Transcript GASB 34
GASB 34 A New Governmental Financial Reporting Model Different Financial Reporting Models Business Enterprise-FASB Not-for-profit organizations GASB State and local governments Why are we doing this? This new model will better serve current users of state and local government financial reports and attract new users whose needs were not met by the previous model. Improve Financial and Operational Accountability. Improves comparability between districts. Because we have to. Why is there a need for a new financial reporting model? Improved Accountability Fiscal accountability Operational accountability GASB 34 Improves Financial Accountability Focus on major individual funds Focus on major individual fund budgets Inclusion budget of data from the original GASB 34 Improves Operational Accountability Introduction of district-wide financial statements Expanded focus for district activities Presentation Narrative of cost data overview and analysis MD&A-What is it? A brief explanation of the types of presentations that make up the basic financial statements Condensed financial information allowing readers to compare the current and prior fiscal periods Analysis of the district’s overall financial position Analysis of the balances and transactions of major individual funds Analysis of variations from the original and final amended budget for the general fund Significant Any capital asset and long-term debt activity facts, decisions, or conditions known as of the close of audit field work that are expected to have a significant effect on financial position or results of operations District-Wide Financial Statements There are two district-wide basic financial statements: 1. Statement of Net Assets-used to report all the district owns (assets) and all the district owes (liabilities). 2. Statement of Activities-used to report all changes in a district’s net assets Required supplementary information (RSI) A budgetary comparison must be presented in connection with the basic financial statements for the general fund and any major individual special revenue funds •Expenditures and revenues as approved in the original budget •Expenditures and revenues per the final amended version of the budget. •Actual expenditures and revenues calculated using the same basis of accounting used for budgeting. Where are we in the process? About 75% Complete Key Components of the New Model Improvements Designed to Enhance Improvements Designed to Enhance Operational Accountability Fiscal Accountability Previous Model New Model Previous Model New Model All reporting based on funds and fund type Introduction of district-wide financials Information in basic financials aggregated by fund type Financials presented separately for major governmental and enterprise funds District activities limited to nearterm inflows & outflows of spendable resources District-wide financials provide longterm focus for district activities Budgetary comparisons aggregated by fund type Budgetary comparisons presented for general fund and individual major special revenue funds Budgetary comparisons report only final amended budget Budgetary comparisons report both original and final amended budget Cost data available Cost data only for businessprovided for type activities governmental & businesstype activity No narrative required Narrative overview & analysis What is left to do? Review fixed assets Reclassify Capital Assets into a GASB 34 format Develop the Management Discussion & Analysis THE END