1. NASACT Webinar GASB 53 – the Top 10 Things You Should Worry About Now Eric S. Berman, MSA, CPA Deputy Comptroller of Massachusetts April 14, 2010

2. In Descending Order 10.Do I understand GASB 53 and how it applies to my government? 9.Do I have the policies and procedures in place to report new and existing derivative activity from agencies and component units? 8.Do I have a third party engaged for valuing my derivatives as of my statement of net assets date?

3. In Descending Order 7.Do I have an inventory of all types of derivatives, including those used in operations, pension and OPEB investments, foundations, as well as debt as of the statement of net assets date? 6. Do I have any policies and procedures on which method is to be used on calculating effective or ineffective hedges? (Recommendation 1 method if at all possible!) 5.Has a dry run been done on the footnote information?

4. In Descending Order 4.Do I know of any contingent features of the derivatives – including the governments obligation to post collateral if the credit quality of the hedgable item declines? 3.Do I know of any hybrid instruments – where a borrowing exists within an interest rate swap?

5. In Descending Order 2.Do I have any sort of up-front payments associated with any derivative or financial instrument? And the number 1 thing I need to worry about…..

6. In Descending Order DO I HAVE ENOUGH TIME?

7. Questions? Eric S. Berman, MSA, CPA Deputy Comptroller of Massachusetts 617-973-2602 Eric.berman@state.ma.us