GASB #34 – Annual Financial Report

1. GASB #34 – Annual Financial Report What you need to know Presented by: Bonnie L. Kabonick, Chief LECS Comptroller’s Office School Finance Division bkabonick@state.pa.us Mary Kay Beer, Chief LECS Comptroller’s Office School Accounting Section mbeer@state.pa.us

2. FYI • With the implementation of Phase II, there will be over 400 LEAs using the new reporting model • Early implementation is encouraged • Schools required to implement in Phases I & II will not be given access to the “traditional” AFR reporting package • Schools that do not complete the package in compliance with the new reporting model will have their files returned and will be considered not filed

3. Required Reporting • MD & A – separate reporting method • Basic Financial Statements (BFS) –prepared using Access database • Schedules - prepared using Access database • Revenue and Expenditures – prepared using Access database • Note Disclosures to the Financial Statements – separate reporting method • Package will be available on the web

4. A Look at the Statements • Two Government Wide Statements • Statement of Net Assets (Government Wide) • Statement of Activities (Government Wide) Report financial data using the full Accrual basis of Accounting

5. Old and New Statements • Fund Financial Statements • Similar to traditional statements • Reported using the modified accrual basis • Presented using the Major and Non Major fund criteria • Reconciliation Statements (2) • Provide a link from Fund Financial Statements to Government Wide Statements

6. Old and New (continued) • Budget and Actual Statement – additional column that reports Final budget • Statement of Net Assets • Proprietary Funds – reported using the full accrual basis of accounting and the Major and Non Major criteria • Internal Service fund presented separately

7. Old and New (continued) • Statement of Revenues, Expenses and Changes in Fund Balance – reported using the Major and Non Major criteria • Statement of Cash Flows – reported using the Major and Non Major fund criteria

8. More Statements • Statement of Cash Flows – Presented using the Major and Non Major criteria – accrual basis Internal Service fund reported as a separate column • Statement of Net Assets – Fiduciary Funds • Statement of Changes in Net Assets – Fiduciary Funds

9. Important Information • LEAs must report non current assets and liabilities on the government wide statements. A validation has been built into the database to check for accurate reporting. • The Reconciliation Statements must be completed. A validation will check that this Statement is completed.

10. What else should I know? • You may still use the DFL to load your revenues and expenditures • Revenues and Expenditures will still roll up to the appropriate Statements • Refer to the Major Fund Determination worksheet for the formula to identify Major funds

11. Where can I get help? • The Comptroller’s website:www.pde.state.pa.us/school_acct • The GASB website:www.gasb.org • The PASBO website:www.pasbo.org • Various reference books including the GAAFR, and the Manual of Accounting and Financial Reporting for PA Public Schools (available on the Comptroller’s web site).