Transcript State_and_Local_Government_Finance_PowerPoint_Template

LGC UPDATE
2012 NCGFOA Summer Conference
Sharon Edmundson
7/16/2012
AGENDA
• Announcements / Reminders
• Auditing and Reporting Issues
• Coming Attractions
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ANNOUNCEMENTS / REMINDERS
• Introductions & Welcome
• Staff Changes:
o Tabitha Mbaka left at the end of March 2012
o Her position has not yet been filled
o Alexia Forte is leaving at end of July 2012
o In Debt Management - Ken Durham will be retiring this October
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ANNOUNCEMENTS / REMINDERS
• New State Treasurer’s website is up and running
o Please note that old bookmarks will not work
• 2011 Audit Process was big hit and will continue for
2012 – changes on your side will be minimal:
o Will still use commercial portal
o Data input sheets will be downloaded from Treasurer’s
website rather than from portal
o Changes to an audit will NOT be accepted piecemeal –
Entire audit must be resubmitted rather than inserting
individual pages
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ANNOUNCEMENTS / REMINDERS
• Invoice processing for 2012 will be the same as
last year
• Notice of approvals to units and auditors will be
received via email
• Memo with updated 2012 instructions for
processing audits is coming in August
• Illustrated statements for 2012 will be posted to
web very soon (Charter schools and Boards of
Ed currently available)
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ANNOUNCEMENTS / REMINDERS
Best way to stay informed is through listserv:
LGC_News
May want multiple people on your staff registered in
case you are out of the office.
Please give Sharon, Rita, or Amy a business card or send us
an email if you wish to be registered.
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ANNOUNCEMENTS / REMINDERS
• New fiscal year:
• Units with debt applications going before the LGC starting
in November 2012 will need to have 2012 audit completed
and final statements submitted to SLGFD by October 15
• Please begin conversations with your auditor and the Debt
Management Section if you anticipate seeking debt
approval in the November to January timeframe
o The opinion, financial statements, notes and supplemental
schedules are required – compliance audits can be delayed
Mark your calendar and notify your auditor & Tim Romocki
if issuing debt in October, November or December of 2012
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ANNOUNCEMENTS / REMINDERS
• Unit letter responses
o Address each concern raised in the letter
o Include specific action taken to address each concern
o Back up actions with summary data if possible
o Our letter and your response go to the LGC with any
debt applications for approval
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ANNOUNCEMENTS – AFIR REDESIGN
• In the final stages of new AFIR design
• Field tested by both municipalities & counties
• Fiscal Year Data for 2012 will be collected using
the new AFIR process
• Specific instructions will go out in August 2012
regarding the new process
• Will be training materials available to guide you
through the new form
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ANNOUNCEMENTS – AFIR PROCESS
• US Census supported website
• Download Excel Worksheet to your PC
• When completed, upload Excel file to the
same US Census website
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ANNOUNCEMENTS – AFIR FORM
• Designed to tie to your:
o “Revenue, Expenditure and Change in Fund Balance
Statement” and
o “Revenue, Expense and Change in Net Asset
Statement”
• Units enter data and balance into the form at
either the Fund level or Fund Type level, so it
will be easier to keep funds in balance with the
financial statements.
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ANNOUNCEMENTS – AFIR FORM (continued)
• There are fewer revenue and expenditure
categories, so there will be more items in
“other”.
• Many of the Revenue items that are accessible
on the Department of Revenue’s website are no
longer broken out in a separate line item on the
AFIR.
• Cities and counties now use the same form.
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ANNOUNCEMENTS – AFIR FORM (continued)
• This year will be two versions – one each for
municipalities and counties with only difference
being that each is crosswalked to the “old” AFIR
– field testers found this helpful in learning the
new form.
• AFIR no longer has the previous year’s data on
it, but does have beginning balances for the
White Goods and School Capital Outlay sections
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AUDITING AND REPORTING ISSUES
• Cost Allocations vs. Transfers
o Cost allocations should be treated as
reimbursements to reduce the cost of operations. It
is not revenue – it is a contra account.
o Transfers are a gift of financial resources or
equipment; they will be treated as revenue/OFS to
the receiving fund.
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AUDITING AND REPORTING ISSUES
• Treatment of PILOTs – Payments in Lieu of Taxes
o Payments to compensate the general government for
public services rendered, based on tax rate
o Should be classified as transfers – nonreciprocal
interfund activity – in the enterprise operating statement.
Please classify as “Transfer – Payment in lieu” in both
funds.
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AUDITING AND REPORTING ISSUES
• Budgets should be presented at FYE as they
stood at June 30 regardless of any subsequent
budget amendments.
o Those subsequent amendments may improve
the legal standing of the Board and the
finance officer for purposes of compliance to
GS 159-25 and 159-28
o Financial statements should be presented as
of June 30
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AUDITING AND REPORTING ISSUES
• GASB 54 Issues
o RSS is reported on both government-wide and
governmental funds statements in equity
o The cash component of RSS must be restricted on
both statements; Powell bill cash must be restricted
on government-wide statements
o On governmental funds statement – no fund but GF
can have positive unassigned fund balance
o Failure to include fund balance policy statement and
discussion of treatment of encumbrances
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AUDITING AND REPORTING ISSUES
• GASB 54 Issues – continued
o Capital Reserves caused problems in 2011
o If they are being reclassified as capital projects, be
sure to title as such
o If they are consolidated into the General Fund, be
sure to show a reconciliation in the front and a
budget in the supplementary schedules
o Capital reserve is a statutory title with strict
requirements about budgeting and the budgeting
and use of funds
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AUDITING AND REPORTING ISSUES
• E 911 Funds
o Problematic for last several years because of
differences between the audited fund and the PSAP
Revenue and Expenditure report that is filed with the
911 Board
o Continue to work with 911 staff to find a workable
solution
o In 2011, we published in IFS an example of a detailed
fund schedule that would allow 911 staff to reconcile
audited fund to PSAP report
o Feedback from units was mostly negative
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AUDITING AND REPORTING ISSUES
• E 911 Funds
o For 2012 units can use the detailed example OR go
back to a more summarized format similar to other
funds in the unit
o Units are asked to complete a reconciliation between
the audit and the report filed with 911 Board if audit
does not agree with PSAP Revenue and Expenditure
Report
o Why? Fiscal Research and Legislators look at audits
and data from 911 Board and see the differences
o Handout of fund statements and sample reconciliation
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AUDITING AND REPORTING ISSUES
•
E 911 Funds
o 62A.46.(b1) (Effective July 1, 2011) Carryforward. – A PSAP
may carry forward distributions for eligible expenditures for
capital outlay, capital improvements, or equipment replacement.
Amounts carried forward to the next fiscal year from distributions
made by the 911 Board may not be used to lower the
distributions in subsection (a) of this section unless the amount
is greater than twenty percent (20%) of the average yearly
amount distributed to the PSAP in the prior two years. The
911 Board may allow a PSAP to carry forward a greater amount
without changing the PSAP's distribution.
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AUDITING AND REPORTING ISSUES
• E 911 Fund
o There is no pre-purchase approval required for purchases
made with wireless 911 money; staff is available to assist if
you have questions and they encourage you to call if there
are questions about a purchase.
o Can transfer wireless 911 funds out of ETS Fund but will
need to explain
o Typical example is transferring to a capital project fund
where some of the purchases are being funded with
911 funds.
o Any wire line funds that remain in your ETS Fund MUST
be transferred out and can be used for any purpose.
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AUDITING AND REPORTING ISSUES
• Calculation of Tax Collection Percentage
o Worked with the SOG and the Tax Collectors’
Association to ensure that collection percentage
calculation is standardized and in compliance with the
General Statutes
o Units can use other methods of calculating the
percentage for internal uses such as performance
measures
o Method to be used for financial statement
presentation and for budgeting purposes is as shown
in 2012 Illustrative Financial Statements
o See handouts
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AUDITING AND REPORTING ISSUES
•
•
•
Included in collection percentage calculation:
o Current year taxes received
Not included in collection percentage calculation:
o Interest
o Late listing/discovery penalties
o Service fees
o Advertising costs
o Any other costs of collection
Included in the current year levy:
o Unit-wide taxes only, no special districts included
o Discoveries made through December 31 of the fiscal year
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DEPOSIT AND INVESTMENT ISSUES
• LGC-203 is a semiannual requirement (June 30 and
December 31)
• LGC-203 for June 30, 2012 – due to be filed by July 25,
2012
o Late letters will not go out until third week of August
• Form has been revised – DO NOT USE ANY EXCEL
WORKBOOK EARLIER THAN THE REV. 12-11
VERSION – preferably you will use the Rev. 6-12
version.
o This workbook has the dropdown lists for unit name and
bank name. (If you cannot find your name or bank, please call the office.)
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DEPOSIT AND INVESTMENT ISSUES
• INV-91 is an annual requirement for the June filing.
o INV-91 for June 30, 2012 – due to be submitted to
your depository with a copy filed with our office
BY AUGUST 24, 2012 for each bank.
o Most efficient and effective to send along with your
LGC203 forms and documentation
o Allows DST staff to match local government deposit
accounts to information provided by their
depositories.
o This is necessary to ensure that local government
funds are sufficiently collateralized.
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DEPOSIT AND INVESTMENT ISSUES
• Be cautious with investments offered with rates
of return significantly higher than what appears
to be available in the markets.
• Remember – Safety, Liquidity, then Yield
• Avoid any investment you do not understand.
• Questions? Call our office at 919-807-2381.
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COMING ATTRACTIONS
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Memo on tax collection percentage calculation
Reporting Issues memo
Retirement rate and other disclosure data memo
Remaining Illustrative Financial Statements
o Schools and Charters on the website
o Dogwood complete
o Carolina County in final stages
o Housing Authority being updated now
Detailed instructions on new AFIR
Detailed instructions on retrieving data input sheets for 2012 audits
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Questions?
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Thank you!
Together , we can build and maintain a fiscally strong and prosperous North Carolina.
www.NCTreasurer.com
[email protected]