Unaudited Agencies 2014
Download
1 / 100

Unaudited Agencies 2014 Closing Process Training - PowerPoint PPT Presentation


  • 108 Views
  • Uploaded on

Unaudited Agencies 2014 Closing Process Training. Agenda. Introductions CAFR/Single Audit Update Single Audit Closing Process New GASB’s wv OASIS. Financial Accounting & Reporting Section Staff. Renee King Dan Nary Michael Powell, CPA Jane Shinn Kay Walden.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Unaudited Agencies 2014 Closing Process Training' - natala


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Unaudited Agencies 2014Closing Process

Training


Agenda

  • Introductions

  • CAFR/Single Audit Update

    • Single Audit

    • Closing Process

    • New GASB’s

    • wvOASIS


Financial Accounting & Reporting Section

Staff

  • Renee King

  • Dan Nary

  • Michael Powell, CPA

  • Jane Shinn

  • Kay Walden

  • Connie Byrne, CPA

  • Susannah Carpenter, CPA

  • Jordan Clay

  • Betsy Frame

  • Cheryl Garner

  • Becky Hayes, CPA


Guest Speaker

Darden Greene


FY 2013 Update

  • Issued CAFR on 2/13/14

  • Still expect to receive Certificate of

  • Achievement in Financial Reporting

  • Issued Single Audit on 3/31/14 at

  • 11:45 p.m. on Monday


CAFR for Fiscal Year 2013

  • Almost 500 journal entries

  • 100+ Work papers

  • 8 Full-time employees

  • 3 Part-time employees


FY 2013 Update

  • The CAFR combines 67 unaudited and 29 audited agencies.

  • Agencies struggle to submit financial information:

    • 9 of 29 audited agencies did not meet the final audit

      deadline (31%)

    • Final audit was received on November 25


Subsequent Events

  • Bonds issued after June 30

  • Legal Case

    Call FARS and we will discuss event and materiality


Single Audit Billing is for:

  • CAFR

  • Single Audit

  • SOC 1 Report



Reason Single Audit Bill Increases:

  • CAFR completion goes beyond December 31

    • Audits received after October 15th

    • Closing Book forms received after July 31st

    • Incomplete/Incorrect data for other liabilities (Medicaid, Special Reclamation, Taxes…)

    • Documentation still needed for samples

    • Fixed Assets not in system timely

    • Wrong Rev Src and Obj codes used


Reason Single Audit Bill Increases:

  • Single Audit completion goes beyond February 28

    • Closing Book forms received after July 31st

    • SEFA information on forms is incorrect

    • Transfers do not agree

    • Change in Major Program threshold (late forms and incorrect transfers)

    • Agencies giving incorrect population to auditors

    • Auditors still needing/requesting information


2013 Single Audit

  • 44 Findings –

    • Down 19 from 2012

    • 30 repeat findings

  • 41 are Program Audit Findings


Single Audit Team

Contact Information

OMB A-133

Team:

Currently out for bid, the contact information will be conveyed once the contract is signed.



2013 statewide finding
2013 Statewide Finding

2013 - 002 – Capital Assets

  • Assets not added to the fixed asset system in a timely manner

    2013 - 003 – SEFA

  • Accurate SEFAs not received in timely manner

  • Internal control process are not established around the preparation and review of the SEFA


2014 single audit objectives
2014 Single Audit Objectives

  • FARS will continue to be involved in the entrance conferences.

  • FARS will provide final SEFA to Agencies.

  • Agencies will have 2 weeks to obtain requested documentation for the audit firm. If after 2 weeks and documentation is not provided will/may receive a finding.

  • FARS will be involved in the closing meetings.

  • Preliminary findings document will be issued in December.


Form 9A - SEFA Checklist

  • Required with SEFA submission

  • Signatures required: preparer and supervisor

  • Issues will be communicated with preparer and supervisor listed on this form.

  • Include DUNS and FEIN

SEFA Check List


Form 9A - SEFA Checklist (Cont.)

  • CFDA / Program beginning balances documented

  • Are the negative receipts or disbursements documented?

  • Is the ending cash account balance for WVFIMS account type equal to the 6/30/14 cash balance?

  • Reconciliation items $25K or greater documented

  • Forms 9C and Form 9D – Transfers confirmed and beginning balance = PY ending

SEFA Check List


Reconciliation

Total Disbursements and Subrecipient Awards from SEFA Software

- Transfers from Forms

= Actual Disbursements





Form 13 – Prior Year Findings

Update monthly

Send to [email protected]

Form 13


eZ-Audit

Form 13


WorkForce West Virginia has already placed controls and new procedures into production to alleviate this type of issue with ETA 227. The staff member responsible for completing this report has developed a new Excel spreadsheet to assist in the tabulation of each field on this particular report. In addition, several additional automated reports have been programmed to assist in preparation of this report. We have been able to fully automate the ETA 227 and are currently reviewing the report to ensure the accuracy. Upon completion of this review, we will be completing the ETA 227 report with data directly from the fully automated report being generated from our system. Whether we use the current method of preparing the ETA 227 or the new automated report, an outside unit will still be reviewing the report before submission. Due to the time period used for the above audit, these measures were not in place. Therefore, we feel that the current procedures as well as new report will alleviate this type of issue in the future.


WorkForce West Virginia has already placed controls and new procedures into production to alleviate this type of issue with ETA 227. The staff member responsible for completing this report has developed a new Excel spreadsheet to assist in the tabulation of each field on this particular report. In addition, several additional automated reports have been programmed to assist in preparation of this report. We have been able to fully automate the ETA 227 and are currently reviewing the report to ensure the accuracy. Upon completion of this review, we will be completing the ETA 227 report with data directly from the fully automated report being generated from our system. Whether we use the current method of preparing the ETA 227 or the new automated report, an outside unit will still be reviewing the report before submission. Due to the time period used for the above audit, these measures were not in place. Therefore, wefeel that the current procedures as well as new report will alleviate this type of issue in the future.


WorkForce West Virginia (WorkForce) has already placed controls and new procedures into production to alleviate this type of issue with ETA 227. The staff member responsible for completing this report has developed a new Excel spreadsheet to assist in the tabulation of each field on this particular report. In addition, several additional automated reports have been programmed to assist in preparation of this report. WorkForcehas been able to fully automate the ETA 227 and is currently reviewing the report to ensure the accuracy. Upon completion of this review, WorkForce will be completing the ETA 227 report with data directly from the fully automated report being generated from the system. Whether WorkForce uses the current method of preparing the ETA 227 or the new automated report, an outside unit will still be reviewing the report before submission. Due to the time period used for the above audit, these measures were not in place. Therefore, WorkForce feels that the current procedures as well as new report will alleviate this type of issue in the future.


Object codes oasis wvfims

  • Revenue Code 6861(861) is to be used to record federal revenue received by an agency.

  • Object Code 3302 (168)is used to record the federal funds disbursed between agencies.

  • Object Code 3285 (128) is used to record the federal funds disbursed to outside subrecipients.

Object Codes OASIS (WVFIMS)



Web link to Federal Grant Access Database Program at -

http://www.wvfinance.state.wv.us/grants.htm

  • Download the Federal Grant Information which consist of:

    • Installation Instructions

    • Grant Reporting Installation Program

    • FARS and Grantor Data Tables

SEFA Software


New Computer

  • Have a new computer?

    • Print the Program Installation Instructions

    • SEFA software must be downloaded to

      • C:\Program Files\SEFA

    • Need administrative rights to this folder

  • FARS and Grantor Data Tables must be downloaded to

  • C:\Program Files\SEFA\Import:

  • FARS Data Table Grantor Data Table

  • SEFA Software


    Are you using the same computer from last year?

    • Warning! The new import will overwrite prior year data files

    • Maintain a copy of last year’s information by

      • Copying existing SEFA folder to new path

        • From: C:\ProgramFiles\SEFA

        • To: C:\ProgramFiles\FY 2013 SEFA

    SEFA Software


    Federal Reporting

    • Software Issues

      • When adding a New “Program” or “CFDA”

      • First thing you should do is select correct icon.

    SEFA Software


    Federal Reporting

    • Software Issues (cont.)

      • Always select an Account Number

      • Always select a Federal Grantor

    SEFA Software


    Federal Reporting

    • Software Issues (cont.)

      • Don’t enter information into Account

      • TRANSFERS XX (FARS use only)

    SEFA Software


    Federal Reporting

    • Documentation needed for:

      • Beginning balance changes

      • Reconciling items over $25,000

      • Negative disbursements and receipts

    SEFA Software


    Federal Reporting

    • Information Issues

      • Balance to WVFIMS as of 6/30/14

      • Do not include 13th month

      • Do not duplicate CFDA #’s in the same account

    SEFA Software


    Clean Up Items

    • Review the federal grant report for completeness

      • CFDA number should not be in program

      • number field.

      • CFDA / program number should be assigned a federal grantor.

      • Programs with no activity, with all zeros, can be removed. Keep if there is a beginning

      • balance adjustment.

    SEFA Software


    Due Date

    July 31, 2014

    SEFA Software


    Submit supporting documentation and

    export data via email to:

    [email protected]

    or

    Mail with supporting documentation to:

    FARS

    Building 17, 3rd Floor

    2101 Washington Street, East

    Charleston, WV 25305

    SEFA Software


    • AGENCY’S RESPONSIBILITY

      • Fixed Assets June 29, 2014

      • Leave Information July 11, 2014

      • SEFA Software July 31, 2014

      • Transmittal/Forms July 31, 2014


    Procedures

    Forms will be on the following website by July 1, 2014

    http://www.wvfinance.state.wv.us/farsforms.htm


    Procedures and Submissions

    • Download Excel Forms

    • Call if trouble downloading

    • Forms due July 31, 2014


    Procedures and Submissions

    READ CLOSING BOOK INSTRUCTIONS

    (Included on bottom of all forms)


    Procedures and Submissions

    Email completed forms which

    do not require supporting documentation to:

    [email protected]


    Procedures and Submissions

    Mail completed forms along with supporting documentation to:

    FARS

    Building 17, 3rd Floor

    2101 Washington Street, East

    Charleston, WV 25305


    Audit Notification Form

    • Included in Closing Forms or can be downloaded

    • separately from the FARS website

    • Complete and submit to FARS any time audit work or review will be performed by independent, federal, or other auditors/reviewers

    Audit Notification



    Leave Balance Information

    • Required Employee Information:

      • Name

      • Social Security Number

      • Balance of Annual Leave at 6/30/14

      • Balance of Sick Leave at 6/30/14

    (in hours -2 decimals)


    Leave Balance Information (cont.)

    • List employees in alphabetical order

    • Due July 11, 2014


    Send copies of all Capital Leases to Bryan Archer

    New Email Address:

    [email protected]

    Capital Leases


    • Construction-In-Progress

    • Items under construction at June 30, 2014, with a total contract price of $100,000 or greater

    • Amounts should include retainage

    • Required documentation is listed in the form instructions

    Form 11


    Completed Construction-In-Progress

    If items are in use as of June 30, 2014, then they should be considered complete and entered in the Fixed Assets System and depreciated regardless of payment status.

    Form 11a



    Capital Asset Entry Into WVFIMS

    • Enter assets carefully and accurately

    • Run Potential Assets report

    • Correcting a Capital Asset:

      • Within 30 days of entry agency can make necessary change

    • Review retirements to ensure they are completed


    Capital Asset Entry Into WVFIMS

    • Agencies should be recording assets throughout the fiscal year as they are purchased

  • CAPITAL ASSETS IN WVFIMS

  • by June 29, 2014

  • WVFIMS WILL BE INQUIRY ONLY AFTER JUNE 30, 2014


  • Inventory Management Certification Cover Sheet

    • Inventory = Capital Assets

    • State Code 5A-3-35

    • SUBMIT to Purchasing no later than

    • July 15, 2014

    • Physical inventory every 3 years


    • WVFIMS Fixed Asset Training Manual can be downloaded and printed from the Surplus Property Website:

  • www.state.wv.us/admin/purchase/surplus

  • Click on Inventory Management,

    • then select the training manual.


  • I 9 form employment eligibility verification
    I-9 FORM – Employment Eligibility Verification

    • Documents that a person is authorized to work in the United States.

    • All employees hired after November 6, 1986, and working in the United States must complete this form.

    • Employers must retain the I-9 form for three years after the date of hire or one year after the date employment ends, whichever is later.


    Payroll documentation
    Payroll Documentation

    OR

    AND

    • List C

    • Social Security Card

    • State issued Birth

    • Certificate

    • List A

    • Passport

    • Permanent

    • Registration Card

    • List B

    • Drivers License

    • US Military Card

    • Student ID


    • AGENCY’S RESPONSIBILITY

      • Fixed Assets June 29, 2014

      • Leave Information July 11, 2014

      • SEFA Software July 31, 2014

      • Transmittal/Forms July 31, 2014



    Implementation of the following gasb s
    Implementation of the following GASB’s:

    • GASB 67 – Financial Reporting for Pension Plans (an amendment of GASB Statement No. 25)

      Effective Periods Beginning after June 15, 2013

    • GASB 70 – Accounting and Financial Reporting for Non Exchange Guarantees

      Effective Periods Beginning after June 15, 2013


    • Upcoming GASB’s

    • GASB No. 68 – Accounting and Financial Reporting for Pensions (an amendment of GASB Statement No. 27)

    • Effective Periods Beginning after June 15, 2014

    • GASB No. 69 – Government Combinations and Disposals of Government Operations

      • Effective Periods Beginning after December 15, 2013

    • GASB No. 71 – Pension Transition for Contributions Made Subsequent to the Measurement Date (an amendment of GASB Statement No. 68)

      • Effective Simultaneously with the Provisions of Statement 68


    New pension gasbs
    New Pension GASBs

    GASB 67

    Financial Reporting for Pension Plans

    (an amendment of GASB Statement No. 25)

    Effective for Periods Beginning after June 15, 2013

    GASB 68

    Accounting and Financial Reporting for Pensions

    (an amendment of GASB Statement No. 27)

    Effective for Periods Beginning after June 15, 2014


    Gasb 67 68
    GASB67/68

    Revises existing standards of financial reporting for most pension plans and establishes standards for measuring and recognizing liabilities, deferred outflows of resources, deferred inflows of resources, and expenses/expenditures.


    Current financial reporting
    Current Financial Reporting

    • Accounting liabilities are identical to the funding liabilities:

      • Single Employer Plans – State records a liability, Net Pension Obligation (NPO), on their books for the difference between actual contributions made and the Actuarially Required Contribution (ARC).

      • Multi-employer Plans (i.e. PERS) – State discloses in the Notes the amount of contributions in the prior three (3) fiscal years. No liability is recorded.


    Basic terminology changes
    Basic Terminology Changes

    • Employers recognize the Net Pension Liability (NPL) on their balance sheets (where NPL is code for the Unfunded Accrued Liability based on Market Value of Assets).

      • This replaces the Net Pension Obligation (NPO) that is currently being recorded.


    Basic terminology changes1
    Basic Terminology Changes

    Employers will recognize a new measure of the Pension Expense (PE) on their income statements, which will be different from their actuarially determined contributions.

    Annual required contribution is the actuarially determined amount needed to amortize a plan’s unfunded liability over a 30 year period.


    Major changes
    Major Changes

    Pension Expense is no longeran annual contribution or funding amount, rather it is a change in the Net Pension Liability (NPL) recognized from year to year.


    Major changes1
    Major Changes

    Cost Sharing Plans like PERS:

    No longer allowed to just disclose contributions in the notes to the financial statements.

    Each participating employer must report its proportionate share of the net pension liability, pension expense, and deferred inflows and outflows in the financial statements.


    Major changes2
    Major Changes

    Special Funding Situations:

    • Nonemployer entities that contribute to pensions of public sector employees (i.e. states that fund teachers’ retirement systems)

      • Obligations to contribute that are not dependent on events or circumstances unrelated to the pension plan.

      • The nonemployer entity is the only entity with a legal obligation to make contributions directly to a pension plan


    Additional disclosures notes
    Additional Disclosures - Notes

    Notes to the Financial Statements:

    • Components of Total Pension Liability (TPL) &Net Pension Liability (NPL), Net Position, and Ratio of Assets to TPL.

    • Description of each method and assumption used in calculating the actuarially determined contribution.

    • Investment policy, asset allocation, the assumed long-term investment rate of return (discount rate), and how it was determined.

    • Sensitivity of the NPL to changes in the discount rate illustrated by showing a 1% increase and a 1% decrease in the discount rate.


    Additional disclosures rsi
    Additional Disclosures – RSI

    • Required Supplementary Information (RSI) for each of the most recent 10 fiscal years to be disclosed includes:

      • Sources of changes in the Net Pension Liability (NPL)

      • Information about the components of the NPL, including total pension liability, assets, net pension liability, payroll, and related ratios.

      • History of annual money-weighted investment rates of return.

      • Changes in benefits, assumptions, and membership.


    Measurement date
    Measurement Date

    • Employers should report in their financial statements a net pension liability (asset) determined as of a date (measurement date) no earlier than the end of the employer’s prior fiscal year for each defined benefit pension plan in which they participate.

    • The measurement date used should be consistentlyappliedfrom period to period.


    Impact of gasb 67 68
    Impact of GASB 67/68

    • Accounting liability will exceed the funding liability.

    • Pension costs will be more prominent and appear more volatile.


    Public university example
    Public University Example

    Public University participates in a cost-sharing multiple-employer defined-benefit plan sponsored by the State of West Virginia. Public University is implementing GASB Statement 68 during the year ended June 30, 2015. The cost-sharing plan also has a fiscal year-end of June 30th and implemented the provisions of GASB Statement 67 during the year ended June 30, 2014. Public University’s financial statements are a single-year presentation.

    In accordance with GASB Statement 68, the measurement date for Public University must be as of a date no earlier than the end of its prior fiscal year. Since Public University and the Plan have the same year end. Public University may elect to use June 30, 2014 or June 30, 2015 as the measurement date. However, once selected, the measurement date should be consistently applied from period to period.


    Gasb 71

    GASB 71

    Pension Transition for Contributions Made Subsequent to the Measurement Date

    Implemented with GASB 68


    Deferrals related to pensions
    Deferrals Related to Pensions

    • If it is not practical for a government to determine all applicable deferred inflows and deferred outflows of resources related to pensions then a government should:

      • Recognize a beginning deferred outflow of resources for its pension contributions made subsequent to the measurement date of the beginning net pension liability but before the start of the government’s fiscal year.


    Deferrals related to pensions1
    Deferrals Related to Pensions

    • Additionally, in those circumstances, no beginning balances for other deferred outflows of resources and deferred inflows of resources related to pensions should be recognized.


    Reminder
    REMINDER

    • GASB 67 – Pension Plans are required to meet the new standards this year.

    • GASB 68 – Employers are required to meet the new accounting standards for Fiscal Years beginning after June 15, 2014.

    • GASB 71 – Implements with GASB 68



    Questions
    QUESTIONS

    Darden Greene [email protected]

    Kay Walden [email protected]

    Connie Byrne [email protected]


    Gasb 69
    GASB 69

    Government Combinations and Disposals of Government Operations

    Effective Periods Beginning after December 15, 2013


    Gasb 691
    GASB 69

    • Mergers, Acquisitions, Transfers, and Disposals

    • Establishes accounting and financial reporting standards related to government mergers, acquisitions, transfers and disposals of government operations


    Acquisition value and consideration
    Acquisition Value and Consideration

    • Consideration > Acquisition value rather than fair value measurements

      • Exceptions to this

        • Deferred outflows of resources (carrying values)

        • Investments (fair value)

        • Postemployment benefits, comp abs (use existing guidance)


    Note disclosure for all types
    Note Disclosure for All Types

    • Give basic information

    • Description of facts and circumstances

    • Total expenses, revenues, and net position


    Gasb 70
    GASB 70

    Accounting and Financial Reporting for Non Exchange Guarantees

    Effective Periods Beginning after June 15, 2013


    Gasb 701
    GASB 70

    • Accounting and Financial Reporting for Nonexchange Transactions

    • Governments occasionally extend or receive financial guarantees on obligations of other entities without receiving or paying equivalent value for the guarantees (nonexchange financial guarantee)

    • Guarantees of this nature are intended to provide an additional assurance to bondholders and serve to minimize their credit risk


    Gasb 702
    GASB 70

    • Applies to governments that extend a nonexchange financial guarantee

    • Does not apply to guarantees related to special assessment debt

      • Factors, include, but are not limited to

        • Initiation of bankruptcy

        • Breach of debt, or other indicators of financial difficulty


    Recognition
    Recognition

    • Show as a liability, if more likely than not that a payment will be required

    • If similar arrangements are being made, the “more likely than not” determination should be made on the group

    • Liabilities are recognized under modified accrual with expendable available resources

    • Governments receiving nonexchange guarantees recognize revenue when released from the obligation


    Measurement
    Measurement

    • When a liability is recognized, measure at

      • Best estimate of the discounted present value of the future outflows expected to be incurred

      • If no best estimate, but a range exists, the minimum amount of that range


    Disclosures
    Disclosures

    • For all extended nonexchange financial guarantees by type-description of the guarantee

    • When liabilities recognized or payments made during the period

      • Description of timing and recognition of measurement

      • Reconciliation of amounts recognized

      • Cumulative amounts paid

      • Amounts expected to be recovered

    • Received Nonexchange Financial Guarantees by type of Obligation

      • Name of guarantor, amount of guarantee, length of time of guarantee, payments during period, cumulative payments, description, and outstanding requirements to repay


    • AGENCY’S RESPONSIBILITY

      • Fixed Assets June 29, 2014

      • Leave Information July 11, 2014

      • SEFA Software July 31, 2014

      • Transmittal/Forms July 31, 2014


    This PowerPoint presentation is available at

    www.wvfinance.state.wv.us/gaapppt1.htm



    Unaudited Agencies 2014Closing Process

    Training


    ad