microsoft powerpoint - 4d-the gaap financial reporting

1

The GAAP Financial Reporting The GAAP Financial Reporting Process Process -- Synergy In ActionSynergy In Action

BUREAU OF FINANCIAL REPORTINGBUREAU OF FINANCIAL REPORTING

David David HassoHasso, CPA, CGFM, CPA, CGFM DirectorDirectorSuzette Baker, CPA, CGFMSuzette Baker, CPA, CGFM Assistant DirectorAssistant Director

November 26November 26--28, 200728, 2007

Office of OperationsOffice of Operations2007 Fall Conference2007 Fall ConferenceSuccess Through SynergySuccess Through Synergy

3

OverviewOverview

General BackgroundGeneral BackgroundDefinitionsDefinitionsGASB 34GASB 34CAFRCAFRCAFR CAFR -- Basic Financial StatementsBasic Financial StatementsCurrent GASB StatementsCurrent GASB StatementsOther Financial ReportsOther Financial ReportsSummary/Questions/CommentsSummary/Questions/Comments

4

General BackgroundGeneral Background

The Bureau of Financial ReportingThe Bureau of Financial ReportingComprehensive Annual Financial Report (CAFR)Comprehensive Annual Financial Report (CAFR)Financial Condition Report (FCR)Financial Condition Report (FCR)Interim GAAP Financial StatementsInterim GAAP Financial StatementsChapter 551 Functional ReportingChapter 551 Functional ReportingFive Year Comparative Financial StatementsFive Year Comparative Financial StatementsSchedule of Expenditures of Federal AwardsSchedule of Expenditures of Federal AwardsCitizensCitizens’’ GuideGuideCertification of Tax RevenuesCertification of Tax RevenuesLGAC & Oil Spill Fund Financial StatementsLGAC & Oil Spill Fund Financial StatementsImplementation of GASB standardsImplementation of GASB standardsComment on proposed GASB statements and other Comment on proposed GASB statements and other standardsstandards

5

General BackgroundGeneral Background

What is GAAP Financial Reporting and why is What is GAAP Financial Reporting and why is it important?it important?

Generally Accepted Accounting Principles Generally Accepted Accounting Principles (GAAP)(GAAP)Chapter 405 of the Laws of 1981Chapter 405 of the Laws of 1981

Report to Legislature Report to Legislature MUSTMUST be be completed by July 29completed by July 29thth

Accounting BasesAccounting BasesCash Basis Reporting (preCash Basis Reporting (pre--1982)1982)Modified Accrual (Fund Accounting)Modified Accrual (Fund Accounting)Full Accrual (GASB 34)Full Accrual (GASB 34)

6

DefinitionsDefinitions

GAAP GAAP -- Generally Accepted Generally Accepted Accounting PrinciplesAccounting PrinciplesGASB GASB -- Governmental Accounting Governmental Accounting Standards BoardStandards BoardCAFR CAFR -- Comprehensive Annual Comprehensive Annual Financial ReportFinancial Report--defined formatdefined formatFCR FCR -- Financial Condition ReportFinancial Condition Report‘‘Financial PositionFinancial Position’’ vs. vs. ‘‘Financial Financial ConditionCondition’’

7

Definitions (contDefinitions (cont’’d)d)

GFOA GFOA -- Government Finance Government Finance Officers AssociationOfficers AssociationCertificate of Achievement Certificate of Achievement for Excellence in Financial for Excellence in Financial ReportingReportingAFRP AFRP -- Agency Financial Agency Financial Reporting PackageReporting Package

8

GASB 34GASB 34

““Basic Financial Statements Basic Financial Statements -- and Managementand Management’’s s Discussion and AnalysisDiscussion and Analysis-- for State and Local for State and Local

GovernmentsGovernments””Financial Reporting presentation similar to Financial Reporting presentation similar to ‘‘forfor--profitprofit’’ sectorsector3 year project started in 20013 year project started in 2001400 page standard400 page standard

More emphasis on Financial ConditionMore emphasis on Financial ConditionCapital Assets included in F/SCapital Assets included in F/SAccrual Basis of Accounting for EntityAccrual Basis of Accounting for Entity--wide wide presentationpresentationManagementManagement’’s Discussion and Analysiss Discussion and AnalysisRequired Supplementary Information Required Supplementary Information (RSI)(RSI)

9

CAFR CAFR

““Comprehensive Annual Comprehensive Annual Financial ReportFinancial Report””

Statistics for 2007 CAFRStatistics for 2007 CAFR1.1. $170 billion in entries$170 billion in entries2.2. 162 entries162 entries3.3. 7,300 entry lines7,300 entry lines

10

CAFR CAFR


Three Major Sections:Three Major Sections:1.1. IntroductoryIntroductory2.2. FinancialFinancial3.3. StatisticalStatistical

11

CAFRCAFR““Comprehensive Annual Comprehensive Annual

Financial ReportFinancial Report””Introductory SectionIntroductory Section1.1. ComptrollerComptroller’’s Letters Letter2.2. Financial OverviewFinancial Overview3.3. Certificate of AchievementCertificate of Achievement4.4. Organization Chart and State Organization Chart and State

OfficialsOfficials

12

CAFRCAFR


Financial SectionFinancial Section1.1. ManagementManagement’’s Discussion and s Discussion and

AnalysisAnalysis2.2. Basic Financial StatementsBasic Financial Statements3.3. Required Supplementary Required Supplementary

Information (RSI)Information (RSI)4.4. Other Supplementary InformationOther Supplementary Information

13

CAFR CAFR -- Basic Financial Basic Financial StatementsStatements

EntityEntity--wide financial statementswide financial statementsStatement of Net AssetsStatement of Net Assets

Assets, Current, NoncurrentAssets, Current, NoncurrentLiabilities, Current, NoncurrentLiabilities, Current, NoncurrentNet AssetsNet Assets

14


EntityEntity--wide financial statementswide financial statementsStatement of ActivitiesStatement of Activities

Expenses & Program RevenuesExpenses & Program RevenuesFunctions/ProgramsFunctions/ProgramsPrimary Government & Business Primary Government & Business Type ActivitiesType Activities

15


Governmental FundsGovernmental FundsBalance SheetBalance Sheet

AssetsAssetsLiabilitiesLiabilitiesFund BalancesFund Balances

Statement of Revenues, Expenditures & Statement of Revenues, Expenditures & Changes in Fund BalancesChanges in Fund Balances

RevenuesRevenuesExpendituresExpendituresOther Financing Sources (Uses)Other Financing Sources (Uses)

ReconciliationsReconciliations

16


Enterprise FundsEnterprise FundsStatement of Net AssetsStatement of Net Assets

AssetsAssetsLiabilitiesLiabilitiesNet AssetsNet Assets

Statement of Revenues, Expenses & Changes Statement of Revenues, Expenses & Changes in Fund Net Assetsin Fund Net Assets

Operating Revenue/ExpensesOperating Revenue/ExpensesNonNon--operating Revenues/Expensesoperating Revenues/ExpensesOther Revenues and TransfersOther Revenues and Transfers

Statement of Cash FlowsStatement of Cash Flows

17


Fiduciary FundsFiduciary FundsStatement of Fiduciary Net AssetsStatement of Fiduciary Net Assets


Statement of Changes in Fiduciary Net Statement of Changes in Fiduciary Net AssetsAssets

AdditionsAdditionsDeductionsDeductionsChange in Net AssetsChange in Net Assets

18


Discretely Presented Component UnitsDiscretely Presented Component UnitsStatement of Net AssetsStatement of Net Assets


Statement of ActivitiesStatement of ActivitiesExpensesExpensesRevenuesRevenuesChange in Net AssetsChange in Net Assets

19

CAFR CAFR Required Supplementary Required Supplementary

Information (RSI)Information (RSI)1.1. Budgetary ScheduleBudgetary Schedule--Financial Plan Financial Plan

to Actualto Actual--General Fund and Special General Fund and Special Revenue FundsRevenue Funds

2.2. Notes to Budgetary Basis ReportingNotes to Budgetary Basis Reporting3.3. Infrastructure Assets using the Infrastructure Assets using the

Modified ApproachModified Approach

20

CAFR CAFR Other Supplementary Other Supplementary

Information Information 1.1. Combining Balance SheetCombining Balance Sheet2.2. Combining Statement of Revenues, Combining Statement of Revenues,

Expenditures and Changes in Fund Expenditures and Changes in Fund BalancesBalances

3.3. Combining Schedule of Cash Combining Schedule of Cash Receipts and Disbursements Receipts and Disbursements Budgetary BasisBudgetary Basis--Financial Plan to Financial Plan to ActualActual

21

CAFR CAFR ““Comprehensive Annual Comprehensive Annual

Financial ReportFinancial Report””Statistical SectionStatistical Section1.1. DemographicDemographic2.2. EconomicEconomic3.3. MiscellaneousMiscellaneous4.4. Ten year presentation, when Ten year presentation, when

availableavailable

22

Current GASB StatementsCurrent GASB Statements

GASB 43 GASB 43 -- Financial Reporting for Financial Reporting for Postemployment Benefit Plans Postemployment Benefit Plans Other Than Pension PlansOther Than Pension Plans

GASB 45 GASB 45 -- Accounting andAccounting andFinancial Reporting by Financial Reporting by Employers for Postemployment Employers for Postemployment Benefits Other Than PensionsBenefits Other Than Pensions

23


GASB 44 GASB 44 -- Economic Condition Economic Condition Reporting: The Statistical SectionReporting: The Statistical Section

GASB 47 GASB 47 -- Accounting for Termination Accounting for Termination BenefitsBenefits

GASB 48 GASB 48 -- Sales and Pledges of Sales and Pledges of Receivables and Future Revenues Receivables and Future Revenues and Intraand Intra--Entity Transfers of Assets Entity Transfers of Assets and Future Revenuesand Future Revenues

24


GASB 49 GASB 49 -- Accounting and Financial Accounting and Financial Reporting for Pollution Remediation Reporting for Pollution Remediation ObligationsObligations

GASB 50 GASB 50 -- Pension DisclosuresPension DisclosuresGASB 51 GASB 51 -- Accounting & Financial Accounting & Financial

Reporting for Intangible AssetsReporting for Intangible Assets

25

Financial ReportsFinancial Reports

26

Other Financial ReportsOther Financial Reports

1.1. Financial Condition Report (FCR)Financial Condition Report (FCR)Presents the StatePresents the State’’s s ‘‘Financial Financial ConditionCondition’’ rather than rather than ‘‘Financial Financial PositionPosition’’The StateThe State’’s Popular Reports Popular Report

2.2. Interim GAAP Basis ReportingInterim GAAP Basis ReportingPrepared quarterly (June, Prepared quarterly (June, September and December)September and December)

27

Agency Financial Reporting Agency Financial Reporting PackagePackage--AFRPAFRP

Gross Accounts ReceivableGross Accounts Receivableapproximately 50 agenciesapproximately 50 agencies

Gross Miscellaneous LiabilitiesGross Miscellaneous Liabilitiesapproximately 20 agenciesapproximately 20 agencies

Compensated AbsencesCompensated Absencesapproximately 300 agencies.approximately 300 agencies.

28

Agency Financial Reporting Agency Financial Reporting Package OnPackage On--Line SystemLine System

1.1. Agency Financial Reporting Package Agency Financial Reporting Package (AFRP)(AFRP)

Collects information from Collects information from approximately 215 State agenciesapproximately 215 State agenciesUsed for annual and interim Used for annual and interim reportingreporting

29

SummarySummary

GAAP financial statements and the CAFR are GAAP financial statements and the CAFR are required to:required to:

1.1. Present timely modified accrual and full Present timely modified accrual and full accrualaccrual--based financial statements to the based financial statements to the public, bond rating agencies, investment public, bond rating agencies, investment banks, etc.banks, etc.

2.2. Critical for recognizing the true financial Critical for recognizing the true financial position and condition of the State.position and condition of the State.

3.3. Critical for determining bond ratings, issuing Critical for determining bond ratings, issuing debt, etc.debt, etc.

4.4. Important for comparability with other Important for comparability with other states.states.

30

Questions/Comments?Questions/Comments?

David David HassoHasso (518) 486(518) [email protected]@osc.state.ny.us

Suzette Baker (518) 486Suzette Baker (518) [email protected]@osc.state.ny.us

microsoft powerpoint - 4d-the gaap financial reporting

Documents

financial condition6

financial overview3

basic financial statements3

current gasb statements

proposed gasb statements

accrual gasb

infrastructure assets

current gasb statementsgasb