Government Finance Officers Association of the United States and Canada and Government Accounting Research Foundation of the Government Finance Officers Association Consolidating Financial Statements Years Ended March 31, 2013 and 2012 The report accompanying these financial statements was issued by BDO USA, LLP, a Delaware limited liability partnership and the U.S. member of BDO International Limited, a UK company limited by guarantee.
Government of the United States and Canada and Government Accounting Research Foundation of the Government Consolidating Financial Statements Years Ended March 31, 2013 and 2012
Contents Independent Auditor s Report 3-4 Consolidating Financial Statements Consolidating Statements of Financial Position as of March 31, 2013 and 2012 5 Consolidating Statements of Activities for the Years Ended March 31, 2013 and 2012 6 Consolidating Statements of Cash Flows for the Years Ended March 31, 2013 and 2012 7 Notes to Consolidating Financial Statements 8-16 2
Independent Auditor s Report Executive Board Government of the United States and Canada and Government Accounting Research Foundation of the Government Finance Officers Association Chicago, Illinois We have audited the accompanying consolidating financial statements of Government Finance Officers Association of the United States and Canada and Government Accounting Research Foundation of the Government (collectively the Organization ), which comprise the consolidating statements of financial position as of March 31, 2013 and 2012, and the related consolidating statements of activities and cash flows for the years then ended, and the related notes to the consolidating financial statements. Management s Responsibility for the Consolidating Financial Statements Management is responsible for the preparation and fair presentation of these consolidating financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidating financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these consolidating financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidating financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidating financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the consolidating financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the consolidating financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidating financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. 3
Opinion In our opinion, the consolidating financial statements referred to above present fairly, in all material respects, the financial position of the Organization as of March 31, 2013 and 2012, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matter The consolidating information related to the Government of the United States and Canada for fiscal 2013 is presented for purposes of additional analysis of the consolidated financial statements rather than to present the financial position, results of operations, and cash flows of Government of the United States and Canada Finance Officers Association, and is not a required part of the fiscal 2013 consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the fiscal 2013 consolidated financial statements. The consolidating information has been subjected to the auditing procedures applied in the audits of the fiscal 2013 consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the fiscal 2013 consolidated financial statements or to the fiscal 2013 consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the consolidating information is fairly stated in all material respects in relation to the fiscal 2013 consolidated financial statements as a whole. Chicago, Illinois September 26, 2013 BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. 4
Consolidating Financial Statements
Consolidating Statements of Financial Position March 31, GFOA Foundation 2013 2012 Assets Current Assets Cash and cash equivalents $ 57 $ 6 $ 63 $ 379 Investments (Note 3) 24,060 394 24,454 20,611 Accounts receivable (net of allowance for doubtful accounts of $20 for 2013 and 2012, respectively) 752-752 945 Accrued interest receivable 17 1 18 22 Publication inventory 588-588 864 Prepaid expenses and other current assets 430-430 649 Total Current Assets 25,904 401 26,305 23,470 Property and Equipment, Net 812-812 453 Total Assets $ 26,716 $ 401 $ 27,117 $ 23,923 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 456 $ - $ 456 $ 233 Accrued expenses 1,776-1,776 1,584 Deferred revenue 4,448 38 4,486 4,224 Deferred rent 611-611 559 Total Current Liabilities 7,291 38 7,329 6,600 Commitments (Note 7) Net Assets - Unrestricted Operating fund 16,664-16,664 14,600 Contingency reserve (Note 4) 1,363-1,363 1,363 Research reserve (Note 4) 709-709 626 Scholarship reserve (Note 4) 295-295 276 GFOA Foundation - 363 363 324 Total Net Assets - Unrestricted 19,031 363 19,394 17,189 Net Assets - Temporarily Restricted Scholarship and grants (Note 5) 394-394 134 Total Net Assets 19,425 363 19,788 17,323 Total Liabilities and Stockholders' Equity $ 26,716 $ 401 $ 27,117 $ 23,923 Totals See accompanying notes to consolidating financial statements. 5
Consolidating Statements of Activities Year ended March 31, GFOA Foundation 2013 2012 Unrestricted Net Assets Net Operating Revenue Membership dues $ 3,431 $ - $ 3,431 $ 3,384 Fees and charges: Training and conference 4,091-4,091 3,816 Award programs 2,982-2,982 2,857 Publications and subscriptions 1,894 79 1,973 507 Consulting 1,886-1,886 1,498 Total fees and charges 10,853 79 10,932 8,678 Contributions - - - 75 All other sources 551-551 658 Net assets released from restrictions 22-22 15 Total net operating revenue 14,857 79 14,936 12,810 Program Expenses Salaries and wages 4,134 31 4,165 3,771 Employee benefits 1,223 7 1,230 1,059 Office expenses 2,257 9 2,266 1,527 Occupancy and equipment expenses 1,057-1,057 948 Travel 412 3 415 342 Training and conference 3,133-3,133 2,189 Depreciation and amortization 137-137 70 Professional fees 284-284 91 Subcontractors 245-245 202 Contributions 38-38 280 Other operating expenses 148-148 81 Total program expenses 13,068 50 13,118 10,560 Support Expenses Salaries and wages 717-717 716 Employee benefits 192-192 169 Office expenses 160-160 125 Occupancy and equipment expenses 5-5 7 Travel 22-22 22 Depreciation and amortization 20-20 17 Professional fees 98-98 79 Other operating expenses 61-61 47 Total support expenses 1,275-1,275 1,182 Total program and support expenses 14,343 50 14,393 11,742 Net Operating Revenue Greater Than Expenses 514 29 543 1,068 Interest/dividend income 424 11 435 376 Appreciation in fair value of investments 1,228 (1) 1,227 758 Increase in Unrestricted Net Assets 2,166 39 2,205 2,202 Increase in Temporarily Restricted Net Assets (Note 5) 260-260 10 Net Increase in Net Assets 2,426 39 2,465 2,212 Net Assets, at beginning of year 16,999 324 17,323 15,111 Net Assets, at end of year $ 19,425 $ 363 $ 19,788 $ 17,323 Totals See accompanying notes to consolidating financial statements. 6
Consolidating Statements of Cash Flows Year ended March 31, GFOA Foundation 2013 2012 Totals Cash Flows From Operating Activities Changes in net assets $ 2,426 $ 39 $ 2,465 $ 2,212 Adjustments to reconcile changes in net assets to net cash provided by (used in) operating activities: Net (appreciation) depreciation in fair value of investments (1,228) 1 (1,227) (765) Depreciation and amortization 157-157 81 Change in current assets and liabilities Receivables 197-197 (293) Publication inventory 276-276 (210) Prepaid expenses and other current assets 219-219 (82) Accounts payable and accrued expenses 453 (38) 415 206 Deferred revenue 266 (4) 262 254 Deferred rent 52-52 356 Net cash provided by (used in) operating activities 2,818 (2) 2,816 1,759 Cash Flows From Investing Activities Purchase of furniture, fixtures and equipment (516) - (516) (474) Maturity of investments 2,799 86 2,885 3,603 Purchase of investments (5,273) (228) (5,501) (4,778) Net cash used in investing activities (2,990) (142) (3,132) (1,649) Net (Decrease) Increase in Cash and Cash Equivalents (172) (144) (316) 110 Cash and Cash Equivalents, at beginning of year 229 150 379 269 Cash and Cash Equivalents, at end of year $ 57 $ 6 $ 63 $ 379 See accompanying notes to consolidating financial statements. 7
1. Nature of Operations Notes to Consolidating Financial Statements The consolidating financial statements present data for both the Government Finance Officers Association of the United States and Canada ( GFOA ) and the Government Accounting Research Foundation of the Government ( GFOA Foundation ) (collectively, the Organization ). Material intercompany accounts and transactions have been eliminated in consolidation. The GFOA is the professional association of government finance officers with approximately 17,800 members and serves the government finance profession. GFOA was founded in 1906 and is exempt from the payment of income taxes under Section 501(c)(3) of the Internal Revenue Code. GFOA members are state and local government officials and other finance professionals. GFOA s purpose is to enhance and promote the professional management of governments for the public benefit by identifying and developing financial policies and practices and promoting them through education, training and leadership. Revenue is derived primarily from membership dues, training and conference, award programs, publication sales, and consulting fees. The GFOA Foundation is also a not-for-profit corporation and is exempt from the payment of income taxes under Section 501(c)(3) of the Internal Revenue Code. The purpose of the GFOA Foundation is to provide financial support for efforts to encourage high quality financial reporting by state and local governments. Currently, the GFOA Foundation is helping to fund the establishment of a professional recognition program designed to encourage smaller governments that are unable to prepare financial statements in accordance with accounting principles generally accepted in the United States of America ( GAAP ) to prepare high quality financial reports using the modified cash basis of accounting. The GFOA Foundation s revenue is derived from the net revenue resulting from sales of the GAAFR Review. 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidating financial statements include the accounts of the GFOA and the GFOA Foundation which are maintained on the accrual basis of accounting in conformity with accounting principles applicable to nonprofit organizations. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Cash and Cash Equivalents Highly liquid investments with an original maturity date of three months or less are considered cash equivalents. 8
Cash and cash equivalents are comprised of: Notes to Consolidating Financial Statements March 31, 2013 2012 Commercial bank money market accounts $ 38 $ 193 Cash on deposit 25 186 Concentration of Risk 9 $ 63 $ 379 The Organization maintains cash and cash equivalents in accounts at financial institutions which, at times, may exceed the amount insured by the Federal Deposit Insurance Corporation. Management believes that the Organization is not exposed to any significant credit risk on cash and the Organization has not experienced any losses in such accounts. Investments and Fair Value Measurements Investments are recorded at their fair value. Changes in fair value are recorded as realized and unrealized gains (losses) in the Consolidating Statements of Activities. The Organization follows the requirements of Accounting Standards Codification ( ASC ) 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. See Note 3 for further disclosures. Adoption of New Accounting Standard In May 2011, the FASB issued Accounting Standards Update ( ASU ) 2011-04, Fair Value Measurement (Topic 820), Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements particularly for Level 3 fair value measurements. ASU 2011-04 is effective for the Organization for the year ended March 31, 2013. The adoption by the Organization of this standard had minimal impact on the financial statement disclosures. Receivables Receivables are recorded for the annual conference, contracts, publication sales and training and are stated at the amount management expects to collect from outstanding balances. At March 31, 2013 and 2012, receivables consisted primarily of annual conference, training receivables and contracts, which include accrued receivables for work completed but not yet billed. An allowance for doubtful accounts is recorded based upon specific identification of uncollectible accounts and historical collection experience. Publication Inventory Inventories of publications offered for sale are valued at the lower of cost or market value using the first-in, first-out method to determine cost, including all production costs. Management has determined that no inventory valuation allowance is necessary as of March 31, 2013 and 2012, respectively.
Property and Equipment Notes to Consolidating Financial Statements Property and equipment are recorded at cost. All acquisitions of property and equipment in excess of five hundred dollars and all expenditures for improvements and betterments that materially prolong the useful lives of assets are capitalized. Property and equipment are comprised of: March 31, 2013 2012 Equipment $ 1,477 $ 1,194 Furniture and fixtures 589 428 Leasehold improvements 380 336 2,446 1,958 Less accumulated depreciation and amortization (1,634) (1,505) $ 812 $ 453 Depreciation of all property and equipment is charged as expense against operations. Depreciation is computed on the straight-line basis over the estimated useful life of the asset. Estimated useful life for furniture and fixtures is five years and equipment is three years. Leasehold improvements are depreciated over the shorter of the associated lease term or the estimated useful life of the asset of ten years. Revenue Recognition Revenue is recognized as earned. Membership Dues Annual membership dues are assessed annually and are recognized as revenue ratably over the year. Dues collected prior to year-end that relate to a subsequent year are recorded as deferred revenue. Fees and Charges Fees for training, conferences, award programs and consulting are recorded as revenue in the year the event or service takes place. Billings issued and amounts collected prior to year-end that relate to an event to be held in a subsequent year are also recorded as deferred revenue. Training and conference revenues include registration fees, exhibit fees, mailing list rental, and event tickets. Training and conference expenses include facility rentals, speakers' fees and expenses, printed materials, postage, audio/visual services and food service. Rental Expense Rental expense is recognized for financial reporting purposes on the straight-line basis over the term of a certain lease. At March 31, 2013 and 2012, deferred rent represents the cumulative amount by which rental expense recognized exceeds rentals paid. 10
Net Assets Notes to Consolidating Financial Statements Net assets are classified for financial statement purposes as being unrestricted, temporarily restricted or permanently restricted based on the existence or absence of donor-imposed restrictions. The Organization currently does not hold any permanently restricted net assets at March 31, 2013 and 2012. Temporarily Restricted Net Assets Temporarily restricted net assets are subjected to donor-imposed restrictions that are to be satisfied by GFOA s actions or passage of time. Temporarily restricted net assets are reclassified to unrestricted net assets when the restrictions are met. See Note 5. Income Taxes The GFOA and GFOA Foundation are tax-exempt organizations, respectively, under Section 501(c)(3) of the Internal Revenue Code. Tax positions for open tax years were reviewed and it was determined that no provision for uncertain tax positions is required. The GFOA and the GFOA Foundation are currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years going back to 2009. 3. Fair Value Measurements ASC 820, Fair Value Measurements and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the most advantageous market for the asset or liability in an orderly transaction. Fair value measurement is based on a hierarchy of observable or unobservable inputs. The standard describes three levels of inputs that may be used to measure fair value. Level 1 - Quoted Prices in Active Markets for Identical Assets - Inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date; Level 2 - Significant Other Observable Inputs - Inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and the fair value can be determined through the use of models or other valuation methodologies; and Level 3 - Significant Unobservable Inputs - Inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity of the asset and liability and the reporting entity makes estimates and assumptions relating to the pricing of the asset or liability including assumptions regarding risk. For the Level 3 investment, fair value is estimated by the Organization. The investment interest held by the Organization in the TIAA Real Estate Account is valued based on the Organization's net asset value ("NAV") in the investment. The Organization uses the NAV as a practical expedient, without further adjustment, unless it is probable that the investment will be sold at a value significantly different than the NAV. 11
Notes to Consolidating Financial Statements The Organization s investments have fair values determined by quoted market prices, directly observable prices in active markets for identical assets and unobservable market assumptions (Level 1, 2 and 3 Classification). For the years ended March 31, 2013 and 2012, total investment return of $1,662 and $1,134, respectively, consisted of investment income of $435 and $376, and a net appreciation in fair value of investments of $1,227 and $758, respectively. The following tables disclose the fair value hierarchy of the Organization s investment assets at fair value as of March 31, 2013 and 2012. As required by ASC 820-10, investments are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of March 31, 2013 Total Level 1 Level 2 Level 3 Fair Value Vanguard Balanced Index Fund $ 18,291 $ - $ - $ 18,291 Government Bonds - 2,868-2,868 Corporate Bonds - 1,434-1,434 US Savings Bonds 620 - - 620 18,911 4,302-23,213 457 Plan(b) investments (See Note 7) CREF Stock Account - 570-570 CREF Global Equities Account - 42-42 CREF Growth Account - 34-34 CREF Equity Index Account - 117-117 CREF Social Choice Account - 29-29 CREF Bond Account - 16-16 CREF Money Market Account - 4-4 TIAA Traditional Guaranteed Annuity - 301-301 TIAA Access Intl Equity T3 Account - 26-26 TIAA Access Intl Equity Idx T3 Account - 5-5 TIAA Access Real Est Secs T3 Account - 5-5 TIAA Real Estate Account - - 92 92-1,149 92 1,241 $ 18,911 $ 5,451 $ 92 $ 24,454 As of March 31, 2012 Total Level 1 Level 2 Level 3 Fair Value Vanguard Balanced Index Fund $ 15,176 $ - $ - $ 15,176 Government Bonds - 2,123-2,123 Corporate Bonds - 1,388-1,388 US Savings Bonds 590 - - 590 US Treasury Note - 301-301 15,766 3,812-19,578 457 Plan(b) investments (See Note 7) CREF Stock Account - 465-465 CREF Global Equities Account - 49-49 CREF Growth Account - 29-29 CREF Equity Index Account - 93-93 CREF Social Choice Account - 24-24 CREF Bond Account - 13-13 TIAA Traditional Guaranteed Annuity - 289-289 TIAA Real Estate Account - - 71 71-962 71 1,033 $ 15,766 $ 4,774 $ 71 $ 20,611 12
Notes to Consolidating Financial Statements The table below sets forth a summary of changes in the fair value of the Organization s Level 3 investment assets for the years ended March 31, 2013 and 2012. Fair value measurements using significant unobservable inputs (Level 3): Balance as of April 1, 2011 $ 55 Realized gains (losses) - Unrealized gains 7 Purchases 9 Balance as of March 31, 2012 71 Realized gains (losses) - Unrealized gains 12 Purchases 9 Balance as of March 31, 2013 $ 92 There were no settlements or issuances for Level 3 investments for the years ended March 31, 2013 and 2012, respectively. 4. Reserve Funds The GFOA Executive Board has designated unrestricted assets for special purposes and activities as follows: Contingency The GFOA Executive Board established a contingency reserve in 1987. The balance of this reserve at March 31, 2013 and 2012 is $1,363. A portion of this reserve can be used for advances and contingencies related to the work of future Local Conference Committees that help prepare for the GFOA s annual conference. During 2013 and 2012, there was no activity in the contingency reserve. The portion of this reserve designated for the annual conference at March 31, 2013 and 2012 is $750. Research The research reserve has been designated by the GFOA Executive Board to be used for GFOA sponsored research projects. The research reserve balance at March 31, 2013 and 2012 is $709 and $626, respectively. During 2013, GFOA transferred $250 from the operating fund to the research reserve and $167 was utilized for research projects. During 2012, GFOA transferred $250 from the operating fund to the research reserve and $179 was utilized for research projects. Scholarship The GFOA Executive Board adopted a policy in 2005 whereby any portion of the contingency reserve designated for the annual conference in excess of $750 at the end of each fiscal year be transferred to a separate scholarship reserve to support and expand the GFOA scholarships. The scholarship reserve balance at March 31, 2013 and 2012 is $295 and $276, respectively. During 2013, investment income of $28 was allocated to the scholarship reserve and $10 was utilized for 13
Notes to Consolidating Financial Statements scholarships. During 2012, investment income of $21 was allocated to the scholarship reserve and $10 was utilized for scholarships. 5. Temporarily Restricted Net Assets Temporarily restricted net assets represent resources from contributions and grants that are subject to spending restrictions imposed by the donor. During fiscal 2013, GFOA was awarded a $750 Bill and Melinda Gates Project grant. The two-year project commenced on March 1, 2013 and will align with GFOA s project to encourage governments to identify and implement best practices with their finances including performance management and budgeting. The grant is subject to certain pre-designated milestones to determine continued funding under the grant. GFOA received funds of $264 related to this grant as of March 31, 2013. Amounts restricted to support GFOA scholarships 2013 2012 Balance at April 1 $ 134 $ 124 Increases Private contributions 5 15 Investment income 13 10 18 25 Decreases net assets released from restrictions Daniel B. Goldberg Scholarship (10) (10) Minorities in Government Finance Scholarship (5) (5) (15) (15 ) Total scholarships at March 31 137 134 Amounts restricted to support GFOA research grants Balance at April 1 - - Increases Private contributions 264-264 - Decreases Enhancing Budget Excellence Awards through Use of Alignment Best Practices" Bill and Melinda Gates Foundation (7) - (7) - Total research grants at March 31 257 - Total at March 31 $ 394 $ 134 6. Retirement Plans GFOA participates in two separate defined contribution retirement plans administered by the Teachers Insurance and Annuity Association/College Retirement Equities Fund ( TIAA/CREF ), a 403 (b) plan and a 457 (b) plan further described below. All full-time employees have the option 14
Notes to Consolidating Financial Statements to participate after one year of continuous service in GFOA s 403(b) plan. Participating employees contribute 5% of gross salary and GFOA matches that contribution with 10% of gross salary. All funds are immediately vested. Pension expense in 2013 and 2012 for this plan was $419 and $412, respectively. Employees may also make voluntary contributions to the TIAA/CREF supplemental retirement annuity program. GFOA makes no contributions related to voluntary contributions by employees in this program. In addition, effective January 1, 2003, the chief executive officer and Center directors, as defined, also have the option of participating in a 457(b) plan. GFOA matches individual employee contributions on a dollar-for-dollar basis. Combined GFOA/employee contributions are not to exceed the Internal Revenue Service tax-deferred annual contribution limit ($17 at December 31, 2012). Section 457(b) plans for tax-exempt employers must be unfunded and all plan assets remain part of GFOA s general assets and, as such, are subject to the claims of its creditors. The related liability is included in accrued expenses. The liability is equal to plan assets totaling $1,241 and $1,033 as of March 31, 2013 and 2012, respectively (see Note 3). Related pension expense in 2013 and 2012 for this plan was $53 and $50, respectively. 7. Commitments Operating Leases GFOA has two operating leases for office space. As of March 31, 2013, contractual agreements require the following minimum fiscal year rental payments, exclusive of any future rent escalation charges for real estate taxes and operating expenses: Total 2014 $ 468 2015 482 2016 424 2017 421 2018 433 Thereafter 2,203 $ 4,431 Office rental expense totaled $776 and $744 for the years ended March 31, 2013 and 2012, respectively. The Chicago and Washington, D.C. leases terminate on September 30, 2022 and May 31, 2015, respectively. The Chicago lease has a five-year renewal option. Post Retirement Health Insurance GFOA offers retirement health insurance to those employees with a minimum of thirty years of full-time employment at GFOA and who have attained the age of sixty. Benefits are provided to the qualified employee and their spouse for a maximum of five years until the age of sixty-five. At March 31, 2013, GFOA has determined that the estimated cost of this benefit is immaterial based upon their internal review of its census; however, GFOA will continue to evaluate the significance of this obligation in the future. To date, no employees have participated in this program. 15
8. Subsequent Events Notes to Consolidating Financial Statements The Organization has evaluated subsequent events occurring through September 26, 2013, the date that the financial statements were available to be issued, for events requiring recording or disclosure in the financial statements. No material subsequent events have occurred through September 26, 2013 that required recognition or disclosure in these financial statements. 16