Emerging Issues Roundtable

1
Emerging Issues Roundtable

• NASACT Annual Conference
• Chicago, IL
• August 24, 2015

2
Please utilize your Audience Response
Keypads. When prompted, simply select the choice
by pressing the option that best represents your
response.
Audience Response
PLEASE REMEMBER TO LEAVE THE HANDSETS IN THE ROOM
PRIOR TO DEPARTING.
3
Demographics

• Getting to Know our Audience

4
1. Do you work in the
Question 1 Public or Private Sector

1. Public sector
2. Private sector

5
2. Are you a
Question 2 Your Primary Function (NASACT
Members Only)

1. State Auditor (or staff)
2. State Comptroller (or staff)
3. State Treasurer (or staff)

6
3. For those in the public sector, are you
Question 3 Method of Selection

1. Elected
2. Appointed
3. Other

7
4. Are you a member of the
Question 4 Generational Categories

1. Silent generation (born 1927 to 1945)
2. Baby boomers (born 1946 to 1964)
3. Gen X (born 1965 to 1980)
4. Gen Y/Millennials (born 1981 to 2000)
5. Gen Z/Boomlets (born after 2001)

8
5. What region are you from?
Question 5 Geographic Location

1. North
2. South
3. East
4. Midwest
5. West

9
Top Issues

• Today and Down the Road

10
6. What do you see as the most significant
challenge facing your office today?
Question 6 The Challenges

1. Political pressures
2. Budget shortfalls
3. Hiring, retaining, or retirements of qualified
   employees
4. Standards overload (including increasing
   complexity)
5. Systems/Data security
6. Other

11
7. What do you see as the most significant
challenge facing your office three years from
now?
Question 7 The Challenges

1. Political pressures
2. Budget shortfalls
3. Hiring, retaining, or retirements of qualified
   employees
4. Standards overload (including increasing
   complexity)
5. Systems/Data security
6. Other

12
The War for Talent

• Hiring/retaining qualified employees

13
8. Are you having a problem hiring or retaining
high quality employees?
Question 8 The War for Talent

1. Yes
2. No

14
Assuming the answer to the previous question is
yes, how severe is the problem (1no problem,
10major problem)?
Question 9 The War for Talent

1. 1
2. 3
3. 5
4. 7
5. 10

15
10. For those not having a problem hiring or
retaining employees (i.e., a rating lower than
5), what factors do you attribute this to?
Question 10 The War for Talent

1. Strong employee value
2. Strong employee management
3. Lots of local talent looking for jobs
4. All of the above
5. Other

16
11. For those having a problem hiring or
retaining employees (a rating of 5 or higher),
what type of issues do you see as a challenge?
Question 11 The War for Talent

1. Recruiting younger workers with appropriate
   competencies
2. Retaining current workers
3. Retraining current workers with different
   competencies than when they were hired
4. All of the above
5. Other

17
12. What steps are you taking to hire/retain
quality employees?
Question 12 The War for Talent

1. Flexible schedules
2. Salary adjustment
3. Telecommuting
4. Robust training programs
5. Tuition reimbursement
6. All of the above
7. Other

18
13. If you allow telecommuting, what level of
staff telecommute?
Question 13 The War for Talent

1. Entry level (1-3 years exp.)
2. Staff level (3 years exp.)
3. Supervisors/Auditors-in-Charge
4. Managers
5. All of the above

19
14. If you allow telecommuting, how many days a
week is it allowed?
Question 14 The War for Talent

1. 1
2. 2
3. 3
4. 4
5. 5

20
The War for Talent

• Open discussion

21
Budgets Economic Condition

• Are Things Really Improving?

22
15. How would you rate your states current
financial condition?
Question 15 States Financial Condition

1. Excellent
2. Good
3. Average
4. Poor
5. Very Bad

23
16. How would you rate your states future
financial condition?
Question 16 States Financial Condition

1. Excellent
2. Good
3. Average
4. Poor
5. Very Bad

24
17. What is the biggest threat to your
governments future financial stability?
Question 17 Key Threats

1. Pension liabilities
2. OPEB liabilities
3. Infrastructure costs
4. Personnel costs
5. Insufficient or declining revenue
6. Other

25
18. How was the impact on your offices most
recent budget from the prior year?
Question 18 Your Offices Budget

1. Increase
2. No change
3. Decrease

26
19. What will be the general direction of your
offices budget over the next 3-5 years?
Question 19 Your Offices Budget

1. Increase
2. No change
3. Decrease

27
20. What is the most effective way to
communicate a governments financial condition?
Question 20 Communicating Financial Condition

1. Comprehensive Annual Financial Report
2. Popular report
3. Website
4. Press releases
5. Print media
6. Social media

28
21. How effective are efforts to connect with
citizens over financial condition?
Question 21 Communicating Financial Condition

1. Highly effective
2. Effective
3. Somewhat effective
4. Neither effective or ineffective
5. Ineffective
6. Highly ineffective

29
Budgets Economic Condition

• Open discussion

30
Standards Overload Complexity

• Are You Having Trouble Keeping Up?

31
22. Compared to the past, do you find the pace of
new standards to be increasing?
Question 22 Standards Overload

1. Yes
2. No
3. N/A

32
23. Compared to the past, do you find the new
standards to be more complex?
Question 23 Standards Overload

1. Yes
2. No
3. N/A

33
24. Based on a scale of 1 to 10 (1not complex at
all, 10major complexity), how complex did you
find GASB Statement No. 68 (Pensions) to
implement or audit?
Question 24 GASB No. 68 Complexity

1. 1
2. 3
3. 5
4. 7
5. 10
6. N/A

34
25. Assuming you find GASB No. 68 a complex
standard to implement, what are the primary
causes?
Question 25 GASB No. 68 Complexity

1. Lack of timely information from the pension plan
   (e.g., GASB 67 related)
2. Communication issues with the pension plan
3. Difficulty in testing census data
4. Inadequate implementation guidance
5. Inadequate audit guidance
6. Other
7. N/A

35
26. While the final numbers are currently being
compiled in the FY 2015 CAFRs, what is the
anticipated impact on the Statement of Net
Assets?
Question 26 GASB No. 68 Impact

1. Severe impact (will cause negative net assets)
2. Moderate impact (will not reduce net assets by
   more than 25)
3. Minor impact (will not reduce net assets by more
   than 5)
4. No impact
5. Positive impact (will actually have a net pension
   asset)
6. Not sure
7. N/A

36
27. Are you aware of any governments in your
state (state or local) that will have overall net
negative assets as a result of GASB 68?
Question 27 GASB No. 68 Impact

1. Yes
2. No
3. Not sure

37
28. While the effective date for GASB No. 75
(OPEB) is a few years away, what is the
anticipated impact on the Statement of Net
Assets?
Question 28 GASB No. 75 Impact

1. Severe impact (will cause negative net assets)
2. Moderate impact (will not reduce net assets by
   more than 25)
3. Minor impact (will not reduce net assets by more
   than 5)
4. No impact
5. Positive impact (will actually have a net OPEB
   asset)
6. Too early to estimate
7. Not sure
8. N/A

38
29. How prepared are you to implement the
provisions of OMBs new Uniform Grant Guidance?
Question 29 OMBs Uniform Grant Guidance

1. Very prepared
2. Prepared
3. Not prepared at all
4. N/A

39
30. If you are not prepared at all, what are
the obstacles?
Question 30 OMBs Uniform Grant Guidance

1. Lack of timely guidance
2. Lack of knowledge or awareness by state agencies
3. Lack of knowledge or awareness by subrecipients
4. Other

40
31. The GASB recently issued an Exposure Draft
that would allow qualifying external investment
pools (those that would come under SEC Rule 2a-7)
to continue to measure their investments at
amortized cost, rather than fair value. Do you
agree with GASBs proposed approach?
Question 31 SEC Rule 2a-7 and GASB ED

1. Yes
2. No
3. Not sure
4. N/A

41
Standards Overload Complexity

• Open discussion

42
Systems/Data

• Security and Accuracy

43
32. How confident are you in the security of your
states or companys systems?
Question 32 Systems Security

1. Very confident
2. Confident
3. Not confident at all
4. Not sure

44
33. How confident are you in the security of your
offices systems?
Question 33 Systems Security

1. Very confident
2. Confident
3. Not confident at all
4. Not sure

45
34. Has your state or company encountered some
sort of security breach in the past year?
Question 34 Systems Security

1. Yes
2. No
3. Not sure

46
35. Has your office encountered some sort of
security breach in the past year?
Question 35 Systems Security

1. Yes
2. No
3. Not sure

47
36. Data accuracy is critical to the work of
government accountability officials. In your
professional responsibilities, how often do you
encounter problems with data integrity and
accuracy?
Question 36 Data Quality

1. Frequently
2. Often
3. Occasionally
4. Rarely
5. Never

48
37. Today, data is being collected in
unprecedented amounts. But, how usable is the
data that is being collected? How often is your
office able to use collected data to make useful
decisions?
Question 37 Data Quality

1. Frequently
2. Often
3. Occasionally
4. Rarely
5. Never

49
38. What is the primary cause of data problems?

Question 38 Data Quality

1. Technology (aging systems)
2. Management issues (lack of accountability or
   supervision, noninterest, etc.)
3. Lack of effective internal controls
4. Poor planning or lack of planning
5. Data entry issues (lack of consistent definition,
   identifiers, and other data input issues)
6. Lack of expertise or lack of data analytics to
   determine quality issues
7. Other

50
39. How often do you use data analytics to make
informed decisions?
Question 39 Data Analytics

1. Frequently
2. Often
3. Occasionally
4. Rarely
5. Never

51
Systems/Data

• Open discussion

52
Miscellaneous Items

• Some Odds and Ends

53
40. Does your state or your company have an audit
committee?
Question 40 Audit Committees

1. Yes
2. No
3. Not sure

54
41. If yes, how was your states audit committee
established?
Question 41 Audit Committees

1. Legislation
2. Regulation
3. Executive Order
4. Other

55
42. If yes, what is the composition of the audit
committee?
Question 42 Audit Committees

1. Legislators
2. Executive branch officials
3. Business leaders and/or academicians
4. Other

56
43. What are the committees responsibilities
(select all that apply)?
Question 43 Audit Committees

1. Help formulate sound financial policy
2. Confer with state finance officials as concerns
   arise
3. Approve annual audit plan and review all audit
   reports and management letters
4. Other
5. Not sure

57
44. How effective is the committee in assuring
that audit findings are appropriately addressed?
Question 44 Audit Committees

1. Highly effective
2. Somewhat effective
3. Not effective
4. Not its responsibility
5. Not sure

58
45. Does your state or company have internal
auditors?
Question 45 Internal Auditors

1. Yes
2. No
3. Not sure

59
46. If yes to the previous question, are they
Question 46 Internal Auditors

1. Centralized
2. Decentralized
3. Combination of both

60
Miscellaneous Items

• Open Discussion

61
And one last question just for funIf you were
voting in the Iowa caucus, who would you vote for
(in alpha order)?

1. Jeb Bush
2. Hillary Clinton
3. Chris Christie
4. Carly Fiorina
5. Bill Holland
6. John Kasich
7. Marco Rubio
8. Donald Trump
9. Scott Walker
10. None of the above

62
And, the Winner Is

• Bill Hollandwith 750 votes!
• Wait.how can that be, there are only 350 people
  here
• Well, we are in Chicago!!

63
Thank you for participating!
Audience Response
PLEASE REMEMBER TO LEAVE THE HANDSETS IN THE ROOM
PRIOR TO DEPARTING.
64
Please Reply Now
Impromptu Question

1. Option A
2. Option B
3. Option C
4. Option D
5. Option E

65
Please Reply Now
Impromptu Question

1. Yes
2. No

66
Please Reply Now
Impromptu Question

1. Strongly Agree
2. Agree
3. Neutral
4. Disagree
5. Strongly Disagree

67
Thank you for participating!
Audience Response
PLEASE REMEMBER TO LEAVE THE HANDSETS IN THE ROOM
PRIOR TO DEPARTING.