T he L ate st GASB Imple me ntation Guidanc e Kansas Gove r nme - - PowerPoint PPT Presentation
T he L ate st GASB Imple me ntation Guidanc e Kansas Gove r nme nt F inanc e Offic e r s Annual Confe r e nc e Che ste r Mo ye r, CPA Oc to b e r 13, 2017 So urc e o f info rma tio n All o f the info rma tio n wa s pulle d dire c
imple me nta tio n g uide s a va ila b le o nline
imple me nta tio n g uida nc e
2
4
6
13
e mplo ye e s a s a fiduc ia ry fund in its fina nc ia l re po rt. T he pe nsio n pla n do e s no t issue a sta nd-a lo ne fina nc ia l re po rt. Sho uld the g o ve rnme nt ma ke the no te disc lo sure s a nd pre se nt the sc he dule s o f re q uire d supple me nta ry info rma tio n (RSI ) re q uire d b y Sta te me nt 67 fo r the pe nsio n pla n, a s we ll a s the no te disc lo sure s a nd sc he dule s o f RSI re q uire d fo r a n e mplo ye r tha t pro vide s b e ne fits thro ug h the pla n?
n this c irc umsta nc e , the pre se nta tio n o f info rma tio n fro m two pe rspe c tive s is re q uire d within the sa me re po rt—first, fro m the pe rspe c tive o f a n e mplo ye r tha t pro vide s its e mplo ye e s with b e ne fits thro ug h the pe nsio n pla n a nd, se c o nd, fro m the sta ndpo int o f the pe nsio n pla n itse lf. Ac c o rding ly, in a dditio n to a pplying e mplo ye r re po rting re q uire me nts, the g o ve rnme nt sho uld inc lude in its fina nc ia l re po rt info rma tio n re q uire d b y Sta te me nt 67 fo r the pe nsio n pla n. Ho we ve r, fo o tno te 9 o r fo o tno te 11 o f Sta te me nt 67, a s a pplic a b le , pro vide s fo r c o o rdina tio n
within the e mplo ye r’ s fina nc ia l re po rt with the o b je c tive o f a vo iding unne c e ssa ry duplic a tio n o f info rma tio n within tha t re po rt.
14
15
16
und Balanc e Re po rting and Go ve rnme ntal F und T ype De finitio ns, e sta b lish the re q uire me nts fo r the displa y o r disc lo sure o f the purpo se s fo r whic h fund b a la nc e a mo unts ha ve b e e n re stric te d , c o mmitte d, o r a ssig ne d. At wha t le ve l o f de ta il sho uld tho se a mo unts b e re po rte d?
fina nc ia l sta te me nts, it wo uld b e a ppro pria te fo r g o ve rnme nts to a pply the sa me minimum le ve l-o f-de ta il c o nside ra tio n to b o th g o ve rnme nta l fund e xpe nditure s a nd fund b a la nc e s. Pa ra g ra ph 87 o f Sta te me nt No . 34, Basic F inanc ial State me nts—and Manag e me nt’ s Disc ussio n and Analysis—fo r State and L
g o ve rnme nta l fund e xpe nditure s to b e c la ssifie d a t a minimum b y “func tio n.” Be c a use pa ra g ra phs 22 a nd 25 o f Sta te me nt 54 re fe r to purpo se s b ut do no t e la b o ra te o n wha t tha t te rm wa s inte nde d to me a n whe n de te rmining the minimum le ve l o f de ta il tha t sho uld b e re po rte d, the g uida nc e in Sta te me nt 34 sho uld b e a pplie d to de te rmine the minimum le ve l o f de ta il fo r tho se re po rting re q uire me nts. T he re fo re , g o ve rnme nts ma y pro vide fund b a la nc e info rma tio n a t a mo re de ta ile d le ve l witho ut a lso ha ving to do so fo r e xpe nditure s.
17
18
19
I F ) to e nc o ura g e e c o no mic de ve lo pme nt. T he pro visio ns o f the T I F a g re e me nt a re (a ) b o nds a re issue d b y the g o ve rnme nt to fina nc e infra struc ture impro ve me nts in a spe c ific g e o g ra phic a re a ; (b ) a b a se line fo r sa le s ta x re ve nue s fo r the g e o g ra phic a re a , inc luding the pro po se d de ve lo pme nt, is e sta b lishe d prio r to the sta rt o f the pro je c t; a nd (c ) the a dditio na l sa le s ta x re ve nue s a b o ve the b a se line a re spe c ific a lly se t a side fo r the pa yme nt o f the b o nds. Do the re q uire me nts o f Sta te me nt No . 77, T ax Ab ate me nt Disc lo sure s, a pply to this T I F a g re e me nt?
his a rra ng e me nt do e s no t me e t the de finitio n o f a ta x a b a te me nt unde r Sta te me nt 77 fo r se ve ra l re a so ns. I t is no t a n a g re e me nt with a n individua l o r e ntity. Co nse q ue ntly, the re a re no individua ls o r e ntitie s tha t a re re q uire d to pe rfo rm a ny a c tio ns. F urthe rmo re , the T I F a g re e me nt do e s no t re sult in a re duc tio n o f the g o ve rnme nt’ s ta x re ve nue s. Ra the r, the a dditio na l ta x re ve nue s in the T I F a re a a re e a rma rke d fo r de b t se rvic e o n the b o nds. I t sho uld b e no te d tha t the na me o f the tra nsa c tio n is no t re le va nt to the de te rmina tio n o f whe the r it is a ta x a b a te me nt fo r fina nc ia l re po rting purpo se s. A tra nsa c tio n e ntitle d T I F , Payme nt in L ie u o f T axe s, o r as-o f-rig ht ag re e me nt, fo r e xa mple , do e s no t a uto ma tic a lly inc lude o r e xc lude the tra nsa c tio n fro m the re q uire me nts o f Sta te me nt 77.
20
21
22
23
24
re q uire me nts o f Sta te me nts 3 a nd 40, a s a me nde d, a nd Sta te me nt 72 ma y b e re po rte d in the sta te me nt o f ne t po sitio n/ b a la nc e she e t using diffe re nt title s. F
e xa mple , so me de po sits a nd inve stme nts ma y b e re po rte d in the sta te me nt o f ne t po sitio n/ b a la nc e she e t a s “c a sh a nd c a sh e q uiva le nts.” (Se e Que stio n 1.26.6 in I mple me nta tio n Guide 2015-1.) Othe rs ma y b e re po rte d in the sta te me nt o f ne t po sitio n/ b a la nc e she e t using title s tha t do no t ide ntify the ir na ture a s de po sits a nd inve stme nts. F
witho ut spe c ific ide ntific a tio n o f the na ture o f the ite m. Re g a rdle ss o f ho w tho se se c uritie s a re title d, if the y me e t the de finitio n o f a n inve stme nt, the y a re sub je c t to the me a sure me nt a nd disc lo sure re q uire me nts o f Sta te me nts 3 a nd 40, a s a me nde d, a nd Sta te me nt 72.
lo tte ry prize winne rs a re sub je c t to the disc lo sure re q uire me nts o f Sta te me nts 3 a nd 40, a s a me nde d, a nd Sta te me nt 72. I f the y a re re po rte d in the g o ve rnme nt’ s fina nc ia l sta te me nts, the y a re sub je c t to tho se re q uire me nts. F urthe r, Sta te me nts 3, 40, a nd 72, a s a me nde d, a pply to de po sits a nd inve stme nts he ld b y a no the r e ntity fo r a g o ve rnme nt—fo r e xa mple , a mo unts he ld b y fisc a l a g e nts fo r b o nd pa yme nts a nd re se rve s—if the y a re re po rte d o n the fa c e o f the g o ve rnme nt’ s fina nc ia l sta te me nts.
25
c o mpo ne nt units inc lude d in a re po rting e ntity’ s fina nc ia l sta te me nts, a ltho ug h the ma nne r in whic h the y a re a pplie d sho uld c o nside r the re q uire me nts o f Sta te me nt 14, a s a me nde d. Spe c ific a lly, Sta te me nt 14 re q uire s tha t disc lo sure s fo r disc re te ly pre se nte d c o mpo ne nt units b e ma de se pa ra te ly fro m disc lo sure s fo r the prima ry g o ve rnme nt a nd its b le nde d c o mpo ne nt units. Applying the re q uire me nts o f Sta te me nt 14 a lso ma y re sult in no t pre se nting disc lo sure s re q uire d b y Sta te me nts 3 a nd 40, a s a me nde d, a nd Sta te me nt 72 fo r so me disc re te ly pre se nte d c o mpo ne nt
mple me nta tio n Guide 2015-1 a b o ut disc lo sure s fo r disc re te ly pre se nte d c o mpo ne nt units.) Disc lo sure re q uire me nts do no t a pply to de po sits a nd inve stme nts tha t a re no t re po rte d in the sta te me nt o f ne t po sitio n/ b a la nc e she e t—fo r e xa mple , a mo unts he ld b y e sc ro w a g e nts o n de b t tha t is re po rte d a s de fe a se d in sub sta nc e in a c c o rda nc e with Sta te me nts No . 7, Advanc e Re funding s Re sulting in De fe asanc e o f De b t, a nd No . 23, Ac c o unting and F inanc ial Re po rting fo r Re funding s o f De b t Re po rte d b y Pro prie tary Ac tivitie s, a s a me nde d.
26
27
b a sic fina nc ia l sta te me nts. T he pla n issue s a sta nd-a lo ne fina nc ia l re po rt pre pa re d in c o nfo rmity with the re q uire me nts o f Sta te me nt 67, a s a me nde d. Do e s the c ity ha ve to a pply a ll the re q uire me nts o f Sta te me nt 67, a s a me nde d, fo r the pe nsio n trust fund?
pla n in sta nd-a lo ne fina nc ia l sta te me nts a nd in c irc umsta nc e s in whic h the pla n is inc lude d a s a pe nsio n trust fund o f a no the r g o ve rnme nt, fo r purpo se s o f inc luding the pe nsio n pla n a s a pe nsio n trust fund in the c ity’ s fina nc ia l re po rt, fo o tno te s 9 a nd 11 o f Sta te me nt 67 limit the a pplic a b ility o f the no te disc lo sure a nd RSI re q uire me nts o f tha t Sta te me nt to c irc umsta nc e s in whic h de fine d b e ne fit pe nsio n pla n fina nc ia l sta te me nts a re pre se nte d so le ly in the fina nc ia l re po rt o f the c ity. T he re fo re , b e c a use a sta nd-a lo ne pla n fina nc ia l re po rt is pre pa re d in c o nfo rmity with the re q uire me nts o f Sta te me nt 67, a s a me nde d, tha t Sta te me nt do e s no t re q uire tha t the c ity inc lude the info rma tio n ide ntifie d in the de ta ile d disc lo sure a nd RSI re q uire me nts o f Sta te me nt 67, a s a me nde d, a s pa rt o f its pre se nta tio n o f the pe nsio n pla n a s a pe nsio n trust fund in its fina nc ia l re po rt. Pa ra g ra ph 106 o f Sta te me nt 34, a s a me nde d, re q uire s tha t, in this c irc umsta nc e , the no te s to the fina nc ia l sta te me nts o f the c ity inc lude info rma tio n a b o ut ho w to o b ta in the sta nd-a lo ne pla n fina nc ia l re po rt.
28
29
30
31
Sta te me nt 72?
c o nve rtib le to kno wn a mo unts o f c a sh a nd so ne a r the ir ma turity tha t the y pre se nt insig nific a nt risk o f c ha ng e s in va lue b e c a use o f c ha ng e s in inte re st ra te s. Ge ne ra lly, c a sh e q uiva le nts a re me a sure d a t o the r tha n fa ir va lue (inc luding a mo rtize d c o st) a nd, c o nse q ue ntly, a re no t sub je c t to the fa ir va lue disc lo sure re q uire me nts o f Sta te me nt 72. Spe c ific e xc e ptio ns to fa ir va lue me a sure me nt fo r so me inve stme nts a re de sc rib e d in pa ra g ra ph 69 o f Sta te me nt 72. E xa mple s o f suc h inve stme nts inc lude c e rta in mo ne y ma rke t inve stme nts a nd no npa rtic ipa ting inte re st-e a rning inve stme nt c o ntra c ts, suc h a s c e rta in no nne g o tia b le c e rtific a te s o f de po sit (CDs). I f a c a sh e q uiva le nt is me a sure d a t fa ir va lue , the fa ir va lue disc lo sure re q uire me nts o f Sta te me nt 72 a pply.
32
inte re st-e a rning inve stme nt c o ntra c ts. Wha t disc lo sure re q uire me nts a pply to no npa rtic ipa ting inte re st-e a rning inve stme nt c o ntra c ts?
ha s re de mptio n te rms tha t do no t c o nside r ma rke t ra te s. T ha t fo rm o f CD is a type o f inve stme nt tha t is a de po sit. T he re q uire d disc lo sure s fo r de po sits, suc h a s tho se a b o ut de po sit po lic ie s a nd c usto dia l c re dit risk (pa ra g ra phs 6 a nd 8 o f Sta te me nt 40, re spe c tive ly), sho uld b e ma de .
33
n wha t situa tio ns do e s Sta te me nt 31, a s a me nde d, re q uire o r a llo w de fine d b e ne fit pe nsio n pla ns to re po rt inve stme nts a t c o st o r a mo rtize d c o st?
c o ntra c t g uida nc e fo und in pa ra g ra ph 8 o f Sta te me nt 31, whic h indic a te s tha t no npa rtic ipa ting c o ntra c ts sho uld b e re po rte d using a c o st-b a se d me a sure . T he y a lso c a n a pply the pro visio ns o f pa ra g ra ph 9 o f Sta te me nt 31 tha t a llo w fo r mo ne y ma rke t inve stme nts a nd pa rtic ipa ting inte re st-e a rning inve stme nt c o ntra c ts tha t ha ve a re ma ining ma turity a t the time o f purc ha se o f o ne ye a r o r le ss to b e re po rte d a t a mo rtize d c o st, pro vide d tha t the fa ir va lue o f tho se inve stme nts is no t sig nific a ntly a ffe c te d b y the impa irme nt o f the c re dit sta nding o f the issue r o r b y
34
35
36
a nd ha ng a rs tha t yie ld le a se inc o me .
pla nt a nd a distrib utio n syste m tha t pro duc e s inc o me fro m the sa le o f wa te r.
wa te rwa y tha t pro duc e s inc o me fro m le a se d e a se me nts.
37
38
hre e flo o rs a re o c c upie d b y c ity a g e nc ie s, a nd two flo o rs a re le a se d to a re ta il me rc ha nt fo r the so le purpo se
he c la ssific a tio n o f the o ffic e b uilding de pe nds o n the unit o f a c c o unt de te rmine d b y the c ity’ s a c c o unting po lic y tha t re fle c ts the le ve l o f a g g re g a tio n o r disa g g re g a tio n o f the c ity’ s re a l e sta te pro pe rtie s fo r me a sure me nt, re c o g nitio n, a nd disc lo sure purpo se s. I f the unit o f a c c o unt is the b uilding , the b uilding wo uld no t me e t the de finitio n o f a n inve stme nt b e c a use the pre se nt se rvic e c a pa c ity o f the b uilding is no t b a se d so le ly o n its a b ility to g e ne ra te c a sh. I n tha t c irc umsta nc e , the b uilding wo uld b e c la ssifie d a s a c a pita l a sse t. I f the unit o f a c c o unt is individua l flo o rs, the flo o rs o c c upie d b y the c ity sho uld b e c la ssifie d a s c a pita l a sse ts, a nd the le a se d flo o rs tha t me e t the de finitio n o f a n inve stme nt sho uld b e c la ssifie d a s suc h.
39
40
41
42
43
44
45
46
47
e vious slide ) T
48
49
50
51