GASB Statement no. 54
Upcoming SlideShare
Loading in...5
×
 

GASB Statement no. 54

on

  • 2,566 views

Bohnsack & Frommelt, LLP presentation on GASB Statement 54 at Red Oak, Iowa for IASBO Chapter

Bohnsack & Frommelt, LLP presentation on GASB Statement 54 at Red Oak, Iowa for IASBO Chapter

Statistics

Views

Total Views
2,566
Views on SlideShare
2,166
Embed Views
400

Actions

Likes
0
Downloads
7
Comments
0

1 Embed 400

http://governmentalservice.com 400

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

GASB Statement no. 54 GASB Statement no. 54 Presentation Transcript

  • GASB Statement No. 54 and Iowa School Districts
  • Agenda
    Provide a brief overview of GASB Statement No. 54 “Fund Balance Reporting and Governmental Fund Type Definitions”
    Governmental Fund Types
    Fund Balance Categories
    Discuss Implementation in Iowa School Districts
    2
  • GASB Statement No. 54
    Why?
    Two overall changes to financial reporting:
    Revised/Clarified definitions of governmental funds
    Changed fund balance reporting
    Effective for June 30, 2011
    No effect to the proprietary funds (enterprise funds or internal service funds) or fiduciary funds
    No effect to government-wide statements
    3
  • GASB Statement No. 54
    General Fund: to account for and report all financial resources not accounted for and reported in another fund
    Special revenue funds: specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects
    Student Activity Fund
    Management Levy Fund
    Capital projects funds: financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets
    Physical Plant and Equipment Levy Fund-previously reported as a special revenue fund is now a Capital Projects Fund, Fund 36.
    Capital Projects Fund
    4
  • GASB Statement No. 54
    Debt service funds: financial resources that are restricted, committed, or assigned to expenditure for principal and interest
    Permanent funds: financial resources that are restricted to the extent that only earnings, and not principal, may be used for the District’s programs
    5
  • GASB Statement No. 54
    Nonspendable
    Restricted
    Committed
    Assigned
    Unassigned
    6
  • GASB Statement No. 54
    Nonspendable: Not in a spendable form
    Cannot ever be spent: inventories or prepaid items
    Cannot currently be spent: Long-term portion of loans receivable or assets held for sale
    If the proceeds must be used for a specific purpose, classify based on the constraint
    Other long-term receivables are usually offset by the deferred revenue liability and there is no fund balance as a result
    Legally or contractually required to be maintained intact-permanent fund principal
    7
  • GASB Statement No. 54
    Restricted-externally imposed
    External: Creditors, grantors, contributors or laws or regulations of other governments, such as the State
    Difference between restricted fund balance and restricted net assets on the government-wide
    Committed
    Highest level of decision-making authority (Board)
    MUST be committed by the Board prior to year-end, must be documented
    Assigned
    May be established by the governing body itself or the governing body may delegate this to an official (Superintendent or Business Manager) or another body within the organization (Finance Committee)
    Cannot be negative
    8
  • GASB Statement No. 54
    Unassigned
    Only allowed a positive unassigned fund balance in the General Fund
    Other governmental funds may report deficit balances as unassigned
    Remember, cannot report an assignment for an amount to a specific purpose if the assignment results in a deficit unassigned fund balance
    Classification
    Determine nonspendable amounts first.
    Apply the District’s policy for whether restricted or unrestricted amounts have been spent when an expenditure is incurred and both types of resources are available.
    Next, apply the District’s policy for use of committed, assigned or unassigned.
    Deficit position: Eliminate any amounts assigned and if residual is still negative, then report a deficit unassigned amount
    9
  • Stabilization Arrangements
    Formally setting aside amounts for use only in certain specific circumstances
    Reported as restricted or committed
    The formal action taken for setting aside the amounts specifies the circumstances for use and organization must prove non-routine nature
    If the formal action is not sufficient, the fund balance is reported as unassigned
    10
  • Implementation
    Establish District policies
    Committed fund balances-need Board approval prior to June
    Assigned fund balances-need to determine the body or official authorized to make assignments and the policy that delegated entity is to follow
    Flows: In what order will the resources be used?
    Start now with the prior year audit reportand determine the fund balance reporting
    Draft the footnote disclosures based on the policies that have been adopted
    11
  • Implementation
    Student Activity Special Revenue Fund
    Reported as restricted net assets on government wide statements
    Fund balance is restricted
    Management Levy Special Revenue Fund
    Reported as restricted net assets on government wide statements
    Source of revenue is the levy annually certified by the District
    Fund balance is restricted
    PPEL Capital Projects Fund
    Reported as restricted net assets on government wide statements
    Source of revenue is the levy annually certified by the District
    Fund balance is restricted
    Capital Projects Fund
    Reported as restricted net assets on government wide statements
    Statewide sales and service tax
    Fund balance is restricted
    12
  • Implementation
    Debt Service Fund
    Reported as restricted net assets on government wide statements
    Source of revenue is the levy specifically approved by voters
    Fund balance is restricted
    General Fund
    Categorical funding-restricted
    May have Committed and/or Assigned
    13
  • 14
  • 15
  • General Fund example
    FY 2010 Fund Balance=$7,935,158
    Any Nonspendable? Prepaid items
    Any Restricted? Federal and state programs
    Any Committed? None
    Any Assigned? Federal and state programs
    What is the Unassigned Balance?
    16
  • Sarah Bohnsack, Partner
    563.343.9595
    Sarah@governmentalservice.com
    Mia Frommelt, Partner
    913.660.3931
    Mia@governmentalservice.com
    17