GASB 34 A New Governmental Financial Reporting Model

Different Financial Reporting Models  Business Enterprise-FASB GASB  Not-for-profit organizations  State and local governments

Why are we doing this?  Because we have to. 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.

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 of data from the original budget

GASB 34 Improves Operational Accountability  Introduction of district-wide financial statements  Expanded focus for district activities  Presentation of cost data  Narrative 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 capital asset and long-term debt activity  Any 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 Fiscal Accountability Improvements Designed to Enhance Operational Accountability Narrative overview & analysis No narrative required Budgetary comparisons report both original and final amended budget Budgetary comparisons report only final amended budget Cost data provided for governmental & business- type activity Cost data available only for business- type activities Budgetary comparisons presented for general fund and individual major special revenue funds Budgetary comparisons aggregated by fund type District-wide financials provide long- term focus for district activities District activities limited to near- term inflows & outflows of spendable resources Financials presented separately for major governmental and enterprise funds Information in basic financials aggregated by fund type Introduction of district-wide financials All reporting based on funds and fund type New ModelPrevious ModelNew ModelPrevious Model

What is left to do?  Review fixed assets  Reclassify Capital Assets into a GASB 34 format  Develop the Management Discussion & Analysis

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