Office of the Utah State Auditor

1. A Key Pillar of State Government Office of theUtah State Auditor

2. Local Government Division

3. Local Government Team • Van Christensen - Director • Counties • Ryan Roberts – Supervisor • Local and Special Service Districts, Non-profits

4. Local Government Team • Patricia Nelson – Supervisor • Cities and Towns, RDA’s • School Districts • Emily Britton – Assistant

5. Local Government Initiatives

6. Local Government Initiatives • Leveraging Technology • Independent Assessment • Increased Transparency • Improved Collaboration

7. Leveraging Technology • On-line reporting (reporting.auditor.utah.gov) • Website navigation and features • Training over UEN • Electronic communication • On-line training modules

8. Mission Statement We provide Utah taxpayers and government officials with an independent assessment of financial operation, statutory compliance, and performance management for state and local government.

9. Objective Be a constitutional watchdog to ensure that taxpayer funds are being spent legally, efficiently, and effectively.

10. Independent Assessment • Agreed-Upon procedures • State Legal Compliance Guide • Schedule of Expenditures of State Awards • Uniform Accounting Manual

11. Increased Transparency • Uniform Chart of Accounts • AGRC Project

13. Improved Collaboration • Development of Uniform Chart of Accounts • CPA Roundtable – January 22, 2015 • “As we traveled home from the roundtable discussion we could not stop talking about how beneficial and relevant we felt the roundtable discussion was.  It was wonderful to walk away from a training with answers and feeling like our concerns were being heard.” • Interlocal Entity Roundtable – follow-up to HB17

14. Financial Reporting Requirements Financial Report Thresholds On-line submission system Uniform Chart of Accounts Certification of Financial Reports

15. Financial Report Thresholds Utah Code 51-2a-201: If Revenues or Expenses are: • Over $500,000 • Audit w/ State Compliance Audit • Between $100,000 to $500,000 • Agreed-Upon Procedures report • On-line submission of financial data • Below $100,000 • On-line submission of financial data

16. reporting.auditor.utah.gov Utah Code 51-2a-201: If Revenues or Expenses are: • Below $100,000 • On-line submission of financial data (Option 2) • Within 6 months of fiscal year-end • Budget presented to the public (Option 1) • Within 30 days of adoption

17. reporting.auditor.utah.gov Utah Code 51-2a-201: If Revenues or Expenses are: • Between $100,000 to $500,000 • Agreed-Upon Procedures report • On-line submission of financial data (option 2) • Within 6 months of fiscal year-end • Budget presented to the public (option 1) • Within 30 days of adoption

18. reporting.auditor.utah.gov Utah Code 51-2a-201: If Revenues or Expenses are: • Over $500,000 • Audit w/ State Compliance Audit (Option 1) • Within 6 months of year-end • Budget presented to the public (Option 1) • Within 6 months of fiscal year-end • Post detailed transactions quarterly to Transparency website

19. Online Entry of Local Government Reports Utah Code 68-3-14 requires electronic reporting • Easy to use, web interface to enter required data • Direct Upload of files • Direct Entry of UT-x Survey Data • Online certifications, data checks • All detailed financial data will be searchable across all Local Government entities • Enhance transparency and accountability

20. Online Entry of Local Government Reports • Update of Entity Information • Current elected officials • Current Administrative officials • Upload of Budgets • In the format that was provided to public • Example Forms available, but not required • Online certification

22. Uniform Chart of Accounts • Applicability • Local governments who post to Transparency website (over $1 million in revenues or exps) • Local governments with revenues and exps between $500,000 an $1 million • NOT applicable to school districts and charter schools

23. Uniform Chart of Accounts • Purpose • Comparability • Benchmarking • Elimination of Duplication

24. Uniform Chart of Accounts • Resources • Excel format to facilitate mapping • Frequently Asked Questions • Implementation Guide

25. Contacts State Finance State Auditor’s Office Questions with mapping? Contact: Ryan Roberts, 801-538-1721 • Questions with the upload template? • Contact Darrell Swenson, 801-538-3059

26. Time-saving Approach • Start with chart of accounts from finance system • Assign funds • Assign functions • Assign accounts • Apply throughout the chart of accounts

27. Time-saving Approach

28. Time-saving Approach

29. Time-saving Approach

30. Notable Tips • There is only one general fund – 100 • If only one of any type of fund – use main fund number (ie. Water fund – 500; or Water fund 505, Sewer Fund 510, Electric Fund 515)

31. Notable Tips • Only general-purpose governments use general government functions (100000) • Map to the same level of accounting as your operational chart of accounts

32. Notable Tips • All revenue and expenditure accounts should be assigned a function, function is generally n/a for balance sheet accounts. • 010, 020, and 030 funds are only used to report entity-wide assets and liabilities.

33. Uniform Chart of Accounts • Time frame • 6/30 – must be implemented by 6/30/2014 • 12/31 – must be implemented by 12/31/2014 • 2014 uploads - must include uniform chart of accounts

34. Uniform Chart of Accounts • How are we doing? • Towns – 75% • Cities – 49.2% • Special Service Districts – 7% • Counties – 0% • Overall – 34.9%

35. NEW - Financial Report Certifications • Utah Code 11-50-201- Requires certification of annual financial reports by the chief administrative officer and chief financial officer (effective July 1, 2013) • “Under penalty of perjury, I, [officer's name] certify that the [annual financial report] of [political subdivision] for the year ended [date] fairly presents in all material respects the financial condition and results of operations of [political subdivision].”

36. How To Certify • Electronic Signature through online submission • Hard copy form • Form illustration on auditor.utah.gov Financial Report will not be considered complete unless certification is submitted.

39. Questions? ryanroberts@utah.gov 801-538-1721 auditor.utah.gov