Title: GASB Statement No. 34 Cliff Notes
1GASB Statement No. 34 Cliff Notes
- Laurie L. Piccirillo, Business Manager
- Brockway Area School District
- Dr. David M. Piper, Assistant to Superintendent
- Altoona Area School District
2Key Improvements Resulting from the New
Governmental Financial Reporting Model
Improvements Designed to Enhance Operational
Accountability
Previous Model
New Model
All reporting based on funds and fund types
Introduction of government-wide financial
statements
Information on governmental activities limited to
near-term inflows and outflows of spendable
resources
Government-wide financial statements provide
additional long-term focus for governmental
activities
Cost data provided for both governmental and
business-type activities
Cost data available only for business-type
activities
Narrative overview and analysis required in the
form of Managements Discussion and Analysis
No narrative required
3Improvements Designed to Enhance Fiscal
Accountability
Previous Model
New Model
Information in basic financial state-ments
presented separately for major individual
governmental and enterprise funds
Information in basic financial statements
aggregated by fund type
Budgetary comparisons associated with the basic
financial statements presented for the general
fund and individual major special revenue funds
Budgetary comparisons associated with the basic
financial statements aggregated by fund type
Budgetary comparisons report only final amended
budget
Budgetary comparisons report both original and
final amended budget
4Financial Statement Format
- Managements Discussion and Analysis
- Government-Wide Financial Statements
- Fund Financial Statements
- Notes to the Financial Statements
- Required Supplementary Information
- (Other than MDA)
5Effective Dates
- Periods beginning after
- June 15, 2001 for governments with revenues of
100 million or more (Phase 1) - June 15, 2002 for governments with revenues of
10 million or more but less than 100 million
(Phase II) - June 15, 2003 for governments with revenues of
less than 10 million (Phase III) - Early application is encouraged
6Basic Financial Statements
- Government Wide
- Statements of Net Assets
- Statements of Activities
- Fund Financial Statements
- Governmental Funds
- Balance Sheet
- Statement of revenues, expenditures and changes
in fund balance
7- Proprietary Funds
- Statement of net assets or balance sheet
- Statement of revenues, expenses and changes in
fund net assets or fund equity - Statement of cash flows
- Fiduciary Funds
- Statement of fiduciary net assets
- Statement of changes in fiduciary net assets
8- Fund Statements
- Governmental (emphasizing major funds)
- General fund
- Special revenue funds
- Capital projects funds
- Debt service funds
- Permanent funds (legally restricted earnings
only benefit government or its citizenry) - Proprietary funds
- Enterprise funds (emphasizing major funds)
- Internal service funds
9- Fund Statements
- Fiduciary funds
- Pension trust funds
- Investment trust funds
- Private purpose trust funds which are trust
arrangements under which principal or interest
benefit specific individuals, private
organizations and other governments - Agency funds that are limited to net assets held
for a specific other person or entities
10- Fund Statements
- Fund statements presentation
- Major funds
- Non-major funds presented in a single column by
category - Concept of major and non-major funds does not
apply to fiduciary funds and internal service
funds - Major funds criteria
- General fund always major
- Individual fund is major if
- At least 10 percent of assets, liabilities,
revenues or expenditures / expenses (excluding
extraordinary items) of the relevant fund
category of fund type
11- Fund Statements
- Major funds criteria (contd)
- Individual fund is major if
- At least 5 percent of total governmental and
proprietary funds combined - Other funds that are important
- PDE considerations
12Major Fund Determination Worksheet
13- Fund Statements
- Governmental fund statements
- Balance sheet
- Statement of revenues, expenditures and changes
in fund balances - Reconciliation required for both statements
- Current financial resources
- Modified accrual basis
14(No Transcript)
15Reconciliation of the Governmental Funds Balance
Sheet to Statement of Net Assets
16OWEN J. ROBERTS SCHOOL DISTRICTBALANCE
SHEETGOVERNMENTAL FUNDSAS OF JUNE 30, 2002
17OWEN J. ROBERTS SCHOOL DISTRICTRECONCILIATION OF
THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
STATEMENT OF NET ASSETSAS OF JUNE 30, 2002
18Statement of Revenues, Expenditures and Changes
in Fund BalancesGovernmental FundsFor the Year
Ended June 30, 20XX
19Reconciliation of the Governmental
FundsStatement of Revenues, Expenditures and
Changes in Fund BalanceTo the Statement of
Activities
20OWEN J. ROBERTS SCHOOL DISTRICTSTATEMENT OF
REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCESGOVERNMENTAL FUNDSFOR THE YEAR ENDED
JUNE 30, 2002
21OWEN J. ROBERTS SCHOOL DISTRICTRECONCILIATION OF
THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES,AND CHANGES IN FUND BALANCE TO THE
STATEMENT OF ACTIVITIESFOR THE YEAR ENDED JUNE
30, 2002
22- Fund Statements
- Proprietary fund statements
- Economic resources
- Accrual basis
- Enterprise redefined debt / user charge based
- Debt secured solely by pledge of net revenues
from fees or charges - Laws or regulations require recovery of costs
- Pricing policy designed to recover cost
23- Fund Statements
- Proprietary fund statements (contd)
- Statement of net assets / balance sheet
- Classified
- Restricted assets should be reported
- Fund net assets / equity has three
classifications that replace contributed capital
and retained earnings - Invested for capital assets net of related debt
- Restricted
- Unrestricted
24- Fund Statements
- Proprietary fund statements (contd)
- Statement of revenues, expenses and changes in
fund net assets / equity - Distinguish between operating and non-operating
- Capital contributions and transfers reported
separately - Statement of Cash Flows
- Four categories of cash flows
- Operating
- Non-capital financing
- Capital and related financing
- Investing
- Direct method required for operating activities
25Statement of Net AssetsProprietary FundsJune
30, 20_ _
26OWEN J. ROBERTS SCHOOL DISTRICTSTATEMENT OF NET
ASSETSPROPRIETARY FUNDAS OF JUNE 30, 2002
27Statement of Revenues, Expenses and Changes in
Fund Net AssetsProprietary FundsJune 30, 20XX
28OWEN J. ROBERTS SCHOOL DISTRICTSTATEMENT OF
REVENUES, EXPENSES, AND CHANGES IN FUND NET
ASSETSPROPRIETARY FUNDFOR THE YEAR ENDED JUNE
30, 2002
29Combined Statement of Cash FlowsProprietary Fund
TypesJune 30, 20XX
30Combined Statement of Cash Flows For the Fiscal
Year Ending June 30, 20XXSchedule of Noncash
Investing, Capital and Financing
31OWEN J. ROBERTS SCHOOL DISTRICTSTATEMENT OF CASH
FLOWSPROPRIETARY FUNDAS OF JUNE 30, 2002
32- Fund Statements
- Fiduciary fund statements
- Statement of fiduciary net assets
- Statement of changes in fiduciary net assets
- Redefined cannot be used to support the
governments own programs - Economic resources
- Accrual basis
33Statement of Net AssetsFiduciary FundsJune 30,
20XX
34OWEN J. ROBERTS SCHOOL DISTRICTSTATEMENT OF NET
ASSETSFIDUCIARY FUNDSAS OF JUNE 30, 2002
35Statement of Changes in Net AssetsFiduciary
Funds
36OWEN J. ROBERTS SCHOOL DISTRICTSTATEMENT OF
CHANGES IN NET ASSETSFIDUCIARY FUNDFOR THE YEAR
ENDED JUNE 30, 2002
37Government Wide Statements
- Government-wide Government and business type
activities presented for primary government.
Nonblended component units retain a discrete
presentation. - Economic resource
- Accrual basis
- Fiduciary funds not reported
38- Government Wide Statements
- Statement of net assets
- Assets less liabilities net assets is
encouraged - Traditional balance sheet format allowed (Assets
Liabilities Net Assets) - Assets and liabilities in order of liquidity
39Government Wide Statements
- Statement of net assets
- Liabilities that are long-term should be current
and long-term - Classified balance sheet can be presented
- Net assets three categories
- Capital
- Restricted
- Unrestricted
- Infrastructure assets included
40Statement of Net Assets
- Elimination and Reclassification
- Balances between funds that are initially
recorded as interfund receivables and payables at
individual fund level should be eliminated for
governmental and business-type activities - Eliminate the grossing up of assets and
liabilities - Interfund receivables / payables between general
fund special revenue and other governmental
funds eliminated and same with interfund
receivables/payables between proprietary funds - Net residual interfund receivables / payables not
eliminated and labeled internal balances
41Statement of Net Assets
- Interfund receivables / payables between primary
government and fiduciary funds not eliminated and
reported as receivables from / payable to
external parties
42Statement of Net AssetsJune 30, 20_ _
43OWEN J. ROBERTS SCHOOL DISTRICTSTATEMENT OF NET
ASSETSAS OF JUNE 30, 2002
44Government Wide Statements
- Statement of Activities
- Net cost format
- Expenses by function / programs
- Direct expenses required
- Indirect expense allocation permitted separate
column for indirect expenses, if allocated - Depreciation
- Interest
- Special, extraordinary items and transfers
45- Basic Financial Statements
- Statement of Activities
- Program revenues reduce the cost of a program
- Charges for services
- Operating grants and contributions
- Capital grants and contributions
- Net cost is financed by general revenues
46- Statement of Activities
- Eliminations and Reclassifications
- Internal activities should be eliminated so that
expenses and revenues are recorded only once - The general fund may charge other funds for
services such as insurance coverage on an
internal basis. When these costs are
consolidated the doubling up should be
eliminated so that the allocated expenses are
reported only by the function to which they are
allocated. - Internal activities should not be eliminated when
classified as interfund services provided or
used. Example, sale of water, electricity from
utility to general government.
47- Statement of Activities
- Intra-entity activity Transaction between
primary government and its discretely presented
component units - Should not be eliminated
- Amount payable / receivable should be reported as
a separate line item - Internal service fund activity should be
eliminated to avoid doubling up of expenses and
revenue. - Any profit (loss) should be allocated pro rata to
the participating funds - Residual balances related to assets and
liabilities reported in governmental activities
in statements of net assets.
48Statement of Activities
49OWEN J. ROBERTS SCHOOL DISTRICTSTATEMENT OF
ACTIVITIESFOR THE YEAR ENDED JUNE 30, 2002
50- Basic Financial Statements
- Four types of revenue sources
- Type A Those who purchase, use or directly
benefit from the goods or services of the program
(always program revenue) - Type B Parties outside the reporting
governments citizenry (program revenue if
restricted) - Type C The reporting governments taxpayers
all taxpayers, regardless whether they benefit
from a particular program. (always General
Revenue) - Type D The governmental institution itself
(usually General Revenue)
51General vs Program Revenue Pocket Guide
52- Component Unit Presentation
- Discrete presentation in government wide
statements - Fiduciary component units
- Major component unit reporting
- Separate columns in government wide statements
- Separate statements after fund presentation
- Condensed information in notes.
53- Required Supplementary Information
- Budgetary comparisons for general and major
special revenue funds - Original and final budget
- Actual on budgetary basis