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1
FY12-13 Closing and FY13-14 Opening Training
Presented by
Office of the State Controller
April 16, 2013
Ft. Logan - Denver
2
2
Agenda – General Session
• Opening Comments
• Calendar Highlights
• FAST Updates
• R&A Updates
• Questions
3
Presenters
FAST
Renee Strebelinski 303-866-4162
Reporting & Analysis
Tammy Nelson 303-866-2659
4
3
A Wordfrom the
State Controller
5
6
4
Opening Comments
• Fiscal Procedures Manual – March 2013
http://www.colorado.gov/dpa/dfp/sco/FiscalProcedures/Cur/manual_cur.htm
7
Opening Comments
• Audit Risk Letter
• Highlights
– Items of particular importance
– Changes from previous years
• Agency Planning Checklist
8
5
FY12-13 Closing Calendar Highlights
9
July 12 Close of Period 12. Last day for PV, IT, CR, encumbrance, and
other transactions.
July 16 Finalize expenditures related to Controlled Maintenance Projects
funded with section 8 enabling act money.
July 31 Period 13 closes for agency input. No more entries
August 2 Period 13 closes for OSC input
August 14 Agency Exhibits are due to the OSC. (Except for H, I, J, K1, & K2)
The variance analysis is also due to the OSC.
FY12-13 Closing Calendar Highlights (continued)
10
August 16 Uncommitted Cash Fund Reserve Report is due to the OSC.
August 30 Any Exhibits H received after this date are considered audit
adjustments.
September 6 Exhibits I and J are due to the OSC.
September 20 Exhibits K1 and K2 are due to the OSC. The OSC issues the BFS.
MD&A is due from agencies and institutions issuing stand alone
financial statements.
Audit Completion Submit a copy of the Management Representation letter to the OSC.
Also submit the final exhibit J to the OSC.
6
FY13-14 Opening Calendar Highlights
11
June 14 Deadline for agencies’ level 3 approvals on AP documents needed to
record the FY13-14 Long Bill.
July 12 Rollover of purchase documents from FY12-13 into FY13-14.
Coding for EPS transactions must be correct, EAP transactions must
be agency approved from SUSF.
August 26 COFRS goes on “full appropriation control”.
FAST Updates & Reminders
12
7
What does FAST do?
• “Eyes and ears” of the State Controller
• Serves as liaison
• Provides professional and technical assistance
• Approves agency budgetary and accounting transactions
13
What does FAST do?
• Delegated responsibilities from the State Controller
– Approve bank accounts
– Approve write-offs
– Approve loans and advances < $2 million
– Approve certain Fiscal Rule Waivers
– Approve financial reports
– Approve Petty Cash Delegations
– Financial System Security Administration14
8
FAST Staffing
FASTField Controllers
• Tom Gamache 3/866-3890
• Susan Thomson 3/866-4161
• Jing Ye 3/866-3891
• Renee Strebelinski 3/866-4612
FAST Accountant
• Brenda Shelinbarger 3/866-4165
E-mail: [email protected] Assignments:
http://www.colorado.gov/dpa/dfp/sco/FAST/FAST.pdf15
Other OSC Staff ContactsOthers
• Jennifer Henry – 3/866-3809
– ARRA and Internal Audit
• Julie Christopher – 3/866-3814
– Office Manager
• Valerie Smith – 3/866-3348
– Central Accounting Operations Manager and Warrants
16
9
Other OSC Staff Contacts
Others
• Marie Schneider - 3/866-3810
– Central Payroll Manager
• RaLea Sluga – 3/866-2127
– Contracts Manager
• Brenda Lujan – 3/866-5703
– Contract Administration (CMS)
17
TOPS Reminder
• TOPS = Transparency Online Project
System
• Certification of review is contained in
FRAC (due date is December 31)
• Report changes to FAST
• See details in Chapter 5, Section 6.7 of
Fiscal Procedures Manual
18
10
Forms Reminder
• Current forms have been posted on the OSC
website with updated manual
• Be sure to use current forms
– Loans and advances
– Overexpenditures
– Appropriation Transfers
– Bank Confirmations
– Capital Construction 6 Month Certification
– Accounts Receivable Requests
– FRAC19
COFRS Modernization LB Line
• COFRS modernization portion of billing
tracked separately from maintenance
portion
• Same process of positive coding will be
done in FY13-14
• Plan is to book the split with the Long Bill
booking for FY13-14
20
11
Transfers & Overexpenditures
• Statewide limits-– Overexpenditures are $3 million
– Transfers are $5 million
• Forms are due July 16
21
Diagnostic Reports
• Monitor FDW Diagnostic Reports(available daily & at period-end)
– Overexpended Lines Report
– Abnormal Balance report
– Transfer reports
– Budget to actual reports
– Specific Capital Construction Reports
• DO NOT WAIT FOR FAST! 22
12
Reminder: Form 8038s
Submit copy of IRS 8038 form to OSC within 5 days of filing
23
Rollforwards
• Use rollforward request form
• Reappropriated rollforwards• Become Cash in following year
– As 9523 Cash fund balance
– As current Cash earnings
• Requests due July 12
• APs are due August 10
24
13
Long Bill Booking
• APP2 Tables
– Tables rolled April 1
– Updates may begin on April 15 (when booking process begins)
– FAST APP2 review to be combined with AP approval of the BDA17R “AP Documents Awaiting 5th Level Approval”
– April 15, 2013 through June 28, 2013
– Not for FY12-13 activity25
Exhibit J – Financial Statements
• Initial due date September 6
• Final J due at completion of audit– Unless no additional entries
– Method of OSC approval of stand-alone financial statements
26
14
Exhibit J – Financial Statements (continued)
• Continue to issue both a Preliminary (P12) & Final Unrealized Gain/Loss (P13) T-Pool Allocation
– Agency/Institution may use Period 12, if not materially different from Period 13
• Presentation Entries
– Change for FY 12-13 related to bad debt expense
– Will be a presentation entry if not posted on COFRS
27
Management Rep Letters
• OSC representation based on agency/institution representations
• OSA standardization project
• Submit to FAST when submitted to OSA
• Thank you for your cooperation!
28
15
Interfaces to COFRS
• Get OSC in the loop – As soon as you even think you might need to interface.
• HOWEVER…….
• OIT resources are scarce!
– Time out from June to August
29
AP Documents and SAI’s
• SAI 01 – Long Bill– SAI 01 is used on Long Bill AP’s with dollar amount
• Includes informational only appropriations– $0 AP’s during Long Bill booking are still coded as 07– During Long Bill booking timeframe send support for any
AP’s with SAI other than 01 or 07 (for AP’s related to FY14)
• SAI 02 – Special Bill– Used for all special bills, except ones that have a
landscaped appropriation clause within the bill– Note that coding is not set up in COFRS for a special bill
unless you specifically request coding from the OSC
16
AP Documents and SAI’s (continued)
• SAI 03 – Supplemental Bill
– If a bill has ANY landscape appropriation clause
pages, then SAI is always an 03
– 1331 emergency supplementals use this SAI
– The add-on section in the long bill also uses this
SAI
AP Documents and SAI’s (continued)
• SAI 06 – Capital Construction Reversions
– Remember to ensure that the project is 100%
completed before reverting funds!
• SAI 07
– When using SAI 07 for transfers, ensure that
the end result nets to zero
17
AP Documents and SAI’s (continued)
• SAI 08 – Capital Construction
Carryforwards
– Lease purchase projects
• SAI 10 – Statutory Authority
– Please remember that you must always have a
statute reference on the AP or in the supporting
documentation when using this code
Questions?
34
18
Reporting & Analysis Update
Presented by: Tammy Nelson
35
Reporting & Analysis Update
–General Information
–Areas of Emphasis
–Changes
–Current & Upcoming GASB Standards
36
19
R&A Staff
Reporting & Analysis
• Tammy Nelson 3/866-2659
• Bhavna Punatar 3/866-4344
• Trevor Borgonah 3/866-3468
• Karoline Clark 3/866-3811
• Marc Burkepile 3/866-3346
• Vance Finley 3/866-3894
E-mail: [email protected]
Availability of ClosingReports
Distributed via FDW:
– By August 5
• Exhibit J Data Report (FAST via Excel)
• Final Diagnostics
– By August 7
• Period 13 Unrealized Gain/Loss Report
• Variance Analysis
• Exhibit Reconciling Balances Report
– By August 9
• Cash Funds Turnaround Report 38
20
Subsequent Events
• Added dates to calendar
– September 17 for Basic Financial Statements
– December 10 for CAFR
• Response Required
– Positive confirmation if nothing to report
– Should include everything in stand-alone financials, and may include more due to timing
39
Estimates
• Do NOT submit an Exhibit H just to revise an estimate recorded on COFRS
– Based on the best information available as of fiscal year close
• DO submit an Exhibit H for calculation errors
– An error does not include a flawed methodology
• DO submit revised estimates for contingencies reported on Exhibit L, if applicable
40
21
Reporting Entity
• $50 million EVALUATION threshold
– For both GASB 39 GASB 14/61 Entities
– Significance to the Primary Government
• Reported on U2
– Submit statements for $50 million entities
41
Refunds and Reimbursements
• Refunds/reimbursements are revenue
– Receipt in subsequent fiscal year
• Credited as 83xx non-augmenting revenue
– Not a credit to expenditures
• EXCEPT
–Incidental, non-recurring activities that involve a routine agency function
42
22
Pay Date Shift
• House Bill 12-1246 Reversal of Biweekly Paydate Shift
– Expenditures
• Do not shift General Funds related to biweekly employees
– Cash
• Similar to allocation process in prior year
– Apply % to object codes for cash entry as estimate of monthly portion
43
Bad Debt Expense
Uncollectible Revenue Bad Debt Expense
• GASB Q&A 7.40.3 and 7.72.2
– Offset to the Allowance for Doubtful Accounts is a reduction in revenue
• Current Year – Revenue reduction recorded on COFRS
– Existing practice for governmental funds
– Change for proprietary funds
44
23
Bad Debt ExpenseUncollectible Revenue Bad Debt Expense
• Prior Year – Recorded as bad debt expense, later reclassified as a nonbudgetary revenue reduction by R&A for financial statement purposes based on Exhibit U2
– Why, to avoid budgetary impact from prior year activity – not possible directly on COFRS
• Change for both governmental and proprietary funds
– Exception
• No related to revenue (loans, for example)
– Continue to record bad debt expense 45
Unspent Capital Lease Proceeds
• Unspent Capital Lease Proceeds
– Use new “Unspent” account for this purpose
• 02-2823 Unspent Capital Lease Proceeds
– Similar to Unspent Bond Proceeds (02-2817) and Unspent COP Proceeds (02-2813)
46
24
Reversions to Cash Funds
47
• Merit Pay
– General Fund in Specified Personal Services and Operating Line Items
• Legislative
– All General Fund in Legislature
• OIT
– Lines with General Fund IT savings
Diversion of Excess Indirect Costs Recoveries
48
• Indirect Cost Assessment Reversion Based on SB 13-109 (Alert #201)
– Collect Indirect Revenue
– Record it in the Indirect Cost Assessment Line Item
– Agencies to transfer excess over expenditures to Indirect Costs Excess Recovery Fund (Fund 27G) prior to close
25
Govt’l Fund Balance Reminders
Governmental Funds
- Agencies responsible to maintain fullyrestricted funds based on the funds listed in FPM (Chapter 3, Section 4) via Exhibit Q
AND
- Manually record partially restricted fund balances in Balance Sheet Account 03-3501
- Manually restrict applicable portion of cash, receivables, and investments
49
Govt’l Fund Balance Reminders
Governmental Funds
Communicate Other Changes Via Exh. Q
- Alternative spending prioritization policy
- Changes minimum fund balance policy or amounts
- Changes in stabilization arrangements
50
26
• Joint Vendor / State Implementation
• Expectation
– Agencies will incur capitalizable costs
• Guidance per GASB 51
– Does not include CMP Common Policy Line Item
• OIT will capitalize the applicable share of these costs these costs as it pays the vendor
51
COFRSII, CMP, CGI Advantage
– OSC will create specific COFRS asset and accumulated depreciation account
– Agencies must exclude these costs from their PACAP or ICRP
• Federal cost recovery via depreciation
– 8 Year Useful Life
Additional Guidance to Follow!
52
COFRSII, CMP, CGI Advantage
27
Cash Funds Uncommitted Reserves Report
• Legal Opinion– Fees set in statute not considered fees set by the
entity (excluded from Fee Revenues)
• Accounting Considerations– Segregate these fees by subrevenue if not distinct
within a single revenue source code
• Reporting Considerations
– Agency responsibility to identify and report this to the OSC, along with previously appropriated fund balance and alternate target reserves 53
Indirect Costs Recovery Assessment Report
• Due Annually Each November 1
– Activity by Departmental Account within the Indirect Costs Excess Recovery Fund
• Revenues
• Expenses
• Balance
54
28
Exhibits
• Available on OSC’s website at:http://www.colorado.gov/dpa/dfp/sco/FiscalProcedures/Cur/Exh_List_FY13.xls
• Marc Burkepile via the R&A Mailbox: dpa_ramailbox.state.co.us
• Original submission generally due August 14, revisions due as soon as practical once error or omission is discovered
55
Exhibits
• Reminders:
– Please indicate agency code in subject line of e-mail
– Mark revisions as revised, and include only changed sheets
– Include an agency H#, unique for each Exhibit H
56
29
Exhibits C,D, F1 & W
New Balance Sheet Codes
02-2823 Unspent Capital Lease Proceeds and/or 02-2817 Unspent Bond Proceeds
01-1870 Nondepreciable Other Capital Assets
57
Exhibit H – Postclosing Entries
• Removed Exhibit H from Workbook
– Long Form Available
– No due date, however as soon as practical after error or omission is discovered
• Except: OIT and Medicaid deferral H – August 21
• Considered an audit adjustment after August 30
– Posted based on materiality
58
30
Exhibit H – Postclosing Entries
• Cutoff for Basic Financial Statement Posting – August 30
– After August 30 posted only if material, or in conjunction with OSA audit team
– Only submit related exhibits after August 30 if R&A notifies you that the entry has been posted
59
Exhibit K – Schedule of Federal Assistance
• House Bill 12-1009 - Federal Funds Transparency Act
Additional Elements
• If not required to report
• Mark additional fields “N/A”
• If required to report
• “$0” if no Direct Admin
• “None” if no obligations60
31
Exhibit O2 – Service Concession Arrangements
– Amounts
• Related assets, liabilities, and deferred inflows
– Narrative
• General description of arrangement
• Assets, liabilities, and deferred inflows
• Rights granted and retained
• Guarantees and commitments
61
Exhibit S – Short Term Financing
• Section added
– Area for descriptive information about the borrowing
62
32
Exhibit U2 - Miscellaneous
• Reflects new $50 million GASB 39 threshold
• Reflects Section for Bad Debt Expense
– For use in reclassification as nonbudget debit revenue
• Fund, Agency, Revenue Source Code, Amount
63
A/R A/P Confirmations
Reminders:
– Agencies can refuse to confirm past July 19 deadline
• Significant differences will require an Exhibit H
– Gaming Receivable
• Later due date: July 25
64
33
PERA• Compensated Absences Accrual-PERA
Percentage Applicable to Annual Leave
– PERA’s actuary Cavanaugh Macdonald Consulting
• Percentage expected to retire
–57.1% for State Employees (except State Troopers)
–67.8% for State Troopers
65
PERA
• Suggested PERA footnote language
– FPM updated through June 30, 2012 including 2012 legislation
– Additional updates will be
distributed via e-mail
• Based on PERA’s audited
December 31, 2012 statements 66
34
TABOR
• TABOR exempt enterprises for FY12-13 (Ch. 5, Sec. 5 of FPM)
– Partially New – Geological Survey in the School of Mines (Fund 342)
• Effective 1/31/2013
67
TABOR
• All higher education institutions expected to continue to fully qualify• Reminder: AHEC is only partially designated
• State Fair, again, is not expected to qualify
Review any revenues received from these agencies/institutions for proper TABOR treatment
68
35
Questions?
69
New GASB Standards
GASB pronouncements are available at:
http://www.gasb.org/jsp/GASB/Page/GASBSectionPage&cid=1176160
042391
36
GASB Standards Implementing in FY12-13
• GASB Statement No. 60 – Accounting and Financial Reporting for Service Concession Arrangements
• GASB Statement No. 62 – Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements
71
GASB Standards Effective for FY13-14
• GASB Statement No. 65 – Items Previously Reported as Assets and Liabilities
• GASB Statement No. 66 – Technical Corrections - 2012 – an amendment of GASB Statement No. 10 and 62
72
37
GASB Standards Effective for FY14-15
• GASB Statement No. 68 – Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27
• GASB Statement No. 69 – Government Combinations and Disposals of Government Operations
73
Early GASB Implementation FY11-12
• GASB 63 – Financial Statement Elements
– Deferred Inflows and Outflows
• Separate from Assets and Liabilities
– Limited use of “Deferred” terminology to Deferred Inflows and Outflows
Assets + Deferred Outflows – Liabilities
– Deferred Inflows = Net Position
74
38
Early GASB Implementation FY11-12
• Deferred Inflow - A deferred inflow of resources is an acquisition of net assets by the government that is applicable to a future reporting period
• Deferred Outflow - A deferred outflow of resources is a consumption of net assets by the government that is applicable to a future reporting period.
• Use only as directed!
75
Early GASB Implementation FY11-12
• GASB 61 – Reporting Entity– Component Units meeting the fiscal dependency
criteria must also meet the financial benefit/burden test
– Amends criteria for blending if qualified under substantively the same governing body, also requires
– Clarifies equity interests for legally separate organizations
76
39
Service Concession Arrangements (GASB 60)
• GASB Statement No. 60 – Accounting and Financial Reporting for Service Concession Arrangements
– Not equivalent to public private initiatives per C.R.S 24-38-201-205 and 40-9.5-116
– Service Concession Arrangements
• Primary function
• Applicable to statements using
economic resources measurement focus77
Service Concession Arrangements (GASB 60)
– Service Concession Arrangements
• Public-private partnership whereby all conditions met:
– Transferor conveys to the operator right and obligation to provide public services through the use of a capital asset for significant consideration
– Operator collects fees from third party
78
40
Service Concession Arrangements (GASB 60)
• Applies only when specific criteria met for whether transferor has control over facility
– Transferor has ability to modify/approve services provided, and the price or rate
– Transferor entitled to residual interest in service utility of facility at end of arrangement
79
Service Concession Arrangements (GASB 60)
• Facility– Existing – Transferor to continue to report as a
capital asset
• Depreciate unless operator required to return asset in its original or enhanced condition
– New or improved – Transferor to report fair value at date placed in service, and liabilities, and the difference as a deferred inflow of resources
80
41
Service Concession Arrangements (GASB 60)
• Revenue recognition by transferor on systematic rational basis over term of agreement
• Government as Operator
– Intangible assets at cost for rights to access facility and collect third party fees
– Amortizes asset over term of agreement
• Revenue Sharing
• Governmental operators report all revenues and expenses
• Transferor reports its portion of shared revenues81
Service Concession Arrangements (GASB 60)
New Balance Sheet Account
• 01-1945
– Deferred Inflows – SCA
New Disclosure
• New Exhibit O2
82
42
FASB Codification (GASB 62)
• Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements
– Governments already
follow these standardsEASY
83
FASB Codification (GASB 62)
• Bright line
– No option to follow post-November 30, 1989 FASB standards
• Falls in to “Other Accounting Literature”
84
43
FASB Codification (GASB 62)
• Common Topics
– Contingencies
– Leases
– Related Parties
– Special/Extraordinary Items
– Interest Capitalization
85
FASB Codification (GASB 62)
• Also includes:– Revenue recognition in exchange transactions
and the related impact when the right of return exists,
– Gain/loss recognition on the extinguishment of debt and foreign currency transactions,
– Imputed interest costs,
– Inventory valuation,
– Financial statement items, and
– Specialized topics86
44
Items Previously Reported as Assets and Liabilities (GASB 65)
GASB Statement No. 65 – Items Previously Reported as Assets and Liabilities
Deferred Inflows/Outflows
• Limited to instances where GASB specifically authorizes use
– GASB 53 – Derivatives
– GASB 60 – Service Concession Arrangements
– GASB 63 – Deferred Outflows, Inflows, and Net Position
87
Items Previously Reported as Assets and Liabilities (GASB 65)
88
Deferred Inflow - A deferred inflow of resources is an
acquisition of net assets by the government that is applicable to a future reporting period.
Deferred Outflow - A deferred outflow of resources is
a consumption of net assets by the government that is
applicable to a future reporting period.
Pages 298-299 March 2013 FPM
45
Items Previously Reported as Assets and Liabilities (GASB 65)
89
Long Term Receivables in Governmental Funds
• Recognize deferred inflow (02-1949), not a deferred revenue liability in the Governmental Fund
• On a full accrual bases for the Government-Wide Statements, revenue recognition isrequired• Reverse DI accrual in F471
Governmental FL Statements
Items Previously Reported as Assets and Liabilities (GASB 65)
• Debt
– Refunding Gains/Losses
• Currently – reflect in the debt liability and amortize as a component of interest expense over the shorter of the life of the old or the new debt
• FY13-14 – reflect as either a deferred inflow (book loss) or a deferred outflow (book gain), rather than in the debt liability account
– 01-1922 Deferred Outflow – Refunding G/L
– 02-1942 Deferred Inflow – Refunding G/L
• Amortized as in the past 90
GW Statements
46
Items Previously Reported as Assets and Liabilities (GASB 65)
• Debt
– Deferred Debt Issuance Costs
• Currently – Recorded as an asset, expensed over the life of the debt
• FY13-14 – Immediately expensed
– Except for prepaid insurance
This means the deferred debt issuance cost account (01-1711) will
no longer be used!
91
GW
Statements
Items Previously Reported as Assets and Liabilities (GASB 65)
• Grants (Government-Mandated Nonexchange
Transactions & Voluntary Nonexchange Transactions)
– Currently – Recognized as revenue when all eligibility criteria met, otherwise recorded as deferred revenue (GASB 33)
• Time
• Recipient Characteristics
• Reimbursement Basis Grant
• Contingency Requirements
Purpose Restriction Do Not Impact Revenue Recognition!
92
GW & FL Statements
47
Items Previously Reported as Assets and Liabilities (GASB 65)
• Grants (Government-Mandated Nonexchange
Transactions & Voluntary Nonexchange Transactions)
– FY13-14 – Separate consideration of the time
• If last three requirements met, but not time requirement, treat as a deferred inflow (02-1946)
• If one of last three requirements not met, treat as an unearned revenue liability (02-25xx)
– Time
– Recipient Characteristics
– Reimbursement Basis Grant
– Contingency Requirements
93
GW & FL Statements
Items Previously Reported as Assets and Liabilities (GASB 65)
• Fines (Imposed Nonexchange Revenue
Transactions)
– Currently – Treated as deferred revenue, recognized as revenue in period allows in enabling legislation
– FY13-14 – Treated as deferred inflow (02-1946), recognized as revenue in the period allowed by enabling legislation
94
GW & FL Statements
48
Items Previously Reported as Assets and Liabilities (GASB 65)
• Leases
– Lessor’s Direct Initial Costs
– Currently – Recognized as Deferred Revenue and recognized over the term of the agreement
– FY13-14 – recognized immediately as revenue
95
GW & FL
Statements
Items Previously Reported as Assets and Liabilities (GASB 65)
• Leases
– Sales/Leaseback
– Currently – Gain/Loss deferred and recognized over term of agreement
– FY13-14 – Gain/Loss treated as Deferred Inflow/Outflow, recognized over the term of the agreement (01-1923 or 02-1943 –Other)
96
GW & FL
Statements
49
Items Previously Reported as Assets and Liabilities (GASB 65)
• Lending Activities
– Loan Origination Fees/Costs
• Currently
– Fees treated as deferred revenue, recognized over the life of the loan
– Costs treated as deferred changes, recognized as expense over the life of the loan
• FY13-14 – Except for fees related to points, immediately recognize as revenue or expense
– Points treated as Deferred Inflow (02-1941), recognized as revenue over the life of the loan
97
GW
Statements
Items Previously Reported as Assets and Liabilities (GASB 65)
• Lending Activities
– Commitment Fees
• Currently – Treated as deferred revenue until commitment exercised or upon expiration of the commitment, recognized as revenue over the life of the loan
• FY13-14 – Treated as unearned revenue until the commitment exercised or upon expiration of the commitment, recognized as revenue immediately at that point
98
GW Statements
50
Items Previously Reported as Assets and Liabilities (GASB 65)
• Lending Activities
– Group of Loans Purchased
• Currently – The difference between the purchase price (net of fees) and the principal adjusts the receivable, and is recognized as an adjustment to yield over the life of the loans
• FY13-14 – Immediately recognize revenue or expense in the period of acquisition
99
GW Statements
Items Previously Reported as Assets and Liabilities (GASB 65)
• Specialized Activity
– 01-1923 DO-Other & 02-1943 DI-Other
• Sales of Future Revenue Streams
• Regulated Activities
– Insurance
– Mortgage
– Regulated Operations
• Utilities
100
51
Items Previously Reported as Assets and Liabilities (GASB 65)
• Accounting Change
– Related beginning FY12-13 balance
• Reclassified to DI/DO
• Reclassified to Fund Balance
– Entries need to be complete by P6 FY13-14
101
GASB Statement No. 66
102
GASB Statement No. 66 – Technical Corrections to GASB 10 & 62�Allows for Risk Management activities to be
reported in a special revenue fund, if appropriate�Amends GASB 62 for:
• Operating lease payments that vary from straight-line
• Difference between purchase price and principal amount of purchased loans
• Servicing fees for mortgage loans sold when rate varies significantly from normal servicing rate
52
On the Horizon
103
Pension standards (FY14-15)� Proprietary funds will gain a liability
Government Combinations (FY14-15)------------------------------------------------------------------Economic Condition Reporting
� Cash basis projections
Financial GuaranteesFair Value ValuationsGAAP HierarchyOPEB
On the Horizon
104
OMB Circulars�Audit threshold�Indirect cost rate negotiation
COFRSII�Interim Cash Basis
�No interim period closes�Elimination/Changes of Some Exhibits�No Exhibit Hs – On system
53
Questions?
105
THE END
106