A Seminar in GASB 34, Asset Management & Reporting A Practical Guide to Compliance for Utility and Municipal Managers February 19, 2002

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1 The GASB Resource Guide A Seminar in GASB 34, Asset Management & Reporting A Practical Guide to Compliance for Utility and Municipal Managers February 19, 2002 Organized by The Environmental Finance The University of North Carolina at Chapel Hill 1

2 The GASB Resource guide Introduction In the June of 1999, the Governmental Accounting Standards Board (GASB) issued Statement 34. This statement will apply to all basic financial statements for state and local governments. It is beyond doubt that GASB 34 will have the single largest impact ever on the accounting procedures adopted by state and local governments. The statement becomes effective for the state of North Carolina, and many other states, for the fiscal year ending June 30, As more and more state and local governments are implementing GASB 34, some of the difficulties in implementation are coming to the fore. Some of the successful and not so successful implementations have been documented as case studies. Many of these are published or uploaded on the Internet. The objective this booklet is to provide a quick reference to the resources available on GASB 34, especially on the internet. The material provides links to various discussions, articles, PowerPoint presentations, documented case studies, books and other guides. This guide is intended to assist municipal officials with the implementation of GASB 34. The major sources of information for this booklet are as follows: 1. Relevant North Carolina state agencies 2. Other state agencies and associations 3. Information available on the internet Jeff Hughes Associate Director, efc@unc CB #3330, The University of North Carolina at Chapel Hill Chapel Hill, NC Tel. (919) , Fax (919) Internet : efc@unc.edu 1

3 Table of contents STATE OF NORTH CAROLINA RESOURCES... 1 NORTH CAROLINA OFFICE OF THE STATE CONTROLLER (OSC)... 1 DEPARTMENT OF STATE TREASURER, NORTH CAROLINA... 2 INSTITUTE OF GOVERNMENT, THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL (IOG)... 3 THE ENVIRONMENTAL FINANCE CENTER AT THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL (EFC@UNC)... 4 GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)... 5 OTHER STATE GOVERNMENTS... 6 SOUTH CAROLINA: OFFICE OF THE COMPTROLLER GENERAL... 6 STATE OF FLORIDA: DIVISION OF ACCOUNTING AND AUDITING... 7 STATE OF VIRGINIA: AUDITOR OF PUBLIC ACCOUNTS... 8 PROFESSIONAL ASSOCIATIONS/ NGOS... 9 CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS (CSMFO)... 9 AMERICAN ACCOUNTING ASSOCIATION (GOVERNMENT AND NON-PROFIT SECTION) THE AMERICAN PUBLIC WORKS ASSOCIATION GOVERNMENT FINANCE OFFICERS ASSOCIATION THE NATIONAL ASSOCIATION OF STATE AUDITORS, COMPTROLLERS AND TREASURERS (NASACT) RELEVANT ARTICLES

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5 State of North Carolina resources North Carolina Office of the State Controller (OSC) The State Controller is the State's Chief Financial Officer. The State Controller's Office ensures proper financial reporting and accounting of all state agencies and institutions by providing leadership, guidance, and consulting in all accounting matters. The OSC prescribes policies and procedures based on proven accounting practices and standards, along with a very effective automated accounting system - the North Carolina Accounting System (NCAS) - to support agency and central management requirements. The OSC is also responsible for a comprehensive cash management program, operation of a centralized payroll system serving a majority of state agencies, and the administration of a statewide appropriation and allotment process. Contact Robert Powell, State Controller : NCAS Help desk number : HELP Web address: GASB The web site of the office of the State Controller contains a section dedicated to implementation resources on GASB 34 The website has information on the following topics Background and Information GFOA Technical Bulletin on the New Model PowerPoint Slide Shows o Overview of GASB 34 for State and Local Governments o Overview of GASB 34 for Colleges/Universities o Overview of GASB 33 for State and Local Governments o Overview of GASB 33 for Colleges/Universities Implementation 1

6 Department of State Treasurer, North Carolina (State and Local Government Finance Division) The department of State Treasurer serves as the state's banker and chief investment officer. The State and Local Government Finance division serves the citizens of the State by issuing debt for units of local government and public authorities, monitoring the repayment of their debt, and overseeing the fiscal activities and financial soundness of all local governments and public authorities Contact Richard H. Moore (919) State Treasurer NC Department of State Treasurer 325 North Salisbury st. Raleigh, NC Tel: (919) Fax: (919) Internet: GASB The State Treasurer s web-site has a section dedicated to GASB 34. Here, one can find memos on various issues related to GASB such as general overview of GASB 34, infrastructure and capitalization of fixed assets, data on implementation phases, etc. Website for GASB 34: 2

7 GASB resource guide, Institute of Government, The University of North Carolina at Chapel Hill (IOG) Background The Institute of Government is the largest and most diversified university-based local government training, consulting, and research organization in the United States. Moody s bond-rating service has commended the Institute s rigorous and highly respected certification programs, calling it a university for public officials. Local and state officials in North Carolina have relied on the Institute of Government since 1931 to help them hone the skills needed to conduct public business and to provide expert opinion on difficult issues. Contact Information Institute of Government CB# 3330, The University of North Carolina at Chapel Hill Chapel Hill, NC Tel.: , Fax: Internet: The Institute of Government is a leader in teaching, advising, and consulting for local and state government officials in North Carolina. A focal point of the Institute's work is planning, administering, and teaching in continuing education courses for the state's government officials. Some of the subject areas covered in these courses are Attorneys and Legal Issues, Budgeting, Finance and Accounting, Elected Officials, Health and Social Services, etc. Some of the interesting courses for GASB-34 are: Implementing the new financial reporting model workshop: This is a two day course offered since December The course introduces local government finance officers to the new GASB-34 financial reporting requirements. Accounting and reporting for fixed assets: This is a one day course on a wide range of accounting and reporting issues associated with fixed assets. Special emphasis is placed on the GASB 34 issues. All other accounting and financial reporting courses offered by the IOG have been modified to include GASB 34 requirements. For more details about courses, contact Emmalou Hughey, ; fax ( hughey@iogmail.iog.unc.edu) 3

8 The Environmental Finance Center at The University of North Carolina at Chapel Hill The is dedicated to enhancing the ability of governments to provide environmental services in fair, effective and sustainable ways. provides a bridge between students and faculty in the university who work principally on environmental financing, management and planning tools, and the governments whose job is to use these tools for the public interest. efc@unc is part of the EFC network, which is a university-based program that provides outreach services to the regulated community and small environmental businesses. Contact Jeff Hughes Associate Director Environmental Finance Center at UNC CB 3330, Chapel Hill, NC Tel. (919) , Fax (919) Internet: efc@unc.edu efc@unc has worked on various projects in the area of environmental finance. The project reports are available on the efc website. Some of the interesting projects include the Hydropower relicensing project: opportunities for and obstacles to environmental quality improvements and recreational enhancements on southeastern rivers, Source water protection planning project (Broad river and Second Broad river, Piedmont), The million acres project, etc. ( Database resources efc@unc has compiled a database on financing options for environmental projects in the southeastern US states. The database has been published in a simple html format and is available on the EFC website. Environmental finance database: 4

9 GASB resource guide, Governmental Accounting Standards Board (GASB) The GASB is the independent, not-for-profit organization, formed in 1984.The mission of the Governmental Accounting Standards Board is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports. Contact/ Technical inquiry GASB Home page: The GASB responds to technical inquiries about governmental accounting and financial reporting to promote the uniform application of GAAP and to foster relations with the GASB's constituency. Technical inquiries can be submitted on the website at: Alternatively, you may submit your inquiry on a data input form available from the fax-on-demand department at , extension 14. Data input forms may be mailed to the GASB at 401 Merritt 7, PO Box 5116, Norwalk, CT, or faxed to The web-site of the GASB contains a section dedicated to implementation resources on GASB 34 Publications and references (For copies, contact ): Internet: 1. Basic financial statements and management s discussion and analysis for state and local governments (Statement No. 34 of the GASB), No A/ June 1999, Governmental Accounting 2. Guide to implementation of GASB Statement 34 on basic financial statements and management discussion and analysis for state and local governments (Questions and answers). 5

10 Other State Governments South Carolina: Office of the Comptroller General Responsibilities The Comptroller General's Office was created in 1800 as "Paymaster" to supervise the expenditure of all state funds. The office maintains accounting controls for all state agencies and all funds in the state budget. The Comptroller General issues the state's Comprehensive Annual Financial Report, which is used by national firms to determine the state's bond rating for borrowing. Contact information S.C. Comptroller General 305 Wade Hampton Office Building P.O. Box Columbia, SC Phone: (803) Fax: (803) Internet: A section of the above website has details of the GASB 34 implementation in South Carolina. The resources include details of the advisory committee, overview of GASB-34 implementation in the state, presentation for training materials for state government employees, Link for GASB 34: 6

11 GASB resource guide, State of Florida: Division of accounting and auditing The Comptroller shall serve as the chief fiscal officer of the State, and shall settle and approve accounts against the State. The mission of the Division is to provide the highest level of fiscal support to the citizens and other state agencies that can be achieved by proud, dedicated, motivated professionals. Contact Information Robert F. Milligan, Comptroller Florida Department of Banking and Finance 101 E. Gaines Street Tallahassee, FL Phone: (850) Consumer Hotline: Internet: GASB resources area available on the Statewide Financial Statement Information page compiled by the section prepared by the Statewide Financial Reporting Section. The GASB section is organized in five sections, viz., background, meeting materials, related links, capital assets and component units. GASB Implementation resources website: ge.html 7

12 State of Virginia: Auditor of Public Accounts To serve Virginia's citizens by promoting sound financial management and accountability for public funds. The Office of the Auditor of Public Accounts accomplishes this mission by providing accurate and objective information and unbiased recommendations on financial management issues to the General Assembly and other decision makers based on the results of audits and analyses. Contact Information Visiting Address Auditor of Public Accounts The James Monroe Building 101 North 14th Street 8th Floor, Richmond, Virginia Phone: (804) Fax: (804) Mailing Address Auditor of Public Accounts PO Box 1295 Richmond, VA Internet: The Auditor of Public Account s website has a section devoted to implementation resources for GASB 34. The website is organized in seven sections, viz., GASB 34 Home, Guidance, Focus Group, Implementers, Publications, Training and Links Link for GASB 34 resources: 8

13 GASB resource guide, Professional associations/ NGOs California society of municipal finance officers (CSMFO) CSMFO promotes excellence in financial management through innovation, continuing education and the professional development of members. Contact Information California Society of Municipal Finance Officers 1400 K Street, Suite 400 Sacramento, CA Phone: (916) Fax: (916) Web-site: CSMFO has a section dedicated to GASB 34 in the resource section of the website. In this section, there are links to various case-studies, presentations, implementation schedules and reports on GASB 34. Some of the interesting case studies/ presentations have been enlisted below: Sample Financial Statements for the City of Tracy Under GASB 34 Berryman & Henigar GASB 34 presentation at the CSMFO 2000 conference. Sample Financial Statements for the City of Tracy Under GASB The CSMFO website also has a professional services directory, an internet directory of governmental professional service providers. The directory is statewide (California) in scope and lists professional service providers by geographical location and by professional category. Professional services directory: 9

14 American Accounting Association (government and non-profit section) The American Accounting Association promotes worldwide excellence in accounting education, research and practice. The Association is a voluntary organization of persons interested in accounting education and research. Contact 5717 Bessie Drive Sarasota, FL Phone: (941) Fax: (941) Internet: American Accounting Association: Government and Non-profit section on GASB 34 are available in the Government and non-profit section of the AAA website. This organization is mainly involved in basic and applied research in financial and managerial accounting, as well as auditing, for government and nonprofit organization. The website is organized in three sections: Teaching, section administration and section activities. It also has a link to the latest statements released by GASB. 10

15 GASB resource guide, The American Public Works Association The American Public Works Association is an international educational and professional association of public agencies, private sector companies, and individuals dedicated to providing high quality public works goods and services. The American Public Works Association serves its members by promoting professional excellence and public awareness through education, advocacy and the exchange of knowledge. Internet: The APWA web-site has a section dedicated to government affairs. Here, one can find a host of information related to public affairs in general and also discusses APWA s positions on various policy matters. Online shopping The AWPA website also has a e-commerce portal, where various books and other materials in various public works categories are available for purchase. Books on GASB can be found after conducting a search for GASB

16 Government Finance Officers Association About GFOA GFOA is the professional association of state/provincial and local finance officers in the United States and Canada, and has served the public finance profession since The association's nearly 15,000 members are dedicated to the sound management of government financial resources. Contact Information 1750 K St., N.W., Suite 350 Washington, D.C Phone: Fax: Internet: GASB 34 Forum: GFOA realizes that accounting and auditing professionals face a special challenge in trying to explain the GASB 34 model to elected officials, citizens and others with an interest in public-sector financial reports. Hence, GFOA has provided with a forum as a means to discuss the implementation of GASB 34. Forum website: The forum has been organized under ten different categories. Recommended practices: The GFOA website also has a section on recommended practices in the functional areas of public finance to give GFOA members and other state and local governments more guidance on sound financial management practices. This resource provides links to various books, articles, etc. to help members understand the recommended practices. Recommended practices website: Another feature of the GFOA website is an e-store where one can buy a publications and articles on a variety of topics related to GASB 34. E-store website: 12

17 GASB resource guide, The National Association of State Auditors, Comptrollers and Treasurers (NASACT) NASACT's mission is to assist state leaders in enhancing and promoting effective and efficient management of government resources. Contact Information Lexington, KY Office 2401 Regency Road Suite 302 Lexington, Kentucky Phone (859) Fax (859) Internet: The NASACT website has a section on Technical updates, where it has a subsection on GASB 34. Here, it has various links to GASB implementation procedures, training material, letters of comment, etc. GASB resources website: NASACT Implementation database: Frequently asked questions and their answers have been tabulated in a database format. This database is a clearing house for questions, problems, issues, proposed solutions and comments that arise as state and local governments begin the work of implementing Statement No. 34 of the Governmental Accounting Standards Board, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments. Implementation database website: 13

18 Relevant articles 1. How to read governmental financial statements, part 1, by Allison, Gregory S., Popular Government, Spring How to read governmental financial statements, part 2, by Allison, Gregory S., Popular Government, Fall 2001 Both the articles listed above have been reprinted with permission of The Institute of Government, The University of North Carolina at Chapel Hill. 14