GASB 34A 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 accountabilityOperational accountability

GASB 34 Improves Financial Accountability

Focus on major individual funds

Focus on major individual fund budgetsInclusion of data from the original

budget

GASB 34 Improves Operational Accountability

Introduction of district-wide financial

statements

Expanded focus for district

activitiesPresentation 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 ModelImprovements 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

THE END