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LGC UPDATE2012 NCGFOANCGFOA SummerSummer ConferenceConference.Sharon Edmundson Announcements Reminders Auditing and Reporting Issues Coming Attractions ANNOUNCEMENTS REMINDERS. Introductions Welcome Staff Changes o Tabitha Mbaka left at the end of March 2012o Her position has not yet been filledo Alexia Forte is leaving at end of July 2012.o In Debt Management Ken Durham will be retiring this October ANNOUNCEMENTS REMINDERS New State Treasurer s website is up and runningo Please note that old bookmarks will not work 2011 Audit Process was big hit and will continue for.2012 changes on your side will be minimal o Will still use commercial portalo Data input sheets will be downloaded from Treasurer swebsite rather than from portalo Changes to an audit will NOT be accepted piecemeal .Entire audit must be resubmitted rather than insertingindividual pages ANNOUNCEMENTS REMINDERS Invoice processing for 2012 will be the same as Notice of approvals to units and auditors will be.received via email Memo with updated 2012 instructions forprocessing audits is coming in August Illustrated statements for 2012 will be posted toweb very soon Charter schools and Boards of.Ed currently available ANNOUNCEMENTS REMINDERSBest way to stay informed is through listserv May want multiple people on your staff registered incase you are out of the office .Please give Sharon Rita or Amy a business card or send usan email if you wish to be registered ANNOUNCEMENTS REMINDERS New fiscal year Units with debt applications going before the LGC starting.in November 2012 will need to have 2012 audit completedand final statements submitted to SLGFD by October 15 Please begin conversations with your auditor and the DebtManagement Section if you anticipate seeking debtapproval in the November to January timeframe.o The opinion financial statements notes and supplementalschedules are required compliance audits can be delayedMark your calendar and notify your auditor Tim Romockiif issuing debt in October November or December of 2012 ANNOUNCEMENTS REMINDERS. Unit letter responseso Address each concern raised in the lettero Include specific action taken to address each concerno Back up actions with summary data if possibleo Our letter and your response go to the LGC with any.debt applications for approval ANNOUNCEMENTS AFIR REDESIGN In the final stages of new AFIR design Field tested by both municipalities counties Fiscal Year Data for 2012 will be collected using.the new AFIR process Specific instructions will go out in August 2012regarding the new process Will be training materials available to guide youthrough the new form. ANNOUNCEMENTS AFIR PROCESS US Census supported website Download Excel Worksheet to your PC When completed upload Excel file to thesame US Census website. ANNOUNCEMENTS AFIR FORM Designed to tie to your o Revenue Expenditure and Change in Fund BalanceStatement ando Revenue Expense and Change in Net Asset.Statement Units enter data and balance into the form ateither the Fund level or Fund Type level so itwill be easier to keep funds in balance with thefinancial statements . ANNOUNCEMENTS AFIR FORM continued There are fewer revenue and expenditurecategories so there will be more items in other Many of the Revenue items that are accessible.on the Department of Revenue s website are nolonger broken out in a separate line item on the Cities and counties now use the same form ANNOUNCEMENTS AFIR FORM continued This year will be two versions one each for.municipalities and counties with only differencebeing that each is crosswalked to the old AFIR field testers found this helpful in learning the AFIR no longer has the previous year s data onit but does have beginning balances for the.White Goods and School Capital Outlay sections AUDITING AND REPORTING ISSUES Cost Allocations vs Transferso Cost allocations should be treated asreimbursements to reduce the cost of operations It.is not revenue it is a contra account o Transfers are a gift of financial resources orequipment they will be treated as revenue OFS tothe receiving fund AUDITING AND REPORTING ISSUES. Treatment of PILOTs Payments in Lieu of Taxeso Payments to compensate the general government forpublic services rendered based on tax rateo Should be classified as transfers nonreciprocalinterfund activity in the enterprise operating statement .Please classify as Transfer Payment in lieu in both AUDITING AND REPORTING ISSUES Budgets should be presented at FYE as theystood at June 30 regardless of any subsequentbudget amendments .o Those subsequent amendments may improvethe legal standing of the Board and thefinance officer for purposes of compliance toGS 159 25 and 159 28o Financial statements should be presented as.of June 30 AUDITING AND REPORTING ISSUES GASB 54 Issueso RSS is reported on both government wide andgovernmental funds statements in equity.o The cash component of RSS must be restricted onboth statements Powell bill cash must be restrictedon government wide statementso On governmental funds statement no fund but GFcan have positive unassigned fund balance.o Failure to include fund balance policy statement anddiscussion of treatment of encumbrances AUDITING AND REPORTING ISSUES GASB 54 Issues continuedo Capital Reserves caused problems in 2011.o If they are being reclassified as capital projects be sure to titleo If they are consolidated into the General Fund be sure to showa reconciliation in the front and a budget in the supplementaryo Capital reserve is a statutory title with strict requirements aboutbudgeting and the budgeting and use of funds. AUDITING AND REPORTING ISSUES E 911 Fundso Problematic for last several years because ofdifferences between the audited fund and the PSAPRevenue and Expenditure report that is filed with the.o Continue to work with 911 staff to find a workableo In 2011 we published in IFS an example of a detailedfund schedule that would allow 911 staff to reconcileaudited fund to PSAP reporto Feedback from units was mostly negative. AUDITING AND REPORTING ISSUES E 911 Fundso For 2012 units can use the detailed example OR goback to a more summarized format similar to otherfunds in the unit.o Units are asked to complete a reconciliation betweenthe audit and the report filed with 911 Board if auditdoes not agree with PSAP Revenue and Expenditureo Why Fiscal Research and Legislators look at auditsand data from 911 Board and see the differences.o Handout of fund statements and sample reconciliation AUDITING AND REPORTING ISSUES E 911 Fundso 62A 46 b1 Effective July 1 2011 Carryforward A PSAPmay carry forward distributions for eligible expenditures for.capital outlay capital improvements or equipment replacement Amounts carried forward to the next fiscal year from distributionsmade by the 911 Board may not be used to lower thedistributions in subsection a of this section unless the amountis greater than twenty percent 20 of the average yearly.amount distributed to the PSAP in the prior two years The911 Board may allow a PSAP to carry forward a greater amountwithout changing the PSAP s distribution AUDITING AND REPORTING ISSUES E 911 Fund.o There is no pre purchase approval required for purchasesmade with wireless 911 money staff is available to assistif you have questions and they encourage you to call ifthere are questions about a purchase o Can transfer wireless 911 funds out of ETS Fund but will.need to explaino Typical example is transferring to a capital project fundwhere some of the purchases are being funded with911 funds o Any wire line funds that remain in your ETS Fund MUST.be transferred out and can be used for any purpose AUDITING AND REPORTING ISSUES Calculation of Tax Collection Percentageo Worked with the SOG and the Tax Collectors Association to ensure that collection percentage.calculation is standardized and in compliance with theGeneral Statuteso Units can use other methods of calculating thepercentage for internal uses such as performanceo Method to be used for financial statement.presentation and for budgeting purposes is as shownin 2012 Illustrative Financial Statementso See handouts AUDITING AND REPORTING ISSUES Included in collection percentage calculation .o Current year taxes received Not included in collection percentage calculation o Interesto Late listing discovery penaltieso Service fees.o Advertising costso Any other costs of collection Included in the current year levy o Unit wide taxes only no special districts includedo Discoveries made through December 31 of the fiscal year. DEPOSIT AND INVESTMENT ISSUES LGC 203 is a semiannual requirement June 30 andDecember 31 LGC 203 for June 30 2012 due to be filed by July 25 o Late letters will not go out until third week of August. Form has been revised DO NOT USE ANY EXCELWORKBOOK EARLIER THAN THE REV 12 11VERSION preferably you will use the Rev 6 12o This workbook has the dropdown lists for unit name andbank name If you cannot find your name or bank please call the office . DEPOSIT AND INVESTMENT ISSUES INV 91 is an annual requirement for the June filing o INV 91 for June 30 2012 due to be submitted to yourdepository with a copy filed with our office BYAUGUST 24 2012 for each bank .o Most efficient and effective to send along with yourLGC203 forms and documentationo Allows DST staff to match local government depositaccounts to information provided by their depositories o This is necessary to ensure that local government funds.are sufficiently collateralized DEPOSIT AND INVESTMENT ISSUES Be cautious with investments offered with ratesof return significantly higher than what appearsto be available in the markets . Remember Safety Liquidity then Yield Avoid any investment you do not understand Questions Call our office at 919 807 2381 COMING ATTRACTIONS Memo on tax collection percentage calculation. Reporting Issues memo Retirement rate and other disclosure data memo Remaining Illustrative Financial Statementso Schools and Charters on the websiteo Dogwood complete.o Carolina County in final stageso Housing Authority being updated now Detailed instructions on new AFIR Detailed instructions on retrieving data input sheets for 2012 audits Questions . Thank you Together we can build and maintain a fiscally strong and prosperous North Carolina www NCTreasurer com sara shippee nctreasurer comNotice of approvals to units and auditors will be received via email. ... Worked with the SOG and the Tax Collectorsâ€™ Association to ensure that collection percentage calculation is standardized and in compliance with the General Statutes. ... This is necessary to ensure that local government funds are sufficiently collateralized.