participating employers are governmental entities Difficult or impossible to obtain information to comply with GASB 68 Resolution Remove from scope of GASB 68 Provide a different approach 7 Criteria to qualify Plan not a state or local pension plan Plan provides benefits to employees of nongovernmental employers No single government/governmental employers in the aggregate predominant 8 Financial reporting Use pre-gasb 68 guidance for cost-sharing plans Pension expense/expenditure = employer contributions associated with the period Even if billed in a subsequent period Employer liability limited to unpaid contributions Required supplementary information (RSI) Required contributions (ten most recent years) 9 3
4 Note disclosure Name of the pension plan Entity that administers the plan Identification as a cost-sharing plan with requisite privatesector characteristics Whether the pension plan issues a publicly available financial report and how to obtain it Brief description of benefit terms, including: Number of government employees covered Types of benefits provided Authority for establishing/amending benefits 10 Note disclosure (cont.) Contribution requirements Basis for determining employer contributions Authority for establishing and amending Required contribution rates Dollar amount of required employer contributions Expiration date of collective-bargaining agreement Minimum contributions required for future periods by collective-bargaining agreement(s), statutory obligations, or other contractual obligations Whether employer is subject to any provisions regarding withdrawal from the pension plan 11 Note disclosures (cont.) Information about employer payables Balances if not otherwise identifiable Significant terms Description of what gave rise to the payables (e.g., related to past service upon entrance into the arrangement) 12 4
5 Certain External Investment Pools and Pool Participants GASB Statement No. 79 FYE 6/30/16 (earlier application encouraged) Additional 6 months (certain credit risk requirements) 13 Background Money-market mutual funds Traditionally allowed to use amortized cost Fair value normally approximates amortized cost Traditional criteria = SEC 2a7 Challenge Continued use of SEC Rule 2a7 no longer practical 14 Resolution Set specific GASB criteria to replace SEC Rule 2a7 When a pool is allowed to report all of its investments at amortized cost When participants in a pool are allowed to report their participation in the pool using a net asset value (NAV) based on amortized cost Six criteria (see following slides) Significant noncompliance disqualifies for period Return to amortized cost = change in accounting principle 15 5
6 Six criteria for a pool to qualify 1. Stable net asset value (NAV) per share 2. Portfolio maturity Remaining maturity 397 days Weighted average maturity 60 days Takes into account maturity shortening features Weighted average life 120 days Ignores maturity shortening features 16 Criteria to qualify (cont.) 3. Portfolio quality Highest category of short-term credit rating 4. Portfolio diversification Single issuer 5% total assets 17 Criteria to qualify (cont.) 5. Portfolio liquidity Definitions Illiquid = beyond 7 business days Weekly liquid = within 5 business days Daily liquid = within 1 business day Requirements When acquiring illiquid security Liquid must remain 95% total assets When acquiring any security Daily liquid must remain 10% total assets Weekly liquid must remain 30% total assets 18 6
7 Criteria to qualify (cont.) 6. Monthly calculation of a fair value shadow price Deviation > 0.5% price/share = disqualification for use of amortized cost 19 Disclosure requirements pools and participants Any limitations or restrictions on participant withdrawals Notice periods Maximum transaction amounts Pool s authority to impose liquidity fees or redemption gates Redemption gate: limitation on redemptions for a short period of time Liquidity fees: A fee levied on investors that wish to redeem shares in times of stress 20 Blending Requirements for Certain Component Units GASB Statement No. 80 FYE 6/30/17 (earlier application encouraged) 21 7
8 Background Situation Legally separate entities that are component units Governing body comprises Representatives of the community Primary government as sole corporate member Typically have not qualified for blending Not the same board Services not (almost) exclusively provided to government Primary government not responsible for all debt 22 Challenge and solution Theory Blending should be used if a component unit functions essentially as part of the government Certainly the case if the government is the sole corporate member Solution Establish an additional criterion for blending Unit incorporated as not-for-profit corporation (but not included based on GASB 39), and Primary government is sole corporate member 23 Irrevocable Split-Interest Agreements GASB Statement No. 81 FYE 12/31/17 (earlier application encouraged) 24 8
9 Background Description of a split-interest arrangement Donor transfers resources to an intermediary to administer for a period of time (term) for the unconditional benefit of a government and some other beneficiary Intermediary Government Some other party Term based on Specific number of years (period-certain term) Lifetime (life-contingent term) 25 Background (cont.) Two types of split interest Benefit over the term of the agreement Lead interest Benefit upon termination of the agreement Remainder interest 26 Background (cont.) Example Alumnus donates retirement portfolio to university in return for a lifetime annuity Alumnus = lead interest Annuity during lifetime University = residual interest Ownership of portfolio Calculation Total resources Less Lead interest (at settlement amount) Remainder interest 27 9
10 Four possibilities LEAD INTEREST BENEFICIARY REMAINDER INTEREST BENEFICIARY GOVERNMENT INTERMEDIARY A B SOME OTHER INTERMEDIARY C D 28 Government is intermediary (A&B) Timing of recognition by government Agreement executed and Assets received Elements recognized Asset for donated resources Liability to third party (= split interest) Deferred inflow of resources (= government s share) Changes in value of assets direct adjustment Asset Liability/deferred inflow 29 A. Lead interest beneficiary Statement of position Asset for donated resources Liability to remainder interest beneficiary Deferred inflow for government s lead interest Statement of resource flows Revenue for beneficial interest applicable to period 30 10
11 B. Remainder interest beneficiary (lifeinterest in real estate) Statement of position Donated asset (investment or capital asset) If capital asset, reduce value for consumption during term by an adjustment to deferred inflow of resources Liability for legal obligation to sacrifice resources (future insurance, maintenance, or repairs) The continued right to use the asset is not a liability Deferred inflow of resources for the difference Statement of resource flows Revenue for beneficial interest at termination 31 B. Remainder interest beneficiary (other than life-interest in real estate) Statement of position Liability to lead interest beneficiary Deferred inflow for government s remainder interest Statement of resource flows Revenue for beneficial interest at termination If actual residual amount exceeds deferred inflow Gain (accrual) Revenue (modified accrual) 32 Some other intermediary (C&D) Timing of recognition by government Sufficient information to measure the government s beneficial interest The government is specified by name as beneficiary The agreement is irrevocable The donor has not granted variance power to the intermediary The donor does not control the intermediary The agreement establishes a legally enforceable right for the government Elements recognized Asset (fair value) Deferred inflow of resources 33 11
12 C. Lead interest beneficiary Statement of position Asset Deferred inflow of resources Statement of resource flows Revenue for beneficial interest applicable to the period 34 D. Remainder interest beneficiary Statement of position Asset Deferred inflow of resources Statement of resource flows Revenue for beneficial interest at termination 35 Pension Issues GASB Statement No. 82 FYE 6/30/17* (earlier application encouraged) *Later for one provision in some limited circumstances 36 12
13 Three issues Measure of payroll Selection of assumptions Classification of employer-paid member contributions 37 Measure of payroll Replace covered-employee payroll with covered payroll Covered-employee payroll (total compensation of covered employees) Even if a portion is not relevant to employer contributions Covered payroll (portion of payroll on which contributions are based) Pensionable payroll 38 Selection of assumptions Actuarial assumptions cannot deviate from Actuarial Standards of Practice (ASOPs) 39 13
14 Classification of employer-paid member contributions Classified like similar forms of compensation other than pensions (fringe benefits) 40 Question 1 Which of the following amounts should be included as part of the calculation of pension expenditures for employers associated with private-sector cost-sharing plans? A. Related to the period and paid then B. Related to the period and billed, but not yet paid C. Related to the period, but not yet billed D. All of the above E. Both A and B 41 Question 2 A pool that significantly fails to comply with the criteria of GASB 79 in a given period is not permitted to use amortized cost in future periods. A. True B. False 42 14
15 Question 3 If a pool s portfolio has $10,000 in assets (all liquid), what would be the maximum amount of illiquid assets it could acquire without disqualifying itself from using amortized cost accounting for all of its portfolio? A. $0 B. $500 (95% of $10,000) C. $526* *$10,000/.95 = $10,526; $10,526 - $10,000 = $ Question 4 Which of the following statements is true if a primary government is the sole corporate member of the board of notfor-profit component? A. Blending is mandatory B. Blending is optional C. Blending is prohibited 44 Question 5 Which of the following is true in connection with the government s interest in life-interest real estate? A. The asset should not be reduced for consumption until the end of the term B. A liability should be recognized for the right to use the asset C. Both A and B D. Neither A nor B 45 15
16 Question 6 Under GASB 82, which measure of pay should be used as a point of reference for required supplementary information regarding pensions? A. Covered payroll B. Covered-member payroll C. Either A or B 46 GASB Exposure Drafts Part II First Section 47 Fiduciary activities GASB Exposure Draft (12/15) Proposed effective date: FYE 12/31/
17 Background Issues I. Proper use of fiduciary funds II. Fiduciary fund types III. Liability recognition IV. Level of detail additions and deductions 49 I. Proper use of fiduciary funds Component units that are fiduciary in nature Control + postemployment benefit plan assets Most defined contribution plans would not meet this criterion Control + two additional criteria 50 Control Two possibilities The primary government holds the assets or The government has the ability to direct the use, exchange, or employment of the assets Clarifications Direct = designate a third party to perform a government s fiduciary duties without assuming them Unaffected by restrictions on use 51 17
18 Two additional criteria 1. The assets are not derived solely from the government s own-source revenue and 2. One or more of the following A. Nature of arrangement B. Identity of beneficiaries C. Pass-through grants 52 2A. Nature of arrangement Administered through trust or equivalent agreement Government itself not a beneficiary Assets dedicated to providing benefits to recipients Assets legally protected from the creditors of the government 53 2B. Identity of beneficiaries Individuals not required to be Residents Recipients of the government s services Organizations or other governments not Part of the financial reporting entity Recipients of the government s goods or services 54 18
19 2C. Pass-through grants Provided the government does not have administrative or direct financial involvement in the program 55 Summary Component units that are fiduciary in nature Control + postemployment benefit plan assets Control + not own-source revenue + either Nature of arrangement, or Identify of beneficiaries, or Pass-through grant 56 SUMMARY CHART CU FIDUCIARY IN NATURE PENSION OR OPEB PLAN ASSETS CONTROL NOT OWN-SOURCE REVENUE NATURE OF ARRANGEMENT IDENTITY OF BENEFICIARIES PASS- THROUGH GRANTS 57 19
20 II. Fiduciary fund types Replace agency funds with custodial funds Trust funds vs. custodial funds Trust funds Nature of arrangement criterion met Custodial funds (replace agency funds) Nature of arrangement criterion not met 58 Fiduciary fund types (cont.) Trust funds Pension (and other employee benefit) trust funds Employee benefit plans Contributions irrevocable Investment trust funds External portion of pools and investment accounts Private-purpose trust funds All other trust activities Custodial funds Subcategory external investment pool for pool assets not held in a trust or equivalent arrangement 59 Business-type activities May report asset and liability (rather than fiduciary fund) for assets held for 3 months or less Additions and deductions = cash flows from operating activities 60 20
21 III. Liability recognition Demand for the resources has been made, or No further action or condition is required to be met to be entitled to receive the resources Example, tax collections on behalf of other governments 61 IV. Level of detail additions and deductions trust funds Additions by source Separately report Investment income Investment costs (that is, costs that are separable from both investment income and administrative expense) Net investment income Deductions by type Report administrative costs 62 Level of detail additions and deductions custodial funds If resources held for three months or less Option to report single aggregated totals for Additions Deductions 63 21
22 Asset retirement obligations GASB Exposure Draft (12/15) Proposed effective date: FYE 12/31/18 64 Background Asset retirement obligation (ARO) Legally enforceable liability associated with the retirement of a tangible capital asset Retirement = sale, abandonment, recycling, other types of disposal Results from the normal operations of capital assets Examples Costs associated with Decommissioning nuclear reactors Dismantling and removing sewage treatment plants 65 Recognition Three criteria Occurrence of external obligating event Source of (potential) obligation Occurrence of internal obligating event Circumstances that trigger the obligation Reasonably estimable 66 22
23 External obligating events Existing laws and regulations Legally binding contracts Court judgments 67 Internal obligating events Occurrence of contamination from normal use Events other than contamination Obligation based on use? Placing the asset into operation and consumption (mine) Obligation not based on use? Placing the asset into operation (wind turbine) Permanent abandonment before ready for use? Abandonment (sewage treatment plant) Acquiring an asset that has an existing ARO Acquisition 68 Elements recognized Credit ARO liability Debit Deferred outflow of resources Recognize as expense in a systematic and rational manner over useful life Expense Abandonment before asset is ready for use 69 23
24 Initial measurement Best estimate of current value (not present value) of outlays expected to occur Probability weighting of potential outcomes should be used if sufficient evidence is available or can be obtained at reasonable cost Otherwise use most likely amount in range of possible outcomes 70 Remeasurement Annual adjustment for effects of inflation/deflation Annual evaluation of effect of all other relevant factors Adjustment if effects on estimated asset retirement outlays are significant Examples Change in price not attributable to inflation or deflation Change in technology Change in legal requirements Change in type of equipment, facilities, or service 71 Treatment of changes in estimate Prior to retirement Prospective change in amortization After retirement Immediate recognition 72 24
25 Governmental funds Recognize liabilities for goods and services when received to the extent due and payable 73 Financial assurance requirements Disclose How those requirements are being met Amounts of assets restricted for payment (if not displayed separately) 74 Other note disclosure Descriptive information about the nature and timing of AROs Methods and assumptions used to estimate AROs Estimated remaining useful life of associated assets Any liability for an ARO has not been recognized only because it is not yet reasonably estimable (and the reason) 75 25
26 Leases GASB Exposure Draft (1/16) Proposed effective date: FYE 12/31/19 76 Scope Definition of a lease A contract that conveys the right to use a nonfinancial asset (the underlying asset) for a period of time in an exchange or exchange-like transaction Certain leases excluded from lease accounting (more later) Short-term leases Agreements that ultimately transfer ownership of the underlying asset to the lessee 77 Lease term Period during which lessee has Noncancelable right to use underlying asset Adjusted for Option to extend (if exercise is reasonably certain) Option to terminate (if exercise is reasonably certain) Includes fiscal funding clauses 78 26
27 Lessee accounting Initial recognition Lease asset Lease liability Subsequent accounting Lease payments Reduction of liability Interest expense Amortization of lease asset Shorter of lease term or useful life of underlying asset 79 Lessee statement of position Underlying tangible capital asset Right to use underlying tangible capital asset Current Guidance Yes No Proposed Guidance No Yes Lease payable Yes Yes 80 Measurement Lease liability Present value (PV) of payments over lease term Lease asset PV of payments over lease term + Payments made at or before the beginning of the term + Certain indirect costs 81 27
28 Note disclosure Description of leasing arrangements Amount of lease assets Schedule of future lease payments 82 Lessor accounting Initial recognition Lease receivable Continue to report underlying asset Deferred inflow of resources Subsequent reporting Lease payments Reduction of receivable Interest revenue Reduction of deferred inflow of resources revenue Over term of the lease Systematic and rational manner 83 Lessor statement of position Current Guidance Proposed Guidance Lease receivable Yes Yes Underlying capital asset No Yes 84 28
29 Measurement Lease receivable PV of lease payments over lease term Deferred inflow of resources PV of lease payments over lease term + Payments received at or prior to the beginning of the lease that relate to future periods 85 Note disclosure Description of leasing arrangements Total amount of lease revenue 86 Short-term leases Definition A lease that, at its beginning, has a maximum possible term under the contract of 12 months or less Includes options to extend Accounting Lessee Expense based on the payment provisions of the contract Lessor Revenue based on the payment provisions of the contract 87 29
30 Agreements that transfer ownership Agreements that ultimately transfer ownership of the underlying asset to the lessee Treat as financed purchase if asset 88 Contracts with multiple components Separate lease component from nonlease component Separate underlying assets normally treated as separate contracts Sometimes multiple lease components can be treated as a single lease unit 89 Contract combinations Criteria for treating as a single contract Entered into at or near the same time With the same counterparty Certain additional criteria met Then evaluate as a contract with multiple components 90 30
31 Modifications Amendments to lease contracts Normally a modification If right to use reduced = partial termination Treatment Lessee Remeasure lease liability Adjust lease asset Lessor Remeasure lease receivable Adjust deferred inflow 91 Terminations Treatment Lessee Reduce lease liability Reduce lease asset Difference = gain/loss Lessor Reduce lease receivable Reduce deferred inflow Difference = gain/loss 92 Subleases Separate transaction Lessee now lessor 93 31
32 Sale-leaseback Must include qualifying sale Otherwise borrowing Separate treatment Sale Lease-back Difference between carrying value of asset sold and net proceeds = deferred inflow/outflow of resources Amortize over the term of the lease-back 94 GASB Exposure Drafts Part II Second Section 95 Certain Debt Extinguishment Issues GASB Exposure Draft (8/16) Proposed effective date: FYE 6/30/
33 Topics 1. Debt extinguishment as the result of placing (exclusively) existing resources into trust 2. Accounting for prepaid insurance on refunded debt 3. Additional disclosure for debt defeased in substance Focus of proposed guidance on debt extinguishments using existing resources SOURCE OF PAYMENT PROCEEDS OF REFUNDING DEBT EXISTING RESOURCES PAYMENT TO DEBT HOLDERS TO TRUSTWITH LEGAL DEFEASANCE TO TRUST WITH IN-SUBSTANCE DEFEASANCE CURRENT REFUNDING ADVANCE REFUNDING FOCUS OF ED 98 Criteria for in-substance defeasance Same as for refundings Resources placed in trust Monetary assets (risk free as to amount, timing, and collection) Available solely to make scheduled debt service payments Possibility of future payments remote 99 33
34 Proposed display Economic resources (no deferral of recognition) Reacquisition price - Net carrying value of debt (loss)/gain (reported separately) Current financial resources Reacquisition price = debt service expenditures 100 Proposed disclosure Period of defeasance General description of the transaction (examples) Amount of debt extinguished Amount placed in trust Reasons for defeasance Cash flows required to service the defeased debt Later periods Amount of in-substance defeased debt that remains outstanding May be combined with amount reported in connection with refundings Prepaid insurance on extinguished debt Include in calculating net carrying amount of extinguished debt
35 3. Note disclosure for debt defeased in substance If nothing prohibits the substitution of essentially risk-free monetary assets with monetary assets that are not essentially risk free In the period Disclose that fact In all periods the defeased debt remains outstanding Disclose the amount of outstanding defeased debt for which the risk of substitution remains 103 Omnibus 201X GASB Exposure Draft (9/16) Proposed effective date: FYE 6/30/ Blending CUs of BTAs Existing guidance Two options for reporting blended component units (CUs) of business-type activities (BTAs) Include in single column reported for the primary government, or Present separate blended CU column within the primary government Proposed clarification No effect on presentation of discretely presented CUs
36 Goodwill outstanding at transition GASB 69 guidance for goodwill: Goodwill Difference between price paid and net position acquired Positive amount ($ paid > net position acquired) Deferred outflow of resources Negative amount ($ paid < net position acquired) Reduction in value of nonfinancial assets acquired Amounts reported at transition Positive goodwill = reclassify as deferred outflow of resources Negative goodwill = eliminate by an adjustment to net position 106 Fair value measurement and application Limited scope Investment vs. capital asset for insurance entities Existing guidance = classify based on predominant use Proposed guidance = classify based on GASB 72 definition of investment General scope Clarify that amortized cost is an option rather than a requirement for Money market investments Interest-earning investment contracts 107 Timing for measuring postemployment benefits in governmental funds Contrast Economic resources measurement focus As of the measurement date Current financial resources measurement focus As of the end of the reporting period
37 On-behalf benefit payments for postemployment benefits (governmental funds) No change from GASB 24 Contributions made on employer s behalf +/- Adjustments to nonemployer payable + Benefits paid on employer s behalf Expenditures/revenues 109 Payroll-related measures for OPEB Background Use = point of reference Two possible measures Covered payroll ( pensionable payroll ) Covered-employee payroll (total payroll for covered employees, whether pensionable or not) GASB 82 for pensions used covered payroll Complication for OPEB benefits not always based on pay 110 Proposed measures for plans CONTRIBUTION BASED ON PAY COVERED PAYROLL OPEB PLANS CONTRIBUTION NOT BASED ON PAY NO MEASURE PROVIDED
38 Proposed measures for employers BENEFITS BASED ON PAY BENEFITS NOT BASED ON PAY EMPLOYERS THAT OFFER OPEB TRUST USED TRUST NOT USED COVERED PAYROLL COVERED- EMPLOYEE PAYROLL COVERED- EMPLOYEE PAYROLL COVERED- EMPLOYEE PAYROLL 112 Employer-paid member contributions for OPEB Same guidance as for pensions Treat as employee contributions Like salaries, wages, and fringe benefits 113 Alternative measurement method for OPEB Increase in the number of simplified assumptions permitted
39 OPEB provided through private-sector plans Same approach as for pension plans participating in privatesector plans Practice for defined contribution plans prior to GASB 68 Expense Amounts paid Amounts due and payable related to period 115 Question 7 For purposes of determining whether an activity is fiduciary in character, which of the following criteria must be met to demonstrate control? A. The government must hold the assets B. The government must be able to direct the use of the assets C. Both A and B D. Either A or B 116 Question 8 An ARO should be recognized, if measurable, if: A. An external obligating event has occurred B. An internal obligating event has occurred C. Either A or B D. Both A and B
40 Question 9 Under the proposed new lease accounting, which of the following would report two assets in connection with a lease? A. Lessee B. Lessor C. Both A and B D. Neither A nor B 118 Question 10 How should a governmental fund report its payment of existing resources to a trust to accomplish an in-substance defeasance? A. Expenditures B. Other financing use C. Either A or B, depending on the circumstances 119 Question 11 Which measure of pay should be used as a point of reference in RSI for OPEB? A. Covered payroll B. Covered employee payroll C. No measure D. All of the above, depending on the circumstances E. A or B, depending on the circumstances
41 GASB Implementation Guidance Update 2016 Part III 121 Focus 83 New Questions 122 Deposits and investments [4.1] Disclosures not required for Deposits with the U.S. Treasury for unemployment compensation Interfund loans Equity in joint ventures Reason = not deposits or investments
42 Deposits and investments [4.2] Scope of disclosure requirements Include: all items reported on the face of the financial statements Amounts held by third parties on the government s behalf (cash with fiscal agent) Amounts held as a fiduciary or custodian (state investment pool) Exclude: items not reported on the face of the financial statements Securities held in escrow for refunded debt 124 Deposits and investments [4.3] Fair value (FV) disclosure not required for cash equivalents Cash equivalents normally reported at amortized cost 125 Deposits and investments [4.4] Situation Component unit Separate report Position in internal investment pool Resolution Disclosure for position in pool, not underlying assets
43 Deposits and investments [4.5] Situation Certificates of deposit (CDs) Qualify as nonparticipating interest-earning investment contracts Resolution Provide disclosures for deposits 127 Deposits and investments [4.6] Situation Negotiable CDs Qualify as participating interest-earning investment contract Resolution Measure at fair value Provide disclosures for Investment risk Fair value 128 Deposits and investments [4.7] Situation Some investment instruments in portfolio highly sensitive to changes in interest rates Resolution Disclose effect on interest rate risk for overall portfolio Choose a method of interest rate risk disclosure that reflects special sensitivity, or Disclose the terms of those instruments
44 Deposits and investments [4.8] Situation Investment in limited partnership Foreign currency Resolution Foreign currency risk disclosure normally not applicable to limited partnerships Exception: functionally equivalent to an investment in foreign securities Partnership has significant investments which are all in Japan 130 Cash flows reporting [4.9] Classification of rental income Generated by an asset classified as an investment Cash flows from investing activities Otherwise Cash flows from operating activities Even if reported as nonoperating revenues on the operating statement 131 Financial reporting entity [4.10] Same rules on eliminations Primary government total column Government-wide total column
45 Financial reporting entity [4.11] Treatment of acquisition of a corporation Depends on reason for acquisition To directly enhance the ability to provide services to the public Evaluate as potential component unit Investment Equity interest ownership = investment 133 Financial reporting entity [4.12] General partner in legally separate limited tax credit partnership (component unit) Classification of net position Government (general partner) Proportionate share of each of the three components of net position Limited partners Balance (restricted net position-nonexpendable-minority interest) 134 Financial reporting entity [4.13] Primary government serves as trustee for a defined benefit pension plan Pension trust fund (if trust) Agency fund (if not a trust) Not a potential component unit
46 Pensions [4.14] Situation Plan assets may be returned to employer if funded status reaches specified level Regardless of whether all plan obligations have been fulfilled Resolution Not a trust Contributions not irrevocable 136 Pensions [4.15] Fair value reporting unaffected by Intent to hold debt securities to maturity Legal restriction that prevents sale below cost 137 Pensions [4.16] Date for plan disclosure of: 1) number of employees covered by benefit terms, and 2) benefit terms Facts as of the end of the plan s fiscal year Not facts as of the valuation date
47 Pensions [4.17] Situation Single-employer or cost-sharing pension plan Update to plan reporting date Resolution Disclose fact that update took place Not specific information about the update process 139 Pensions [4.18] Situation Change in total pension liability resulting from a change in the discount rate Resolution Schedule of changes in the net pension liability Present as change of assumption or other input 140 Pensions [4.19] Date of actuarial valuation used to determine the net pension liability at the plan s fiscal year-end Can vary in relationship to the plan s fiscal year end from period to period Still must fall within 24 months of the plan s reporting date
48 Pensions [4.20] Situation Cost-of-living adjustment (COLA) if investment earnings rate exceeds actuarially assumed rate Resolution Include in projection of benefit payments Adjusting the long-term expected rate of return used for discounting is not an acceptable alternative 142 Pensions [4.21] Plan refunds of employee contributions Include as a benefit payment when: Projecting benefit payments to measure the total pension liability Determining the discount rate 143 Pensions [4.22] Discount rate for pay-as-you-go funding Still required to exclude a portion of projected contributions for purposes of calculating the discount rate (unless closed plan) Less: Total projected contributions Portion to finance benefits for future employees Projected contributions for discount rate
49 Pensions [4.23] Deferred outflow for employer contributions made after the measurement date Component of the change in the net pension liability the following year 145 Pensions [4.24] Amortizing pension-related deferred outflows/inflows Average expected remaining service lives of employees provided with benefits For each active and inactive employee Not a weighted average 146 Investments and investment pools [4.25] Investments that pension plans may report at cost or amortized cost Nonparticipating interest-earning investment contracts Money market investments Participating interest-earning investment contracts with a remaining maturity of one year or less at the time of purchase
50 Investments and investment pools [4.26] Reporting retainage Fair value (if invested) If separate fund used Private-purpose trust fund Agency fund (if amounts are held only for a short period) 148 Investments and investment pools [4.27] Scholarship money temporarily invested in commercial paper prior to award Commercial paper = investment 149 Investments and investment pools [4.28] Changes in fair value for regulated industries Option 1(both statement of changes and statement of position) Report increases and decreases in the operating statement Reverse them at the end of the statement Net costs to be recovered from future billings Report a regulatory amount on the statement of net position Option 2 (just statement of position) Ignore the operating statement altogether and simply report a regulatory amount on the statement of net position
51 Investments and investment pools [4.29] Assets purchased for a dedicated purpose can still be investments Examples Restricted assets Assets in debt service or reserve funds 151 Investments and investment pools [4.30] Situation Bond covenant calls for cash-basis or amortized-cost basis for some purposes Determine the amounts to be placed on deposit in reserve funds Calculate coverage ratios Resolution No effect on GAAP reporting Additional schedules and narrative explanations may be needed to demonstrate compliance 152 Investments and investment pools [4.31] Debt security that is not actively traded Still measure at fair value Various alternative methods for determining fair value for thinly traded debt securities
52 Investments and investment pools [4.32] Restrictions on the sale of an asset (effect on fair value) Specific to the asset itself Part of calculation of fair value Example: sale of an asset in a private offering Specific to the government holding the asset Not part of the calculation of fair value Example: assets pledged as collateral 154 Investments and investment pools [4.33] Land acquired for conservation purposes and leased for mineral rights Aggregation affects classification Single asset (land + mineral rights) Capital asset Separate assets Land = capital asset Mineral rights = investment 155 Investments and investment pools [4.34] Transaction costs Relevant to determining most advantageous market Not relevant to determining fair value Practical result The most advantageous market may not result in the highest fair value (!)
53 Transaction cost: most advantageous market Transaction costs relevant for determining most advantageous market Market A Market B $26 sales price (3) transaction cost (2) cost to transport to market $21 net amount received $25 sales price (1) transaction cost (2) cost to transport to market $22 net amount received 157 Transaction costs: determination of fair value Transaction costs not relevant for determining fair value Market A Market B $26 sales price (2) cost to transport to market $24 net amount received $25 sales price (2) cost to transport to market $23 net amount received 158 Investments and investment pools [4.35] Must use principal market unless unable to do so
54 Investments and investment pools [4.36] Trust land Income dedicated to supporting public education Some parcels used for recreational purposes Aggregation affects classification One unit of account Capital asset Parcels reported separately Some capital assets Some investments 160 Investments and investment pools [4.37] Examples of capital assets that can produce income Leased passenger terminals and hangars Water-treatment plants and distribution systems Leased easements on state land surrounding a waterway 161 Investments and investment pools [4.38] Buildings Use affects classification Used exclusively to generate cash Investment Rented to individuals to provide low-income housing Capital asset
55 Investments and investment pools [4.39] Office building with several floors rented to retail merchants Aggregation affects classification Building single unit Capital asset Building separate unit for each floor Floors used by government = capital assets Floors rented out = investment 163 Investments and investment pools [4.40] Situation Building Acquired for use with a grant Leased out until start of grant Resolution Classify based on intent at time of acquisition Acquired for use = capital asset 164 Investments and investment pools [4.41] Situation Loans to a housing authority Fixed term Interest rate commensurate with market rates Resolution Loans for programmatic purposes are not investments
56 Investments and investment pools [4.42] One-year option Money market investments Positions in participating interest-earning investment contracts Scope Not available to governmental external investment pools Application of one-year criterion When acquired 166 Investments and investment pools [4.43] Fair value accounting for deep-discount debt No need to accrete interest (already reflected in fair value) 167 Investments and investment pools [4.44] Situation Pension plan invests in limited partnership Partnership calculates net asset value (NAV) NAV not calculated as of the plan s reporting date Resolution Adjust NAV by rolling it forward to the reporting date to take into account subsequent changes Capital contributions Distributions received from the general partner Changes in the composition of assets or liabilities Changes in the fair value of assets or liabilities
57 Investments and investment pools [4.45] Option to use amortized cost Entities other than investment pools Money market investments or participating interest-earning investment contracts Based on the time as of acquisition Investment with a remaining maturity of three months would not qualify if it was acquired 15 months earlier 169 Investments and investment pools [4.46] Fair value of an interest rate swap in a liability position Consider the effect of the government s own credit quality and any other factors that might affect the likelihood that the obligation will or will not be fulfilled 170 Investments and investment pools [4.47] A short sale is an obligation to deliver securities, rather than an investment
58 Investments and investment pools [4.48] Situation Life insurance contract that covers the lives of employees and former employees Government is beneficiary Resolution Report at cash surrender value Death benefits reported as income only upon the death of the insured Not actuarially expected or projected basis 172 Investments and investment pools [4.49] Brokerage fees and legal fees arising in connection with the purchase or sale of an investment Not part of the price of the investment Expense or expenditure when incurred 173 Investments and investment pools [4.50] Investment transactions should be accounted for as of the trade date
59 Investments and investment pools [4.51] Defined benefit pension plans may report an aggregate amount for investment income Reporting of separate components not required 175 Investments and investment pools [4.52] GASB standards and governmental external investment pools All standards apply Most commonly applied GASB 3 (deposits, investments) GASB 28 (securities lending) GASB 34 (reporting model) GASB 38 (certain note disclosures) GASB 40 (deposit and investment risk disclosures) GASB 53 (derivatives) GASB 62 (FASB and AICPA guidance) GASB 79 (money market pools) 176 Investments and investment pools [4.53] Determination whether capital asset or investment Normally when asset acquired Exception: implementation of GASB 72 Facts and circumstances at the time of implementation
60 Financial reporting model [4.54] Sources for determining acquisition value Manufacturers catalogs Price quotes in periodicals Recent sales of comparable assets Professional assistance not required 178 Financial reporting model [4.55] Infrastructure built and donated by developers Developer s cost acceptable method for determining acquisition value 179 Financial reporting model [4.56] Right-of-way easement on land underlying infrastructure (not owner of land itself) Right-of-way asset equivalent to land Report separately from infrastructure Report at acquisition value Use of a nominal value not appropriate Value of underlying land may be a good measure of acquisition value
61 Financial reporting model [4.57] Land or easements associated with infrastructure Classify separately from related infrastructure itself Report at acquisition value 181 Financial reporting model [4.58] The purchase of land for nominal amount equivalent to donation Report at acquisition value 182 Financial reporting model [4.59] Prior period adjustment for capital asset not initially recorded Report at acquisition value when first acquired Not current acquisition value
62 Financial reporting model [4.60] Situation Restricted unspent bond proceeds at year end Current liability for construction costs Resolution Option 1: current asset Because it can be used to pay a current liability Option 2: noncurrent asset Because it must be used for the acquisition or construction of a noncurrent asset 184 Financial reporting model [4.61] Postemployment plans included in an employer report Report aggregated data for all plans by fund type Information for individual plans: Refer to separately issued plan financial statements; or Include financial statements for each plan in notes 185 Financial reporting model [4.62] Investment trust funds and pension trust funds can be reported together in the same financial statement Even though more detail is required for pension plans Investment trust funds can either Display data at the same level as other fiduciary funds Clearly note on the face of the financial statements that summarized amounts exclude the more detailed display provided for pensions
63 Financial reporting model [4.63] Situation Public employee retirement system (PERS) 2 defined benefit pension plans 1 cost-sharing pension plan 1 active employee healthcare plan 1 OPEB plan Resolution No requirement for combined statements Detail on separate postemployment benefit plans Separate columns for each plan Separate combining statements in basic financial statements 187 Financial reporting model [4.64] Possible contents of disclosure of capitalization policy Capitalization thresholds Methods used for determining historical cost or acquisition value Extent of infrastructure capitalization 188 OPEB [4.65] Postemployment healthcare benefits always classified as OPEB Reported separately by both plan and employers
64 OPEB [4.66] Postemployment benefits (other than healthcare) provided through a pension plan Treat as a pension benefit by both the employer and the plan 190 Derivatives [4.67] Derivative instrument that no longer qualifies as a hedging derivative Automatically becomes investment derivative instrument All disclosures that apply to investments, derivatives, and fair value 191 Derivatives [4.68] Investments underlying synthetic guaranteed investment contracts (SGICs) Provide risk disclosures (GASB 40) Provide investment disclosures (GASB 72)
65 IRC Section 457 Deferred Compensation Plans [4.69] Situation IRC Section 457 deferred compensation plan purchases annuity contracts in the name of individuals Resolution Equivalent to an allocated insurance contract Government reports neither an asset for the contracts themselves, nor the related liabilities Benefit payments = amounts paid to the insurance company 193 Nonexchange transactions [4.70] Donated food commodities Nonexchange transaction Recognize revenue As soon as all eligibility requirements met o Typically in the period received Acquisition value of donated commodities 194 Nonexchange transactions [4.71] Donation of a capital-type asset to a governmental fund For use in operations (capital asset) No asset or revenue For sale Asset and revenue in the fund that receives the proceeds
66 Intangible assets [4.72] Intangible assets that qualify as investments Subject to same fair value rules as other types of investments 196 Governmental fund-type definitions [4.73] Situation Storm water fees that are restricted to storm water activities (capital or operating) Anticipated ongoing subsidy = 25% Fees not designed to recover depreciation or debt service Resolution Special revenue fund may be used Capital projects fund not required Enterprise fund not required 197 Service concession arrangements [4.74] Situation Service concession arrangement (SCA) Agreed-upon rates that may be imposed on SCA customers Resolution Meets criterion that government must retain the ability to modify or approve prices
67 Items previously reported as assets and liabilities [4.75] Insurance component of bond issuance cost Amortize as interest expense Not insurance expense Rationale Insurance purchased to obtain lower interest rate 199 Nonexchange financial guarantees [4.76] Receivable recognized by blended component unit Amount of liability, but Continue to evaluate for collectability 200 Tax abatement disclosures [4.77] Situation Government uses tax increment financing (TIF) to encourage economic development Issues bonds to finance infrastructure Sales tax revenues that exceed a baseline set aside for bond repayment Resolution TIFs not automatically tax abatements Earmarks rather than reduces taxes No agreement that requires performance
68 Tax abatement disclosures [4.78] Situation Business allowed to retain 40% of state sales tax collected from customers Technically, sales tax is a tax on the customer, not the business The state is not reducing the business s tax The state is allowing the business to keep a portion of someone else s tax payable to the state Resolution Tax abatement because state foregoes revenue 202 Tax abatement disclosures [4.79] Situation Tax abatement requires that the agreement precede performance by counterparty Tax abatement starts prior to performance Resolution It is a tax abatement It is the agreement that must precede performance The abatement itself can occur earlier 203 Tax abatement disclosures [4.80] Situation State abates gas tax for companies that go green Affects shared revenue of local governments Resolution Tax abatement for state Reduces state tax revenue Not a tax abatement for local governments Shared revenue is not a tax of the recipient Reduction of shared revenue is not a reduction of tax
69 Tax abatement disclosures [4.81] Situation 3 major programs = 20 agreements 5 remaining agreements Resolution Disclosure for 5 remaining agreements depends on how major programs were presented Information presented in the aggregate for each major program? Information presented in aggregate for remaining 5 Quantitative threshold used to disclose individual agreements for major programs? Same quantitative threshold applies to remaining Tax abatement disclosures [4.82] Situation For government s own programs Uses quantitative threshold for individual agreements Resolution For agreements of other governments May use different quantitative threshold May present information in the aggregate 206 Tax abatement disclosures [4.83] Situation State law prohibits disclosure of aggregated tax information that relates directly or indirectly to a taxpayer s income or earnings Resolution Disclose whatever information is not prohibited by state law Describe the type of information omitted and cite state law that prevents inclusion
70 Question 12 Investment disclosures would be required for which of the following? A. Cash with fiscal agent B. Amounts held as a fiduciary or custodian C. Securities held in escrow for refunded debt D. All of the above E. Both A and B 208 Question 13 How should rental income be classified in a statement of cash flows? A. Cash flows for operating activities B. Cash flows from investing activities C. Either A or B, depending on the circumstances 209 Question 14 Which of the following factors would affect whether an investment in debt securities should be measured at fair value? A. Intent to hold to maturity B. Legal restriction that prevents sale below cost C. Both of the above D. None of the above
71 Question 15 How should land acquired for conservation purposes and leased for mineral rights be classified? A. Capital asset B. Investment C. Both A and B D. Either A or C 211 Question 16 A local government must provide tax abatement disclosures if a state abatement of tax revenues to a third party affects the amount of shared revenue the local government will receive. A. True B. False 212 Update on Reporting Model Review Part IV
GASB UPDATE. UGFOA April 19, 2017
GASB UPDATE UGFOA April 19, 2017 Effective Dates GASB Statement Effective Date Fiscal Year Effective 74 OPEB Other Post- Employment Benefits - Plans Periods beginning after June 15, 2016 75 OPEB - Employers
More informationANNUAL STATE AND LOCAL GOVERNMENT ACCOUNTING UPDATE WHAT S NEW AND WHAT S NEXT? 4/17/18
ANNUAL STATE AND LOCAL GOVERNMENT ACCOUNTING UPDATE WHAT S NEW AND WHAT S NEXT? 4/17/18 Today s presenter Michelle Horaney Partner, National Professional Standards Group/National Leader for Education RSM
More information2017 GASB Update (Past, Present and Future) Janice Fergusson, CPA
2017 GASB Update (Past, Present and Future) Janice Fergusson, CPA GASB Update Recent Past GASB 72 Fair Value Measurement and Application GASB 73 Pensions not within scope of GASB 68 GASB 76 GAAP Hierarchy
More informationGASB Update. Florida Court Clerks & Comptrollers 2018 Winter Conference. February 28, Christopher M. Davis, CPA, MBA, CFST
GASB Update Florida Court Clerks & Comptrollers 2018 Winter Conference February 28, 2018 Christopher M. Davis, CPA, MBA, CFST 2018 Crowe Horwath LLP 2018 Crowe Horwath LLP Course Objectives At the end
More informationFSFOA GASB Update. November 14, 2017
FSFOA GASB Update November 14, 2017 Course Topics Investments Fair Value OPEB Tax Abatements Pension Amendments Blending Criteria Irrevocable Split Interest Agreements Asset Retirement Obligations Fiduciary
More information11/7/2018. Emily Sobczak Greene Finney, LLP November, 2018
GAAP UPDATE 2018 Emily Sobczak Greene Finney, LLP November, 2018 GAAP Update Current Topics GASB 75 OPEB Reporting for Employers GASB 81 Irrevocable Split-Interest Agreements GASB 85 Omnibus 2017 GASB
More information22 nd Annual Governmental GAAP Update #GFOA. Speakers. Program Overview. Government Finance Officers Association
22 nd Annual Governmental GAAP Update #GFOA Government Finance Officers Association November 2, 2017 December 7, 2017 January 18, 2018 Speakers 2 Chris Morrill, Executive Director/CEO, GFOA Todd Buikema,
More information22 nd Annual Governmental GAAP Update #GFOA
22 nd Annual Governmental GAAP Update #GFOA Government Finance Officers Association November 2, 2017 December 7, 2017 January 18, 2018 2 Speakers Chris Morrill, Executive Director/CEO, GFOA Todd Buikema,
More information22 nd Annual Governmental GAAP Update #GFOA
22 nd Annual Governmental GAAP Update #GFOA Government Finance Officers Association November 2, 2017 December 7, 2017 January 18, 2018 Speakers 2 Chris Morrill, Executive Director/CEO, GFOA Todd Buikema,
More information2018 Governmental GAAP Update
2018 Governmental GAAP Update David G. Phillips Greene Finney, LLP May 3, 2018 Recent GASBs GASB Pronouncements: Financial Reporting for Postemployment Benefit Plans Other Than Pensions (GASB #74) Accounting
More informationGASB Update Florida School Finance Officers Association June 12, 2018
GASB Update Florida School Finance Officers Association June 12, 2018 2017 Becker Professional Education Corporation. All rights reserved. The copyright in this material is owned by Becker Professional
More informationGASB & AUDIT UPDATE NOVEMBER 2018
GASB & AUDIT UPDATE NOVEMBER 2018 Alaska Government Finance Officers Association BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited
More informationImplementation Guide No. 20XX-X, Implementation Guidance Update 20XX
September 21, 2015 Comments Due: November 30, 2015 Proposed Implementation Guide of the Governmental Accounting Standards Board Implementation Guide No. 20XX-X, Implementation Guidance Update 20XX This
More informationGASB Update. Virginia Government Finance Officers Association 2017 Spring Conference
Virginia Government Finance Officers Association 2017 Spring Conference GASB Update Scott Reeser, Supervising Project Manager Governmental Accounting Standards Board The views expressed in this presentation
More informationGAAP Update. Introduction / Summary 6/1/17. GASB Statement No. 73
GAAP Update Greg Allison, Teaching Professor UNC-CH SOG Lee Carter, Vice President Capital Management of the Carolinas GASB Statement No. 73 Accounting and Financial Reporting for Pensions and Financial
More informationGASB UPDATE BARBARA BOYD, CPA SENIOR MANAGER PURVIS, GRAY AND COMPANY, LLP. Purvis, Gray & Company Certified Public Accountants
GASB UPDATE 1 BARBARA BOYD, CPA SENIOR MANAGER PURVIS, GRAY AND COMPANY, LLP Presentation Overview 2 Pronouncements currently being implemented Exposure Drafts/ Preliminary Views Pre-agenda Research Activities
More informationGASB Update. October 28, Jialan Su Project Manager Governmental Accounting Standards Board
GASB Update October 28, 2016 Jialan Su Project Manager Governmental Accounting Standards Board The views expressed in this presentation are those of Ms. Su. Official positions of the GASB on accounting
More informationRecent GASB Activity - Past
GASB Update 1 Recent GASB Activity - Past GASB 72 Fair value GASB 73 Certain pensions not administered through a trust GASB 76 GAAP hierarchy GASB 79 External investment pools 2 Recent GASB Activity -
More informationGASB Update. ACBO Conference. May 21, 2018
GASB Update ACBO Conference May 21, 2018 Jeff Jensen, CPA, Partner, Crowe Horwath LLP Matthew Nethaway, CPA, Partner, Crowe Horwath LLP Felipe Lopez, Vice President of Business Services, Cerritos College
More information2018 GASB UPDATE P R E S E N T E D B Y : J I M C R E E D E N, M I K E B E H M E & J E S S I C A H A A G
2018 GASB UPDATE P R E S E N T E D B Y : J I M C R E E D E N, M I K E B E H M E & J E S S I C A H A A G GOALS FOR TODAY Recently issued pronouncements Projects in process How to stay informed 2 RECENTLY
More informationOpening Remarks. SPEAKER David Bean Director of Research and Technical Activities GASB SPEAKER. SPEAKER David Vaudt Chairman GASB
GASB Update 2017 The views expressed in this presentation are those of the GASB Chairman and Staff. Official positions of the GASB on accounting matters are determined only after extensive due process
More informationGASB Update NASACT. July 18, 2018
NASACT GASB Update July 18, 2018 The views expressed in this presentation are those of the presenters. Official positions of the GASB are reached only after extensive due process and deliberations. 1 Opening
More informationSUTTER COUNTY MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS FOR THE YEAR ENDED JUNE 30, 2017
AND REQUIRED COMMUNICATIONS FOR THE YEAR ENDED JUNE 30, 2017 This Page Left Intentionally Blank AND REQUIRED COMMUNICATIONS For the Year Ended June 30, 2017 Table of Contents Page Memorandum on Internal
More informationDean Michael Mead, GASB Senior Research Manager
GASB Update Ohio GFOA September 23, 2016 Dean Michael Mead, GASB Senior Research Manager The views expressed in this presentation are those of Mr. Mead. Official positions of the GASB on accounting matters
More informationDavid Alvarez, CPA, CVA, CGMA Partner Carr, Riggs & Ingram, LLC
GASB Update 2018 1 David Alvarez, CPA, CVA, CGMA Partner Carr, Riggs & Ingram, LLC dalvarez@cricpa.com Alan Jowers, CPA Partner Carr, Riggs & Ingram, LLC ajowers@cricpa.com 2 GASB Activity - Past GASB
More informationGASB Update. New Hampshire Government Finance Officers Association. May 4, Lisa R. Parker, CPA, CGMA, Senior Project Manager
New Hampshire Government Finance Officers Association GASB Update May 4, 2018 Lisa R. Parker, CPA, CGMA, Senior Project Manager The views expressed in this presentation are those of Ms. Parker. Official
More informationIllinois GFOA Annual Conference, September 2018
Illinois GFOA Annual Conference, September 2018 GASB Update Frederick G. Lantz, C.P.A. Partner-in-Charge, Government Services, Sikich LLP Brian W. Caputo, Ph.D., C.P.A. Vice President for Administrative
More informationGASB Update. Virginia GFOA Spring Conference. Current Pronouncements. Paulina Haro
Virginia GFOA Spring Conference GASB Update Current Pronouncements Paulina Haro The views expressed in this presentation are those of Ms Haro Official positions of the GASB are reached only after extensive
More informationGASB Update. Rutgers Governmental Accounting and Auditing Update Conference. November 30, Michelle Czerkawski, Senior Project Manager, GASB
Rutgers Governmental Accounting and Auditing Update Conference GASB Update November 30, 2017 Michelle Czerkawski, Senior Project Manager, GASB The views expressed in this presentation are those of Ms.
More informationUpdate. California Society of Municipal Finance Officers. GASB Update OPEB and so much more
Update California Society of Municipal Finance Officers GASB Update OPEB and so much more The views expressed in this presentation are those of Mr. Bean. Official positions of the GASB are reached only
More informationA STAMPEDE OF NEW PRONOUNCEMENTS GASB UPDATE FOR GFOAT SPRING 2017 CONFERENCE
A STAMPEDE OF NEW PRONOUNCEMENTS GASB UPDATE FOR GFOAT SPRING 2017 CONFERENCE EFFECTIVE DATES JUNE 30, 2017 2017 STATEMENT 73 PENSIONS EMPLOYERS (OUTSIDE THE SCOPE OF STATEMENT 68) STATEMENT 74 OTHER POSTEMPLOYMENT
More informationGASB Update October 22, 2015
GASB Update October 22, 2015 Smitty 1 Presentation Overview Pronouncements currently being implemented Proposals available for public comment Projects currently being deliberated by the Board GASB News
More informationGASB Update Pamela Dolan, CPA Project Manager Governmental Accounting Standards Board
GASB Update Pamela Dolan, CPA Project Manager Governmental Accounting Standards Board The views expressed in this presentation are those of Ms. Dolan. Official positions of the GASB on accounting matters
More informationGASB Update. Presented by: Cheryl Wallace, Partner November 1, 2018
GASB Update Presented by: Cheryl Wallace, Partner November 1, 2018 GASB STATEMENTS GASB Statement Statement Name Effective Date No. 75 No. 83 Accounting and Financial Reporting for Postemployment Benefits
More informationGASB Update. Alabama Government Finance Officers Association. February 22, Lisa R. Parker, CPA, CGMA
Alabama Government Finance Officers Association GASB Update February 22, 2018 Lisa R. Parker, CPA, CGMA The views expressed in this presentation are those of Ms. Parker. Official positions of the GASB
More informationLatest Inventions from the Mind of GASB. March 15, Jerry E. Durham, CPA, CGFM, CFE
Latest Inventions from the Mind of GASB March 15, 2019 Jerry E. Durham, CPA, CGFM, CFE 1 Some GASB Concepts You Should Know Classification Measurement Focus Basis of Accounting Recognition Component Units
More informationGASB Update Pamela Dolan, CPA Project Manager Governmental Accounting Standards Board
GASB Update Pamela Dolan, CPA Project Manager Governmental Accounting Standards Board The views expressed in this presentation are those of Ms. Dolan. Official positions of the GASB on accounting matters
More information9/27/16. North Carolina State Treasurer s Conference
North Carolina State Treasurer s Conference GASB Update The views expressed in this presentation are those of Mr. Bean. Official positions of the GASB on accounting matters are reached only after extensive
More informationStandards and statements Where do we go from here?
Standards and statements Where do we go from here? 2018 MACATFO Summer Conference June 21, 2018 Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker
More informationGASB Update. Governmental Finance Officers Association of Alabama. February 4, Lisa R. Parker, CPA, CGMA, Senior Project Manager
Governmental Finance Officers Association of Alabama GASB Update February 4, 2019 Lisa R. Parker, CPA, CGMA, Senior Project Manager The views expressed in this presentation are those of Ms. Parker. Official
More informationManagement Letter. City of Byron Byron, Minnesota. For the Year Ended December 31, 2017
Management Letter City of Byron Byron, Minnesota For the Year Ended December 31, 2017 April 16, 2018 Management, Honorable Mayor and City Council City of Byron, Minnesota We have audited the financial
More informationGASB UPDATE. Kathryn Barrett, CPA Freed Maxick CPAs, PC Alexandria Battaglia, CPA R.S. Abrams & Co., LLP
GASB UPDATE Kathryn Barrett, CPA Freed Maxick CPAs, PC Alexandria Battaglia, CPA R.S. Abrams & Co., LLP 1 Effective for June 30, 2018 Statement No. 75 OPEB (employers) Statement No. 81 Irrevocable Split
More informationGASB Update Lisa R. Parker Senior Project Manager Governmental Accounting Standards Board
GASB Update Lisa R. Parker Senior Project Manager Governmental Accounting Standards Board The views expressed in this presentation are those of Ms. Parker. Official positions of the GASB on accounting
More informationACPEN. Effective Dates June-November, 2016 and GASB Update
ACPEN GASB Update The views expressed in this presentation are those of Mr. Bean. Official positions of the GASB on accounting matters are reached only after extensive due process and deliberation. 1 Effective
More informationNASACT Emerging Leaders Conference
NASACT Emerging Leaders Conference GASB Update The view s expressed in this presentation are those of Mr. Bean. Official positions of the GASB are reached only after extensive due process and deliberations.
More informationGASB Update Lisa R. Parker, CPA, CGMA Project Manager Governmental Accounting Standards Board
GASB Update Lisa R. Parker, CPA, CGMA Project Manager Governmental Accounting Standards Board The views expressed in this presentation are those of Ms. Parker. Official positions of the GASB on accounting
More informationAGA Montgomery Chapter
AGA Montgomery Chapter GASB Update Past, Present, 1 and Future The views expressed in this presentation are those of Mr. Bean. Official positions of the GASB on accounting matters are reached only after
More informationGREAT GASB! The Flood of New Standards Continue. Government Finance Officers Association of Texas Fall Conference October 28, 2016
GREAT GASB! The Flood of New Standards Continue Government Finance Officers Association of Texas Fall Conference October 28, 2016 1 Effective Dates June 30, 2016 and 2017 2016 2017 Statement 72 Fair value
More informationGASB Update. Planned Agenda. GASB Statement No /11/18. Recent relevant GASB pronouncements
GASB Update NCGFOA 2018 Fall Conference Winston-Salem, NC Presented by Lee Carter, CPA Capital Management of the Carolinas Planned Agenda Recent relevant GASB pronouncements GASB Statement Nos. 83, 84,
More informationNORTHWEST REGIONAL EDUCATION COOPERATIVE NO. 2
NORTHWEST REGIONAL EDUCATION COOPERATIVE NO. 2 ANNUAL FINANCIAL REPORT AND SUPPLEMENTAL INFORMATION YEAR ENDED JUNE 30, 2018 WITH REPORT OF CERTIFIED PUBLIC ACCOUNTANTS THIS PAGE INTENTIONALLY LEFT BLANK
More informationGovernmental Update. GASB Statements 5/15/2018 RACHEL WALLEN, CPA.CFE RACHEL SQUIBB, CPA GASB 75. June 15,
Governmental Update RACHEL WALLEN, CPA.CFE RACHEL SQUIBB, CPA GASB Statements GASB Statement Number Description Effective for Fiscal Years / Reporting Periods Beginning After Effective Fiscal Year for
More informationPresented by: Frank Crawford, CPA Chris Pembrook, CPA, MBA, CGAP, CRFAC Crawford & Associates, P.C.
Presented by: Frank Crawford, CPA Chris Pembrook, CPA, MBA, CGAP, CRFAC Crawford & Associates, P.C. www.crawfordcpas.com chris@crawfordcpas.com frank@crawfordcpas.com @fcrawfordcpa (twitter) 1 To add some
More informationUpdate. Governmental Accounting and Auditing Update
Update Governmental Accounting and Auditing Update The views expressed in this presentation are those of Mr. Bean. Official positions of the GASB are reached only after extensive due process and deliberations.
More informationGASB Update. Rob Churchman, Partner. April 9, 2013
GASB Update Rob Churchman, Partner April 9, 2013 Agenda GASB 60: Service Concession Arrangements GASB 61: The Financial Reporting Entity GASB 62 & 66: Pre-1989 FASB/AICPA Pronouncements & Technical Corrections
More informationGASB Update. South Carolina Association of CPAs Fall Fest November 16, 2018 Columbia, SC
GASB Update Life Changed in June 1999. What Happened in June 1999? It Was 403 Pages of Good Stuff. That Was 56 GASB s Ago And It Was GASB 34. Jack Says That s CRAZY!!! 3 GASB s per Year!! June 30, 2018
More information2015 Annual Governmental GAAP Update. Government Finance Officers Association November 5, 2015 & December 3, 2015
2015 Annual Governmental GAAP Update Government Finance Officers Association November 5, 2015 & December 3, 2015 1 Program Overview 2 Fair Value Measurement and Application (GASB 72) Definition of fair
More informationGovernmental GAAP Edition. Warren Ruppel
Governmental GAAP 2017 Edition Warren Ruppel Chapter 1 New Developments... 1 Introduction... 1 Recently Issued GASB Statements and Their Effective Dates... 1 Exposure Drafts... 2 Exposure Drafts Implementation
More informationGASB Update. August 2018
GASB Update August 2018 Agenda GASB 75 OPEB GASB 84 Fiduciary Activities GASB 85 Omnibus 2017 GASB 87 Leases GASB 88 Certain Disclosures Related to Debt GASB 89 Accounting for Interest Cost Incurred Before
More information2013 GASB Update. WVDE Office of School Finance Summer Conference. Agenda. GASB Statement No. 65. Items Previously Reported as Assets and Liabilities
2013 GASB Update WVDE Office of School Finance Summer Conference Presented by Gregory S. Allison, CPA UNC School of Government Agenda GASB Update Items Previously Reported as Assets and Liabilities (GASB
More informationBARSTOW COMMUNITY COLLEGE DISTRICT
BARSTOW COMMUNITY COLLEGE DISTRICT San Bernardino County Barstow, California Report on Audit Barstow Community College District TABLE OF CONTENTS FINANCIAL SECTION STATEMENT OF NET POSITION...9 STATEMENT
More informationGASB Update 2015 GFOAA Annual Conference Wesley A. Galloway, Project Manager Governmental Accounting Standards Board
GASB Update 2015 GFOAA Annual Conference Wesley A. Galloway, Project Manager Governmental Accounting Standards Board The views expressed in this presentation are those of [Mr./Ms. last name]. Official
More informationOctober 10, Charles Tegen
GASB UPDATE Financial Reporting for Public Higher Education October 10, 2016 Charles Tegen ctegen@clemson.edu Agenda GASB and GASAC GASB Terms and Communication GASB Activities Newest Standards Exposure
More information2016 Governmental GAAP Update
2016 Governmental GAAP Update January 27, 2016 Webinar Presented in association with Presented by: Stephen W. Blann, CPA, CGFM, CGMA Director of Governmental Audit Quality Rehmann 2 Session Outline Newly
More informationGASB Update. Louisiana Association of School Business Officials March 19, 2015
GASB Update Louisiana Association of School Business Officials March 19, 2015 GAO Green Book Out-of-date (last issued in November 1999) Desire to harmonize Green Book with the updated COSO framework Retains
More informationCUBA INDEPENDENT SCHOOL DISTRICT NO. 62
CUBA INDEPENDENT SCHOOL DISTRICT NO. 62 FINANCIAL ANNUAL REPORT AND SUPPLEMENTAL INFORMATION YEAR ENDED JUNE 30, 2017 WITH REPORT OF CERTIFIED PUBLIC ACCOUNTANTS THIS PAGE INTENTIONALLY LEFT BLANK INTRODUCTORY
More informationBasic Financial Statements and Report of Independent Certified Public Accountants City of Dallas, Texas Dallas Water Utilities (An Enterprise Fund of
Basic Financial Statements and Report of Independent Certified Public Accountants City of Dallas, Texas September 30, 2016 FINANCIAL STATEMENTS For Fiscal Year Ended September 30, 2016 TABLE OF CONTENTS
More informationIllinois Community College Chief Financial Officers Spring 2016 Conference GASB Update
Illinois Community College Chief Financial Officers Spring 2016 Conference GASB Update Frederick G. Lantz, CPA Partner-in-Charge, Government Services Sikich LLP 1415 West Diehl Road, Suite 400 Naperville,
More informationGovernmental Accounting Standards Board (GASB) Updates. Summary of GASB Updates
Governmental Accounting Standards Board (GASB) Updates Effective Dates Recently Issued GASB Standards June 30, 2013 GASB Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements*
More informationAccounting and Financial Reporting for Certain Investments and for External Investment Pools
Chapter 6 CHAPTER 6 Accounting and Financial Reporting for Certain Investments and for External Investment Pools Primary Pronouncements: GASB Statement 3, GASB Statement 31 Primary Codification Section
More informationMAKING SENSE OF DEFERRED INFLOWS AND OUTFLOWS OF RESOURCES
MAKING SENSE OF DEFERRED INFLOWS AND OUTFLOWS OF RESOURCES Presented by: Beila Sherman, CPA Director November 4, 2015 marcumllp.com Objectives of This Session This session will address why the Board established:
More informationGovernmental GAAP Edition. Warren Ruppel
Governmental GAAP 2016 Edition Warren Ruppel Chapter 1 New Developments... 1 Introduction... 1 Recently Issued GASB Statements and Their Effective Dates... 1 Exposure Drafts... 1 Exposure Draft Implementation
More informationGASB Update: Prepare Now to Implement Successfully
GASB Update: Prepare Now to Implement Successfully January 13, 2017 The webinar will begin at 12:30 pm CT. Tara Laughlin, CPA, CGFM Senior Manager, Assurance Services Administration If you need CPE credit,
More informationGovernment Combinations and Disposals of Government Operations
What s Next?! Government Combinations and Disposals of Government Operations Why issue GASB 69? Effective for periods beginning after December 15, 2015, applied on a prospective basis. Early adoption
More informationGASB & AUDIT UPDATE NOVEMBER 2018 NEWLY ELECTED OFFICIALS TRAINING
GASB & AUDIT UPDATE NOVEMBER 2018 NEWLY ELECTED OFFICIALS TRAINING BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee,
More informationOmnibus 201X. September 13, 2016 Comments Due: November 23, Proposed Statement of the Governmental Accounting Standards Board
September 13, 2016 Comments Due: November 23, 2016 Proposed Statement of the Governmental Accounting Standards Board Omnibus 201X This Exposure Draft of a proposed Statement of Governmental Accounting
More informationGASB S RECENTLY ISSUED & CURRENTLY EFFECTIVE STANDARDS
GASB S RECENTLY ISSUED & CURRENTLY EFFECTIVE STANDARDS Alan D. A.J. Bowers, Jr., CPA Senior Manager RPC CPAs + Consultants, LLP September 15, 2016 AICPA Governmental Accounting and Auditing Update GASB
More informationGovernment Accounting Standards Board Update. GASB 65 Through GASB 70: How Do These Statements Affect Public Ports in Washington?
Government Accounting Standards Board Update GASB 65 Through GASB 70: How Do These Statements Affect Public Ports in Washington? Introduction FOX & COMPANY CPAs, LLC George@cpafox.net (360) 597-0400 GASB:
More informationOklahoma Law Enforcement Retirement Plan Administered by Oklahoma Law Enforcement Retirement System Financial Statements
Oklahoma Law Enforcement Retirement Plan Oklahoma Law Enforcement Retirement System Financial Statements June 30, 2017 and 2016 (With Independent Auditors Report Thereon) FINANCIAL STATEMENTS Table of
More informationALTAMONT CORRIDOR EXPRESS MEASURE BB FUND
Independent Auditors Report, Financial Statements, Supplementary Information and Other Reports For the Year Ended June 30, 2017 FOR THE YEAR ENDED JUNE 30, 2017 TABLE OF CONTENTS Page(s) Independent Auditors
More informationFinancial Statements, Supplementary Information and Report of Independent Certified Public Accountants
Financial Statements, Supplementary Information and Report of Independent Certified Public Accountants Associated Students of San Francisco State University (a California State University Auxiliary Organization)
More informationYEO & YEO CPAs & BUSINESS CONSULTANTS
Financial Statements June 30, 2018 YEO & YEO CPAs & BUSINESS CONSULTANTS Table of Contents Section Page 1 Members of the Board of Education and Administration 1 1 2 Independent Auditors Report 2 1 3 Management
More informationAgenda / Learning Objectives
Audit and Accounting Update: Navigating Uncharted Waters Tyler Bernier, CPA, CHFP August 18, 2016 Agenda / Learning Objectives Understand significant FASB and GASB Standards changes Consider the effects
More informationSACRAMENTO EMPLOYMENT AND TRAINING AGENCY INDEPENDENT AUDITORS REPORT, FINANCIAL STATEMENTS AND SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 30, 2017
SACRAMENTO EMPLOYMENT AND TRAINING AGENCY INDEPENDENT AUDITORS REPORT, FINANCIAL STATEMENTS AND SINGLE AUDIT REPORT FINANCIAL STATEMENTS AND SINGLE AUDIT REPORT TABLE OF CONTENTS FINANCIAL SECTION PAGE
More informationCity of Chicago Department of Water Management Water Fund Comprehensive Annual Financial Report For the Years Ended December 31, 2016 and 2015
City of Chicago Department of Water Management Water Fund Comprehensive Annual Financial Report For the Years Ended December 31, 2016 and 2015 Rahm Emanuel, Mayor Carole L. Brown, Chief Financial Officer
More informationINDEPENDENT AUDITOR'S REPORT
Board of Trustees Lake Tahoe Community College District South Lake Tahoe, California Report on the Financial Statements INDEPENDENT AUDITOR'S REPORT We have audited the accompanying financial statements
More informationLAKEPORT FIRE PROTECTION DISTRICT, CALIFORNIA
LAKEPORT FIRE PROTECTION DISTRICT, CALIFORNIA FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITOR S REPORT FOR THE YEAR ENDED JUNE 30, 2018 THIS PAGE INTENTIONALLY LEFT BLANK Annual Financial Report
More informationFund Accounting Principles and Practices. Our Very Ambitious Agenda
Fund Accounting Principles and Practices Presented by Gregory S. Allison, CPA UNC School of Government K. Lee Carter, Jr., CPA Capital Management of the Carolinas Our Very Ambitious Agenda Overview of
More informationCalifornia Society of Municipal Finance Officers
California Society of Municipal Finance Officers GASB Exposed Due Process Documents and Current Deliberations The views expressed in this presentation are those of Mr. Bean. Official positions of the GASB
More informationRICHARD ALLEN PREPARATORY CHARTER SCHOOL BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, DRAFT - for discussion purposes only
RICHARD ALLEN PREPARATORY CHARTER SCHOOL BASIC FINANCIAL STATEMENTS YEAR ENDED YEAR ENDED TABLE OF CONTENTS Page INDEPENDENT AUDITOR'S REPORT 1-3 MANAGEMENT'S DISCUSSION AND ANALYSIS 4-7 BASIC FINANCIAL
More informationNORTH SAN JUAN FIRE PROTECTION DISTRICT, CALIFORNIA
NORTH SAN JUAN FIRE PROTECTION DISTRICT, CALIFORNIA FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITOR S REPORT FOR THE YEAR ENDED JUNE 30, 2018 THIS PAGE INTENTIONALLY LEFT BLANK Annual Financial
More informationThe opinions expressed in this presentation are those of Mrs. Parker. Official positions of the GASB are established only after extensive public due
GASB Update Lisa R. Parker, CPA Project Manager, Governmental Accounting Standards Board Florida Institute of CPA s September 21, 2012 Ft. Lauderdale, Florida The opinions expressed in this presentation
More informationGovernment Finance Officers Association November 7, 2013
Government Finance Officers Association November 7, 2013 1 Final GASB pronouncements Government Combinations and Disposals of Government Operations GASB Statement No. 69 Accounting and Financial Reporting
More informationFinancial Statements, Supplementary Information and Report of Independent Certified Public Accountants
Financial Statements, Supplementary Information and Report of Independent Certified Public Accountants Associated Students of San Francisco State University (a California State University Auxiliary Organization)
More informationNew Issues of Old Friends. GASB Update. The Year in Review Final Documents. Codification Original Pronouncements Comprehensive Implementation Guide
GASB Update The views expressed in this presentation are those of Dr. Smith. Official positions of the GASB are determined only after extensive due process and deliberation. The Year in Review Final Documents
More informationState Association of County Auditors GASB Update
State Association of County Auditors GASB Update The views expressed in this presentation are those of Mr. Sundstrom. Official positions of the GASB are determined only after extensive due process and
More informationAccounting Update: GASB/FASB/AICPA/COSO
1 Accounting Update: GASB/FASB/AICPA/COSO American Association of Port Authorities April 17, 2012 2 Section 1 GASB/ Nonprofit Update 3 GASB Standards-Old standards GASB Statement 54 Fund Balance Reporting
More informationImplementation Guide No. 201X-Y, Implementation Guidance Update 201X
November 16, 2016 Comments Due: January 31, 2017 Proposed Implementation Guide of the Governmental Accounting Standards Board Implementation Guide No. 201X-Y, Implementation Guidance Update 201X This Exposure
More informationOklahoma Capital Investment Board
Oklahoma Capital Investment Board Financial Statements June 30, 2018 and 2017 (With Independent Auditors Report Thereon) FINANCIAL STATEMENTS Table of Contents Independent Auditors Report... 1 Management
More informationASSOCIATED STUDENTS, INC. CALIFORNIA POLYTECHNIC STATE UNIVERSITY, SAN LUIS OBISPO
CALIFORNIA POLYTECHNIC STATE UNIVERSITY, SAN LUIS OBISPO Financial Statements and Supplementary Information for the Year Ended June 30, 2016 and Independent Auditors Report TABLE OF CONTENTS Page FINANCIAL
More informationJerry is an Assistant Director for the State of Tennessee, Comptroller of the Treasury, Division of Local Government Audit.
1 Jerry is an Assistant Director for the State of Tennessee, Comptroller of the Treasury, Division of Local Government Audit. The division has statutory responsibility for audits of approximately 1800
More information