_____________________________________ July 30, 2012 Staci Henshaw, CPA, Director

1. _____________________________________ • July 30, 2012 • Staci Henshaw, CPA, Director http://www.apa.virginia.gov

2. Overview • Provide background surrounding Comparative Report • Discuss why locality CAFR’s are not viable sources of information for the Comparative Report • Discuss opportunities to improve the process http://www.apa.virginia.gov

3. Comparative Report of Local Government • Objective is to present uniform financial data on Virginia counties, cities, and towns in an understandable and useful manner • Currently is only reliable and consistent source of information about local governments http://www.apa.virginia.gov

4. Comparative Report Background • 1930s – 1960s • APA audited most counties and prepared County Comparative Report from counties’ records • Cities hired auditors and APA staff prepared City Comparative Report from annual reports • Counties data was uniform; cities data not reliable and was inconsistent http://www.apa.virginia.gov

5. Comparative Report Background • 1970s • APA audited less than 1/3 of counties • Counties and cities were hiring auditors and APA staff prepared the Comparative Report from annual reports • Comparative Report lost uniformity and comparability http://www.apa.virginia.gov

6. Comparative Report Background • Late 1970s • APA met with legislators, localities, academia, and other interested parties • All decided need for a Uniform Financial Reporting Manual with uniform chart of accounts and specific detail • Users wanted transparency and ability to compare data between localities http://www.apa.virginia.gov

7. Comparative Report Background • 1981 • First Comparative Report prepared in accordance with the Uniform Financial Reporting Manual • All local government data is uniform and comparable http://www.apa.virginia.gov

8. Comparative Report Users • Local government officials • Local government organization (VML & VACO) • Legislators • Commission on Local Government • Fiscal stress index (revenue capacity and revenue effort components) • Academia http://www.apa.virginia.gov

9. The CAFR is not a viable source of information for the Comparative Report • Revenues and expenditures not uniform and comparable between localities or between years • Revenues and expenditures not comprehensive of government’s involvement in regional activities • Detail not available for fiscal analysis http://www.apa.virginia.gov

10. Opportunities to Improve Process – Information • APA has started discussions with users and preparers • What is the key information included in the Comparative Report? • Are there other sources for some information? • APA must follow Administrative Process Act for any proposed changes to information http://www.apa.virginia.gov

11. Opportunities to Improve Process – Data Collection • Locality Opportunities for Improved Efficiency • Set-up general ledger accounts to mirror Comparative Report accounts • Utilize financial system technology to assist in Comparative Report preparation • APA is reviewing transmittal forms for process improvements http://www.apa.virginia.gov

12. _____________________________________ QUESTIONS http://www.apa.virginia.gov