LGC UPDATE. 2012 NCGFOA Summer Conference. Sharon Edmundson. 7/16/2012. AGENDA. Announcements / Reminders Auditing and Reporting Issues Coming Attractions. ANNOUNCEMENTS / REMINDERS. Introductions & Welcome Staff Changes: Tabitha Mbaka left at the end of March 2012 - PowerPoint PPT Presentation
LGC UPDATE2012 NCGFOA Summer ConferenceSharon Edmundson7/16/20121AGENDAAnnouncements / RemindersAuditing and Reporting IssuesComing Attractions2Introductions & Welcome
Staff Changes:Tabitha Mbaka left at the end of March 2012 Her position has not yet been filledAlexia Forte is leaving at end of July 2012In Debt Management - Ken Durham will be retiring this OctoberANNOUNCEMENTS / REMINDERS33ANNOUNCEMENTS / REMINDERSNew State Treasurers website is up and running 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:Will still use commercial portalData input sheets will be downloaded from Treasurers website rather than from portalChanges to an audit will NOT be accepted piecemeal Entire audit must be resubmitted rather than inserting individual pages
4ANNOUNCEMENTS / REMINDERSInvoice 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)5Best 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.
ANNOUNCEMENTS / REMINDERS66New 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 15Please begin conversations with your auditor and the Debt Management Section if you anticipate seeking debt approval in the November to January timeframeThe opinion, financial statements, notes and supplemental schedules are required compliance audits can be delayedMark your calendar and notify your auditor & Tim Romocki if issuing debt in October, November or December of 2012
ANNOUNCEMENTS / REMINDERS77ANNOUNCEMENTS / REMINDERSUnit letter responses
Address each concern raised in the letter
Include specific action taken to address each concern
Back up actions with summary data if possible
Our letter and your response go to the LGC with any debt applications for approval8ANNOUNCEMENTS AFIR REDESIGNIn 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 processWill be training materials available to guide you through the new form99ANNOUNCEMENTS AFIR PROCESSUS Census supported website
Download Excel Worksheet to your PC
When completed, upload Excel file to the same US Census website10ANNOUNCEMENTS AFIR FORMDesigned to tie to your:Revenue, Expenditure and Change in Fund Balance Statement andRevenue, 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.
11ANNOUNCEMENTS 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 Revenues website are no longer broken out in a separate line item on the AFIR.
Cities and counties now use the same form. 12ANNOUNCEMENTS 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 years data on it, but does have beginning balances for the White Goods and School Capital Outlay sections13AUDITING AND REPORTING ISSUESCost Allocations vs. Transfers
Cost allocations should be treated as reimbursements to reduce the cost of operations. It is not revenue it is a contra account.
Transfers are a gift of financial resources or equipment; they will be treated as revenue/OFS to the receiving fund.
14Treatment of PILOTs Payments in Lieu of Taxes
Payments to compensate the general government for public services rendered, based on tax rate
Should be classified as transfers nonreciprocal interfund activity in the enterprise operating statement. Please classify as Transfer Payment in lieu in both funds.
AUDITING AND REPORTING ISSUES15AUDITING AND REPORTING ISSUESBudgets should be presented at FYE as they stood at June 30 regardless of any subsequent budget amendments.Those subsequent amendments may improve the legal standing of the Board and the finance officer for purposes of compliance to GS 159-25 and 159-28Financial statements should be presented as of June 3016AUDITING AND REPORTING ISSUESGASB 54 IssuesRSS is reported on both government-wide and governmental funds statements in equityThe cash component of RSS must be restricted on both statements; Powell bill cash must be restricted on government-wide statementsOn governmental funds statement no fund but GF can have positive unassigned fund balanceFailure to include fund balance policy statement and discussion of treatment of encumbrances
17AUDITING AND REPORTING ISSUESGASB 54 Issues continuedCapital Reserves caused problems in 2011
If they are being reclassified as capital projects, be sure to title as such
If they are consolidated into the General Fund, be sure to show a reconciliation in the front and a budget in the supplementary schedules
Capital reserve is a statutory title with strict requirements about budgeting and the budgeting and use of funds
18AUDITING AND REPORTING ISSUESE 911 FundsProblematic for last several years because of differences between the audited fund and the PSAP Revenue and Expenditure report that is filed with the 911 BoardContinue to work with 911 staff to find a workable solutionIn 2011, we published in IFS an example of a detailed fund schedule that would allow 911 staff to reconcile audited fund to PSAP reportFeedback from units was mostly negative19AUDITING AND REPORTING ISSUESE 911 FundsFor 2012 units can use the detailed example OR go back to a more summarized format similar to other funds in the unitUnits 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 ReportWhy? Fiscal Research and Legislators look at audits and data from 911 Board and see the differencesHandout of fund statements and sample reconciliation
20AUDITING AND REPORTING ISSUESE 911 Funds62A.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.
21AUDITING AND REPORTING ISSUESE 911 FundThere 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.Can transfer wireless 911 funds out of ETS Fund but will need to explainTypical example is transferring to a capital project fund where some of the purchases are being funded with 911 funds.Any wire line funds that remain in your ETS Fund MUST be transferred out and can be used for any purpose.
22AUDITING AND REPORTING ISSUESCalculation of Tax Collection PercentageWorked with the SOG and the Tax Collectors Association to ensure that collection percentage calculation is standardized and in compliance with the General StatutesUnits can use other methods of calculating the percentage for internal uses such as performance measuresMethod to be used for financial statement presentation and for budgeting purposes is as shown in 2012 Illustrative Financial StatementsSee handouts23AUDITING AND REPORTING ISSUESIncluded in collection percentage calculation:Current year taxes receivedNot included in collection percentage calculation:InterestLate listing/discovery penaltiesService feesAdvertising costsAny other costs of collectionIncluded in the current year levy:Unit-wide taxes only, no special districts includedDiscoveries made through December 31 of the fiscal year24DEPOSIT AND INVESTMENT ISSUESLGC-203 is a semiannual requirement (June 30 and December 31)LGC-203 for June 30, 2012 due to be filed by July 25, 2012Late letters will not go out until third week of AugustForm 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. This workbook has the dropdown lists for unit name and bank name. (If you cannot find your name or bank, please call the office.) 25DEPOSIT AND INVESTMENT ISSUESINV-91 is an annual requirement for the June filing.
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.Most efficient and effective to send along with your LGC203 forms and documentation
Allows DST staff to match local government deposit accounts to information provided by their depositories.
This is necessary to ensure that local government funds ar