Financial Reporting

2007 FMC Conference

Georgia Fiscal Managers –

The Key to the Best Managed State

AgendaBudgetary Reporting

Getting Ready for Year-End

Financial Reporting Deadlines

Capital Assets/Asset Management

What’s Next?

Budgetary Reporting

Budgetary Reporting

FY 2006

Advent of Program Budgeting“Fuzzy” Guidance – Legal Level of ControlSystem Constraints (identifying program)Resulting lack of Compliance (Auditor’s report)Letter from COO/CFO/SAO

Budgetary Reporting

FY 2007

PeopleSoft Redesign (program chartfield)

System Integration (PS/BudgetNet)

Clearer Direction (SAO/OPB Training)

Budgetary Reporting

Outstanding Issues

Budgeting carry-over funds

Budget Year identification

Budgetary Reporting

Progress toward resolution

Ongoing collaboration between SAO/OPB in policy development

Agency feedback/validation of options

2008 Control level

Getting Ready for Year-End

Getting Ready for Year-End

Reconciliations

Subsidiary ledgers to G/L

Bank accounts to G/L

All activity is on General Ledger

Getting Ready for Year-End

Monitor Budgets – Budget Comparison Reports

Revenues

Expenditures

Getting Ready for Year-End

InterUnit Activity

Queries

Expenditures must be posted for established A/Rs

Getting Ready for Year-End

Examine trial balances by funding source

Clean-up – look at balances in “old” funds

Getting Ready for Year-End

Analysis of fund balance

Mail all bank confirmations (June 30)

Start (or continue) accumulation of lease data

Getting Ready for Year-End

Outstanding Issues

I T Expenditures – account 872xxx

PeopleSoft Year-End Closing Entry – Restricted Funding Sources

Getting Ready for Year-End

PeopleSoft – 2 periods open

BE CAREFUL !

Don’t combine budget periods on transactions

Financial Reporting Deadlines

Financial Reporting Deadlines

July 27 – 29: PeopleSoft Close

Forms Deadlines:August 17

Analysis of fund balance (reserves?)

Financial Reporting Deadlines

Forms Deadlines:August 24

Revenues based on encumbrances

Program/general revenue

Allowance for doubtful accounts

Financial Reporting Deadlines

Forms Deadlines:August 31

Reserve Requests

September 7

Capital Assets/Depreciation

Financial Reporting Deadlines

Forms Deadlines:September 14

Capital/Operating Leases(Includes Lease Agreement Data

Forms)General Long-Term Debt

September 21Cash and Investments

Financial Reporting Deadlines

Forms Deadlines:September 28

General and Other Information

CPA Reports due October 1

Capital Assets/Asset Management

Capital Assets/Asset Management

History of “Issues”

Multiple Initiatives in progress

BLLIP

AMP

Over-arching policy for Capital and other Assets

Capital Assets/Asset Management

Project (still in infancy)

Identification of Key Stakeholders

SAO

OPB

DOAS

SPC

Capital Assets/Asset Management

Areas of Concentration

Leases – Capital and Operating

Small value/“sensitive” assets

CIP – Reconciling with GSFIC

Capital Assets/Asset Management

Expected Outcomes

Elimination of findings/qualification

Single source of record

Integration among all systems

Capital Assets/Asset Management

Expected Outcomes

Enhanced, consistent policies

Clearly-defined procedures

Account code/system changes

What’s Next?

What’s Next?

GASB

Statement Nos. 43 and 45 – “OPEB”

What’s Next?

GASB

Statement No. 48 - Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfers of Assets and Future Revenues

Pertinent section – Asset Transfers

(Assets should not be revalued)

Effective FY 2008

What’s Next?

AICPA

Statements on Auditing Standards (SAS) 104-111

“Risk Suite”

[Preview of Session on Internal Controls]

What’s Next?

Risk Suite

Emphasis on management’s risk assessment, monitoring of controls, and responsibility for account balances

Emphasis on proactive programs by management and not just on controls

What’s Next?

Risk Suite – SAO Response

Evaluation of Requirements

Guidance for State organizations

Questions?