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Fiduciary Activities – Reporting Standards Update
The Governmental Accounting Standards Board (GASB) has released and Exposure Draft of the Proposed Implementation Guide- Fiduciary Activities!
Check out the proposed implementation guide here: Exposure Draft – Proposed Implementation Guide, Fiduciary Activities
- Exposure Drafts are open for public comment. Written comments are due February 28, 2019.
The Exposure Draft is related to the implementation of GASB Statement No. 84 – Fiduciary Activities, which is effective for reporting periods beginning after December 15, 2018. The financial reports will be impacted as follows:
|Fiscal Year End||Financial Reporting Year|
|December 31st||1/1/19 – 12/31/19|
|June 30th||7/1/19 – 6/30/20|
|August 31st||9/1/19 – 8/31/20|
The Exposure Draft of the Proposed Implementation Guide- Fiduciary Activities contains several questions and answers related to the Statement and are subject to final review by the GASB Board based on feedback received via written comments.
Added January 7, 2019; By: Stacie Tellers
*FREE* Moss Adams Webcast – Leases
Moss Adams is providing a FREE webcast regarding the Governmental Accounting Standards Board’s (GASB) Statement Number 87, Leases, which significantly changes accounting and reporting requirements for lease arrangements. The standard is effective for reporting periods beginning after December 15, 2019, meaning it’s a good time to begin planning for implementation.
Join Moss Adams for this FREE webcast addressing important aspects of GASB 87 and its potential impacts on governmental entities—including changes to lease recognition, measurement, and related disclosures for government lessees and lessors. Some key topics they will discuss include the following:
- Overall scope and objectives of the new standard
- Timing, transition, and impacts of the changes on your entity
- Insight into how lessees and lessors can prepare for implementation
This LIVE and FREE webcast will provide 1 CPE for your active attendance in the webcast. Please visit Moss Adams for registration and more details.
Added December 13, 2018; By: Stacie Tellers
*FREE* GASB Webcast – Preliminary Views, Financial Reporting Model Improvements
The Governmental Accounting Standards Board (GASB) has posted the recorded version of their November 7, 2018 webcast that provides information on the proposals in the GASB Preliminary Views, Financial Reporting Model Improvements (Preliminary Views). The areas covered will include:
- Recognition concepts and application for governmental funds, including alternative views
- Presentation of governmental fund financial statements
- Presentation of proprietary fund financial statements
- Budgetary comparison information schedule
- Communication of major component unit information
- Schedule of government-wide expenses by natural classification
- Audience question-and-answer session.
The *FREE* webcast intends to allow participants to gain an understanding of:
- The scope of the proposed improvements to the financial reporting model
The major proposals in the Preliminary Views
How to provide feedback to the GASB on the proposals.
This is a recorded version of the live webcast therefore there is no CPE or live chat functions available. This is a great opportunity to hear from GASB regarding their Preliminary Views on the Financial Reporting Model Improvements! Click here to access the webcast!
Added December 7, 2018; By: Stacie Tellers
FCC Proposes New Rules on Cable Franchise Fees
The NATOA (National Association of Telecommunications Officers and Advisors), WATOA (Washington Association of Telecommunications Officers and Advisors), and AWC (Association of Washington Cities) have provided their association members with vital information regarding the proposed new rules from the Federal Communications Commission (FCC) regarding franchise fees on cable franchises, PEG channels, and other common cable-related obligations in cable franchise agreements.
NATOA has provided a summary of the proposed rules: NATOA Summary on FCC Proposed Rules
The FCC Notice of Proposed Rulemaking can be found here: FCC Website – Notice of Proposed Rulemaking
The proposed rules would change how franchise fees are calculated and could significantly impact the amount of revenues these fees generate:
- Allow all cable-related, in-kind contributions, other than PEG capital costs and build out requirements, to be treated as “franchise fees” subject to the 5% franchise fee cap.
- Prohibit local franchising authorities from regulating the non-cable services offered over cable systems, other than I-Nets, and prohibit LFAs from regulating the facilities and equipment used in the provision of these non-cable services.
- Potentially apply to state-level franchising actions. Unlike the draft FNPRM, which expressly excluded state-leveling franchising actions, the final FNPRM seeks comment on whether the new rules should apply to both state and local franchising actions.
The proposed rules are subject to public comment. Comments are due by November 14. Entities wishing to comment should go to the FCC’s website and reference MB Docket No 05-311.
<Combined from articles released by the NATOA, WATOA, AWC, and FCC
Added November 5, 2018; By: Stacie Tellers
Study of the Studies – an Office of the State Treasurer’s Report on the Idea of a State Bank
The Office of the State Treasurer has published the Study of the Studies report on their website. This report is the culmination of thorough review of all the previous studies completed by other states and municipalities on the topic the “State Bank”.
Access the report here: The Office of the State Treasurer’s Study of the Study
Added November 5, 2018: By Stacie Tellers on behalf of the Office of the State Treasurer
Other Post-Employment Benefits (OPEB) – Employer Reporting Requirements are Happening NOW!
The Governmental Accounting Standards Board (GASB) Statement 75, Accounting and Reporting for OPEB is effective for the Reporting Year 2018 (this year!). What is OPEB? OPEB, or post-employment benefits other than pension, includes benefits such as healthcare provided through a pension plan or separately (medical, dental, vision, hearing, etc.); and other benefits when provided separately from a pension plan such as: life insurance, long-term care, disability, and more.
Statement 75 was issued in June 2015 and establishes accounting and financial reporting requirements by state and local governments for postemployment benefits other than pensions. Statement 75 is the employer reporting statement, GASB issued Statement 74 for the reporting requirements for OPEB Plans (“trusted or in a trust per GASB Standards” OPEB Plans).
Associations across the country have been providing training, implementation guidance, articles, webinar, and more regarding the implementation of the OPEB Statements. In Washington, the Office of the Washington State Auditor (SAO) and the Office of the State Actuary have been working together to provide implementation guidance and tools for Washington governments.
The State Actuary, on November 1st, released its highly anticipated OPEB Calculation Tool! This tool is available to employers who cover their employees under the Public Employees’ Benefit Board (PEBB) ONLY. Employers covered by PEBB can use the tool if they have LESS THAN 100 active and retired employees in the PEBB health insurance (not including covered spouses).
To find out more about the State Actuary’s Alternate Measurement Method Tool, please visit their website: Office of the State Actuary OPEB Information
The State actuary is working on a LEOFF 1 specific tool and plans to release it in early 2019.
SAO has been working hard to provide notes templates, frequently asked questions answers, and additional information in regards to the OPEB Statements. Please visit their website to view all information that could impact your government: Office of the Washington State Auditor OPEB Information
Added November 2, 2018; By: Stacie Tellers
Financial Reporting Model Reexamination Project Field Test: Participants Needed
The Governmental Accounting Standards Board (GASB) is seeking participants for a field test of the standards it will propose in a preliminary views document, Financial Reporting Model Improvements, which is expected to be issued later in September 2018 <Preliminary Views Document>.
The primary objective of the proposed standards is to improve the accounting and financial reporting guidance
A fact sheet describing the benefits of participating in a field test and what participation involves is available on the GASB website. It is anticipated that the field test will be distributed to participating governments in early October 2018. Participants would be expected to complete and return the field test by January 31, 2019.
Governments interested in participating in the Financial Reporting Model Reexamination field test or with questions about the field test should contact GASB senior project manager, Lisa Parker, either by email or by phone at (203) 956-5351.
Added October 2, 2018; By: Stacie Tellers
GASB Survey: Section 457 Deferred Compensation Plans
The Governmental Accounting Standards Board (GASB) is conducting a survey of financial statement preparers regarding Section 457 deferred compensation plans. The survey is part of a GASB research to evaluate current practice and the effectiveness of existing guidance.
The survey is part of a GASB research effort to evaluate current practice and the effectiveness of existing guidance for Section 457 plans.
(Further information about the research effort can be found on the dedicated page on the GASB website).
The survey should take about 10-20 minutes.
The preparer survey can be accessed by following this link https://bit.ly/2xChomf.
If you would like to review the survey before responding, you can download it in its entirety from the first page of the survey. You also can save your survey answers and return to complete the survey later.
The deadline for completing the survey is Friday, October 19, 2018.
Thank you in advance for your feedback. Your input is vital to the GASB’s efforts to improve accounting and financial reporting.
Added September 28, 2018; By: Stacie Tellers
FREE Training (Webinar) Regarding GASB 87 – Leases
The implementation of GASB Statement 87 – Leases is quickly approaching. Are you ready? Do you need more information?
Crowe – a public accounting, consulting, and technology firm, has put together a 55 minute webinar on this very subject. The webinar provides a summary of the statement and is a great resource to help you get started or to get more information.
This webinar is FREE and available on Crowe’s website: Click here to view the webinar
Added September 28, 2018; By: Stacie Tellers
GASB Clarifies Guidance
on Majority Equity Interests
Norwalk, CT, September 4, 2018—The Governmental Accounting Standards Board (GASB) has issued guidance clarifying the accounting and financial reporting requirements for a state or local government’s majority equity interest in an organization that remains legally separate after acquisition.
A public hospital’s acquisition of a rehabilitation center that remains legally separate after acquisition is an example of the type of transaction the new guidance addresses.
Under Statement No. 90, Majority Equity Interests, a government’s majority equity interest in a legally separate organization should be reported as an investment if that equity interest meets the GASB’s definition of an investment. In many instances, a majority equity interest that meets the definition of an investment should be measured using the equity method.
Statement No. 72, Fair Value Measurement and Application, defines an investment as “a security or other asset that (a) a government holds primarily for the purpose of income or profit and (b) has a present service capacity based solely on its ability to generate cash or to be sold to generate cash.”
For a majority equity interest in a legally separate entity that does not meet the definition of an investment, Statement 90 requires a government to report the legally separate entity as a component unit.
Statement 90 also establishes guidance for remeasuring assets and liabilities of wholly acquired governmental organizations that remain legally separate. That guidance brings the reporting of those acquisitions in line now with existing standards that apply to acquisitions that do not remain legally separate.
<Copied from: GASB Media Advisory 09/04/18>
Added September 5, 2018; By: Stacie Tellers
Security and Exchange Commission (SEC) Approves Amendments to Disclosure Rules
The amendments approved by the SEC to the Municipal Securities Disclosures on Monday, August 20th have been 17 months in the making. The two new triggering events that will require issuers to make a public disclosure within ten (10) business days of the event are:
- Any incurrence of a financial obligation of the issuer or obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the issuer or obligated person, any of which affect security holders, if material; and
- Any default, event of acceleration, termination event, modification of terms, or other similar events under the terms of the financial obligation of the issuer or obligated person, any of which reflect financial difficulties.
The term “financial obligation” means:
- (i) any debt obligation (including a lease arrangement that operates as a vehicle to borrow money);
- (ii) any derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or
- (iii) any guarantee of (i) or (ii).
- Note: “financial obligation” does not include the securities in which a final official statement has been provided to the Municipal Securities Rulemaking Board (MRSB)’s Electronic Municipal Market Access (EMMA) that are consistent with Rule 15c2-12. (i.e. the normal bond issuance)
The SEC’s decision to implement the triggering events and amend Rule 15c2-12 is to ensure the timely and public availability of various disclosures regarding municipal securities to the investors in municipal securities and other users of the information via EMMA.
MSRB provides information on all the continuing disclosure requirements (required and voluntary disclosures), training on the EMMA Dataport, deadlines, format requirements, and more. MSRB is working to update their information to incorporate the newest amendments to the disclosure requirements. For access to the MSRB Continuing Disclosures website, click HERE.
For more information regarding continuing disclosure requirements:
- Contact your Municipal or Public Finance attorney.
- Visit MSRB/EMMA
- Visit the SEC Website:
Added August 23, 2018; By: Stacie Tellers
City Business License Update – IMPORTANT DATES BELOW
AWC issued an update in regards to the Business license and City B&O tax simplification issues that were passed in EBH 2005 (RCW 35.90) during the 2017 session. The law included the following:
- Requires cities with business licenses to establish a workgroup to create a model business license with a licensing threshold by July 2018 for adoption by all business license cities by January 1, 2019;
- Requires all cities with business license to administer their business license through the state’s Business Licensing System (BLS) by 2022 or FileLocal by 2020; and
- Establishes a task force on local B&O tax service apportionment under RCW 35.102.130 to report to the Legislature by October 2018.
The FINAL model ordinance has been issued, includes a minimum threshold exemption for required licensing.
All Cities with a business license must adopt the model ordinance by January 1, 2019, however any City already partnered with the State’s Business Licensing Service (BLS) for business licensing administration has a deadline of October 17, 2018 due to the 75-day BLS notice required.
Visit AWC’s website for full details: AWC Business License News
Originally published by: AWC’s Victoria Lincoln, Andrew Pittelkau, & Sheila Gall via the AWC Advocacy News page.
Added July 30, 2018; By: Stacie Tellers
FREE – Webinar on Fiduciary Activities (GASB Statement 84)
Did you miss the Thursday July 12, 2018 FREE webinar from KPMG Institutes on Fiduciary Activities Accounting and Reporting Under GASB Statement No. 84?
As one of the speakers said, “This Statement is small (28 paragraphs) yet mighty”. Fiduciary Activities could have a large impact on an entity’s fiduciary reports.
This webinar provides an overview of the accounting and financial reporting requirements for fiduciary activities as defined in GASB Statement No. 84, discusses key concepts and their potential implications to governments, and provides information on identifying implementation considerations and timelines. To watch the 2 hour webcast, click the link below:
Published by KPMG Government Institute
Added July 13, 2018; By: Stacie Tellers
U.S. Supreme Court Issues Favorable Decision in Remote Sales Tax Case
On June 21, 2018, the U.S. Supreme Court issued a decision in South Dakota v. Wayfair, Inc., overturning the outdated physical presence standard. This long-anticipated decision clears the way for state and local governments to enforce existing sales and use tax laws on remote sales. For well over two decades, GFOA and other state and local government organizations have pursued a simplified framework of sales and use tax administration to address the ever evolving and growing online retail marketplace. Until this year, the focus has primarily been on Congress where organizations like GFOA have advocated for legislation such as the Marketplace Fairness Act. Without the authority to impose current sales and use tax laws on many remote and online purchases, states and local governments have lost billions of vital revenue for public services every year.
Upon release of the decision, GFOA joined others in the state and local government community and issued a statement. “State and local organizations applaud the U.S. Supreme Court’s decision recognizing that the 1992 Quill ruling put Main Street retailers at a competitive disadvantage to remote sellers and the efforts by states to simplify the sales tax collection process and giving those states remote sales tax collection authority. For 26 years Congress has failed to act and through the efforts of Justice Anthony Kennedy, the federal government has finally recognized the changing nature of commerce and state efforts to simplify the collection process.”
Published on GFOA: GFOA Website – U.S. Supreme Court Decision
Added July 3, 2018; By: Stacie Tellers
GASB Establishes New Guidance for Interest Cost
Incurred Before the End of a Construction Period
Norwalk, CT, June 22, 2018—The Governmental Accounting Standards Board (GASB) today released guidance establishing accounting requirements for interest cost incurred before the end of a construction period.
Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, establishes guidance designed to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period. It also simplifies accounting for interest cost incurred before the end of a construction period.
For financial statements prepared using the economic resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expense in the period in which the cost is incurred. Such interest cost should not be capitalized as part of the historical cost of a capital asset.
For financial statements prepared using the current financial resources measurement focus, interest incurred before the end of a construction period should continue to be recognized as an expenditure on a basis consistent with governmental fund accounting principles.
Added July 3, 2018; By: Stacie Tellers
Washington State Paid Family and Medical Leave
Beginning January 1, 2020, many Washington State employees will have access to Paid Family and Medical Leave benefits.
The insurance program (administered by the Employment Security Department) allows workers up to 12 weeks of leave (for eligible purposes) while receiving partial wage replacement benefits.
The Employment Security Department Advisory Committee provides continually updates for employers and employees via their website: WA ESD Paid Family and Medical Leave Homepage
Premium assessments for employers and employees will start on January 1, 2019.
Employers can file for approval of a Voluntary Plan; if their paid family and medical leave benefits provide at least the same benefits as the state plan.
How does this affect your entity? Here is an example provided by the ESD:
Question: What premium responsibilities do I have as an employer?
Answer: A total premium of 0.4 percent up to the social security cap is assessed for each employee. Generally speaking, the employer is responsible for approximately 37 percent of that premium. So if an employee makes $50,000 annually, the total annual assessment would be $200, of which $126.67 would be paid for by the employee, and $73.33 would be paid for by the employer. Employers will be responsible for remitting all premiums collected for Paid Family and Medical Leave to the state. Employers are also required to report hours and wages.
The next Advisory Committee Meeting is scheduled for May 17, 2018 from 10am – 12pm, in Lacey, WA.
The next Rule Making Public Hearing is scheduled for May 23, 2018 at 9am, in Lacey, WA.
For more information: please check out the WA ESD Paid Family and Medical Leave Homepage
By: Stacie Tellers/WFOA Legislation and Professional Standards Committee Chair: firstname.lastname@example.org
Added April 25, 2018; By: Stacie Tellers