FINANCIAL DATA TRANSPARENCY ACT (FDTA) OF 2022
The Financial Data Transparency Act (FDTA) is designed to modernize the collection and dissemination of financial data by federal financial regulators, making that information more accessible, more uniform, and ultimately more useful to investors and consumers through the MRSB. This legislation is being proposed by US Senator Warner from Virginia and Senator Crapo from Idaho, known as SB4295. It is currently being considered as part of the federal defense authorization legislation which must be passed by the end of the year. Section 203 of the legislation requires the MSRB to establish uniform reporting requirements for financial reporting of data from issuers. This mandate would require all governments to use this uniform reporting without providing for funding to implement this disclosure. There is also not a requirement that these disclosures be in accordance with GASB issued GAAP.
The Government Finance Officer’s (GFOA) has created a website and provided a podcast outlining the issues and concerns with the proposal. Please take time to educate yourself and if you feel inclined to reach out to our elected Senators. Timely reaching out to our Senators is important since they must pass the federal defense authorization by the end of the year. Please reach out to Bret Brodersen the Professional Rules and Operational Standards Chair at firstname.lastname@example.org if you have any questions.
GFOA website Link: New Financial Reporting Requirements for Governments Proposed in U.S. Senate: A Costly and Burdensome Unfunded Mandate (gfoa.org).
GFOA Podcast: The Financial Data Transparency Act: What GFOA Members Need to Know by GFOA (anchor.fm)
Information on the FDTA from Senator Warner’s website: data-transparency-act-fact-sheet.pdf .
Template Letter Opposed to Finanical Data Transparcney Act inclusion in defense authorization act 10042022
WFOA Seeking Member to Join the Local Government Advisory Committee (LGAC)
WFOA is seeking to fill a vacant member position (one of three) on the LGAC. We are seeking an active WFOA member who is interested in providing valuable review, feedback and recommendations to the Washington State Legislature, SAO, and GASB. The committee meets three time per years, to review and respond to proposed financial policy changes at the State and Federal level and provides advice to the SAO on matters related to uniform financial reporting to cities and counties. Further information can be found here Local Government Advisory Committee .
Interested WFOA members, please send a letter of interest to Dale Hough, Lacey Fire District 3, 1231 Franz St SE, Lacey WA 98503, (360) 258-2310, email@example.com. Be sure to include your employment history summary and a statement as to your interest in this position.
Professional Rules and Operational Standards Committee Meeting
The Professional Rules and Operational Standards Committee will be having a virtual meeting at 1:00 PM on August 11, 2021 to discuss and review the GASB Exposure Draft amending GASB Statement No. 62. Parties that are interested in participating in the session please contact the PRO Chair Bret Brodersen at firstname.lastname@example.org.
Accounting Changes & Error Corrections
Comments regarding the ‘Accounting Changes and Error Corrections’ statement No. 62 are due by August 31, 2021. Additional information can be found at the link below.
GASB Exposure Draft—Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62
Long-Term Care and Support Tax
Washington State House Bill 1087 which passed in 2019 established the new Long-Term Care and Supports Trust Program to help with in-home care or assisted living expenses when an individual is unable to care for themselves. The program will be funded through a payroll tax or “premium” of 0.58% of gross income paid by the employee. Employers will be required to begin this payroll deduction from employees’ gross pay beginning January 1, 2022. From the employer side, many of the logistical parts of the new program have not been finalized, but here is what is known about the program at the moment.
What the Program Provides
The Long-Term Care and Supports Trust Program provides a maximum of 365 benefit units to qualified individuals. Benefit units will be paid at $100 per day meaning a lifetime benefit of $36,500. The $100 per day will be adjusted annually at no greater than the Washington state consumer price index. Benefit units cover long-term services and supports including, but not limited to: adult day services, care transition coordination, memory care, home delivered meals, in-home personal care, and assisted living services. Benefits do not begin until January 1, 2025.
Who Qualifies for Benefits
A qualified individual under the program is an individual who has paid the long-term services and supports premiums for the equivalent of either:
- A total of ten years without interruption of five or more consecutive years; OR
- Three years within the last six years from the date of application for benefits
In addition to paying the long-term services and supports premiums for the periods above, in order to qualify for benefits an individual must:
- Have worked at least five hundred hours for each of the years required above,
- Reside in the state of Washington,
- Meet the minimum level of assistance with activities of daily living
- Have not exhausted the lifetime limit of benefit units
Ability for Employees to Opt Out of Program
The legislation gives individuals the ability to opt out of the program if they demonstrate they have long-term care insurance. The original legislation did not provide details on this process, but HB 1323, if passed in the current session of the legislature, provides clarity. An employee who wishes to apply for an exemption from the program must:
- Attest they have long-term care insurance purchased before the effective date of the act (Employment Security Department (ESD) is not required to verify)
- Apply with ESD from October 1, 2021 through December 31, 2022
ESD has not yet released information on the application process. Employees eighteen years or older may apply. Approved exemptions will not be effective until the first day of the quarter immediately following the approval, and the employee is not entitled to refunds for premiums collected before the effective date. Exempt employees must provide current and future employers written notification of an approved exemption and will not be entitled to a refund for premium deductions made before notification is provided to the employer. Employers must retain written notifications of exemptions received from employees. It is important to note that an individual who applies for and receives an exemption can never qualify for benefits in the future.
There are certain individuals who may wish to opt out of the program and purchase an individual policy:
- Individuals who do not plan on retiring in Washington State and therefore will not be able to receive the benefit.
- Individuals, particularly higher wage earners, who may be able to find better, more competitive long-term care insurance plans compared to what they would be paying for under the state plan.
- Individuals who plan on retiring in less than 10 years and would most likely not receive the benefit.
Reporting and Premium Remittance
The long-term care taxes will be remitted to ESD. Although ESD has not released any information on its website, it is likely that the long-term care tax will be treated similarly to unemployment and paid family medical leave with reporting and tax remittance occurring quarterly.
The GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB) ISSUES EXPOSURE DRAFT EXAMINING COMPENSATED ABSENCES PROJECT NO. 4-7
The Government Accounting Standards Board (GASB) is accepting public comments on three reporting standards changes which will have an impact on the preparation of financial statements for state and local governments comments will be accepted through June 4, 2021. The Professional Rules and Operational Standards Committee will be having a meeting in late April reviewing the exposure draft and the potential impacts to statement preparers. If you are interested in participating please contact the PROS chair Bret Brodersen at email@example.com.
GASB Proposes Changes that will Impact Washington Financial Statement Preparation
The Government Accounting Standards Board (GASB) is accepting public comments on three reporting standards changes which will have an impact on the preparation of financial statements for state and local governments.
GASB Draft reporting model improvements Project 3-25
GASB Revenue and Expense Recognition 4P-6
GASB Recognition of Elements of Financial Statements Project 3-20
Finance staff are encouraged to review the proposed changes and provide comments to the GASB by the February 26 deadline.
Below is a letter template that can be used to respond to GASB.
sample template GASB Exposure Draft
The GASB is FREE CPE Webinars on the Preliminary Vies, Revenue & Expense Recognition Project.
GASB is hosting a series of webinars on the Preliminary Views, Revenue and Expense Recognition.
The dates are Tuesday, October 27th; Thursday, November 12th; Thursday November 19th; and Thursday, December 10th and here is the link to register for this series GASB Webinar Series on the Preliminary Views, Revenue and Expense Recognition
We hope you can take advantage of this free training opportunity.
added by Bret Brodersen 09/30/2020