Presented by Gregory S. Allison Institute of Government

Transcription

1 Presented by Gregory S. Allison Institute of Government

2 Governmental Accounting Standards Board Primarily responsible for establishing generally accepted accounting principles Where do they come from? Why do we care what they do? How do their requirements fit in with the statutory requirements in NC?

3 Biggest change in governmental GAAP in decades Changes the way governmental financial statements look New and different data are being included in the financial statements for the first time

4 Format of the financial statements Manner in which budgetary data is reported and.. INFRASTRUCTURE REPORTING

5 Normally Stationary, Long-lived Assets Normally Can Be Preserved Longer Than Most Capital Assets Examples: Roads, Streets & Highways, Bridges, Tunnels, Drainage Systems, W&S Systems, Dams, Etc. May Include Depreciable & Non-depreciable Components May Not Include Buildings Except As An Ancillary Part Of A Network

6 Assets of use only to the government Assets that are not subject to loss (we know where they are) Cost vs. benefit of maintaining records to support GAAP reporting on an on-going basis We ve always done it this way.

7 Prospective Reporting For Infrastructure Assets At Implementation (June 30, 2001, 2002 or 2003) Retroactive Reporting Of Major Infrastructure Assets Is Encouraged Phase Phase Phase 3 - Not Required

8 Historical Cost, Estimated Historical Cost, Or Fair Value For Donated Assets Infrastructure Assets Acquired Or Having Major Renovations, Restorations, Or Improvements Starting In Fiscal Years Ending After 6/30/80 Major Infrastructure Assets Only

9 Infrastructure Before Not Required To Be Capitalized (6/30/80) Accumulated Depreciation May Be Based On Weighted Average Acquisition Years Can t Be Used To Offset Debt Standard Costs May Be Used Capitalization Based On Legal Title Or Responsibility For Maintenance

10 Inventories of certain assets Powell Bill maps and records Bridge inspections Engineering surveys Other? How does this tie into the finance side?

11 Network - All Assets That Provide A Particular Type Of Service - May Be Composed Of Many Components - EX: Road System Subsystem Of A Network - All Assets That Make A Similar Portion Or Segment Of A Network - EX: Interstate Highways Both May Include Dissimilar Items - Government Determines Groupings

12 Determination Should Be At Network Or Subsystem Level Cost Or Estimated Cost Of Subsystem >= At Least 5% Of Total General Capital Assets Reported For ; OR Cost Or Estimated Cost Of Network >= At Least 10% Of Total General Capital Assets Reported For

13 5% & 10% Calculations Do Not Include Proprietary & Fiduciary Assets GASB 34 Does Not Specify Whether Cost Or Net Book Value Is Used Infrastructure To Be Capitalized Not Included In Calculation Preliminary Estimates May Be Used

14 Replacing Infrastructure Gains Or Losses Calculated Similar To Other Assets - Exception Composite Method Preservation Costs Are Capitalized If They Extend Useful Life Or Increase Service Capacity Land Is Separately Captioned Residual Values Are Usually Zero

15 Lifing Of Assets Determining Acquisition Date On General Capital Assets Ownership / Value Of Land Under Infrastructure And Right-of-ways

16 Evaluate Existing Capital Assets Records Inventories Of Existing Capital Assets Evaluate Capitalization Thresholds Internal Control Weaknesses Use Of Outside Experts Working With The Independent Auditor Planning Materiality

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