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9:00 - 9:25 Breakfast and Registration
9:25 - 9:30 Welcome and Introduction
9:30 - 10:30 Single Audit Update and Common Findings
10:30 - 11:30 Getting Ready for GASB 74 and GASB 75 Implementation
(Mary Beth Redding – Bartel Associates)
11:30 - 12:30 Lunch
12:30 - 1:30 Municipal Accounting Threats and Revenue Opportunities
(Mark Moses - Regional Government Services)
1:30 - 2:30 GASB 74 and 75 – Preparing for Implementation, Disclosure, and the Audit
2:30 - 3:00 Snack Break
3:00 - 4:00 GASB Update
4:00 - 5:00 Cyber Security Update for Local Governments
5:00 - 5:15 Open Questions / Wrap Up

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❖Uniform Guidance
❖2017 Compliance Supplement Status
❖Grant Agreement Dates
❖Single Audit Threshold
❖Type A/B Threshold
❖Indirect Costs
❖Compensation/Salary
❖Schedule Of Expenditures Of Federal Awards (SEFA) – Auditee
Responsibilities

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❖Internal Control
❖Subrecipient Monitoring Documentation
❖Procurement Standard
❖State Controller’s Office Reporting Package
❖Single Audit Report and Common Findings
❖Additional Resources

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Web-link: http://www.ecfr.gov/cgi-bin/text-
idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl

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Tip: As an auditee, utilize this document to achieve the goal
of an unmodified audit report with no findings on
compliance.

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SOURCE: HTTP://WWW.ECFR.GOV/ AND SEARCH TITLE 2 CHAPTER II PART 200
PDF VERSION: HTTP://WWW.GPO.GOV/FDSYS/PKG/FR-2013-12-26/PDF/2013-30465.PDF

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25.
EFFECTIVE FISCAL YEAR ENDING JUNE 30,
2016 (Calendar Year End December 31, 2015)

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Schedule of Expenditures of Federal Awards (SEFA)

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Schedule of Expenditures of Federal Awards (SEFA)

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Federal Grantor/Pass Through Grantor/Program
Title
Federal
CFDA
Number
Pass Through Entity
Identifying Number
Federal
Expenditures
Expenditures to
Subrecipients
Department of Education Direct Program – Title I
Grants to Local Educational Agencies
84.010 N/A $1,000,000 $800,000

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Notes to the SEFA

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 Internal Controls – a process implemented by a non-Federal
entity, designed to provide reasonable assurance regarding the
achievement of objectives in the following (2 CFR Section
200.61):
a) Effectiveness and efficiency of operations
b) Reliability of reporting for internal and external use; and
c) Compliance with applicable law and regulations

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(Tip – use this as a checklist)

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 Indirect cost rate for the federal award, including if de minimis
rate is charged

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https://www.acquisition.gov/sites/default/files/current/far/html/Subpart%202_1.html

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https://www.whitehouse.gov/omb/grants_docs

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https://cfo.gov/wp-content/uploads/2014/12/Agency-Exceptions.pdf

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• Valuation (Actuarial) Date: Date TOL is measured. (Every 2 years AND
no more than 30 months +1 day prior to FYE.) TOL rolled forward to
Measurement Date.
• Measurement Date: Date NOL is measured. Look back no more than 12
months from FYE. MD is typically OPEB plan’s prior year end.
Valuation Date
June 30, 2015
Employer
Fiscal Year End
June 30, 2018
Plan Year End
(Measurement Date)
June 30, 2017June 30, 2016

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data used by actuaries to calculate OPEB amounts

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 Differences between expected and actual experience

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 Healthcare Cost Trend Rate Sensitivity

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 Discount Rate Sensitivity

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• Change in Deferred
Inflows
• Actuarial
• Employer-calculated
(cost-sharing)

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 CEP = The total payroll of EEs that are provided with OPEB
through the OPEB plan.

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Changes to the GASB 68 Accounting
Valuations

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 Discount rate – no changes in assumptions for MD2016.
However, include upcoming change as a subsequent event
disclosure.

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http://www.gasb.org/jsp/GASB/Page/GASBSectionPage&cid=117616004
2391
https://www.calpers.ca.gov/page/employers/benefit-programs/cerbt
https://www.calpers.ca.gov/page/employers/actuarial-services/gasb

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GASB 73 - Accounting and
Reporting for Pension Plans not
within the scope of GASB 68 and
Amendments to Certain Provisions of
GASB 67 and 68

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GASB 73
• Applies to pension plans not within the scope of GASB 67 and 68,
with certain modifications
• Plans that are not held in trust do not have any assets
accumulated to offset the TPL and there are no separately issued
plan financial statements
• Requires that footnote information similar to GASB 67 and 68 be
included
• Any assets held to pay pension benefits should be reported as
assets of the employer

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GASB 73
• Discount rate – yield or index rate for 20-year tax-exempt bonds with
average rating of AA/Aa or higher
• Clarifies certain provisions of GASB 67 and 68 to provide that:
• Information about investment-related factors that you can control
• Information about external, economic
factors should not be presented (for
example, changes in market prices)

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GASB 77 - Tax Abatement Disclosures
Definition

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GASB 77
promise to forgo tax
specific
action

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GASB 77
• Tax abatements are widely used by state and local governments to
encourage economic development
• Note disclosures required:
• Distinguish between government’s OWN agreements and agreements
by OTHER GOVERNMENTS that affect the reporting entity
• Can be individually disclosed or aggregated
• Organized by abatement type or program (e.g. income tax vs. property
tax incentive)
• Disclosures required from the date of agreement and should continue
through the abatement expiration date

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GASB 77

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 Not a State or Local Government Pension Plan
 Provide benefits to both Government and Non Government
employees
 No identifiable predominate Government employer

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GASB 80 - Blending Requirement for Certain
Component Units
Effective Date: June 30, 2017

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GASB 82 - Pension Issues
Effective Date: June 30, 2017

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DEFERRED INFLOW

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1. Securing the IT environment
2. Managing and retaining data
3. Managing IT risk and compliance
4. Ensuring privacy
6. Managing System Implementations
7. Preventing and responding to computer fraud
10. Managing vendors and service providers
http://www.aicpa.org/InterestAreas/InformationTechnology/Resources/TopTechnologyInitiatives/Pages/2013TTI.aspx
Orange text are all
PCI related

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Determine
Objectives
Assess
Risk
Apply
Controls
Assess
Controls
Monitor

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Source: Internal Control Guidelines California Local Agencies 2015 SCO

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Categorize
Select
Implement
Assess
Authorize
Monitor

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Categorize
Select
Implement
Assess
Authorize
Monitor

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Categorize
Select
Implement
Assess
Authorize
Monitor

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Categorize
Select
Implement
Assess
Authorize
Monitor

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the controls are
implemented correctly, operating as intended, and producing the
desired outcome
Categorize
Select
Implement
Assess
Authorize
Monitor

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Categorize
Select
Implement
Assess
Authorize
Monitor

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Categorize
Select
Implement
Assess
Authorize
Monitor

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“Ransomware is a type of malware installed on a computer or
server that encrypts the files, making them inaccessible until a
specified ransom is paid. Ransomware is typically installed
when a user clicks on a malicious link, opens a file in an e-mail
that installs the malware, or through drive-by downloads
(which does not require user-initiation) from a compromised
Web site.” Source FBI

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• Local Government

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You have been hit. Now what?

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Mission
Business Unit
IT
Security
Audit

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http://www.mazeassociates.com/maze-live-survey/