The Intermediate Unit GASB #34 Annual Financial Report

1. The Intermediate Unit GASB #34 Annual Financial Report Presented by: Mary Kay Beer, Chief LECS Comptroller’s Office School Accounting Section mbeer@state.pa.us (717) 783-9001

2. FYI There were 27 IUs using the GASB 34 compliant AFR package in fiscal year 2002-03. Of these 27, only 3 had filed by the October 1 due date

3. What to send • A complete AFR submission consists of: • Renamed database file, there is a button on the Main Menu to assist with this process • Send to: schlfin@state.pa.us • Signed cover sheet with original signatures and the printed financial statements • Notes to the Financial Statements –sent to the same address and this can be filed at a later date.

4. Problems reported • Access 2003 incompatibility – get the run time version • Rename and zip function – this function was not overwriting the original file for revisions. • Downloading issues – check with your in school technical support on security limitations, some schools were only downloading partial files due to in house imposed restrictions • Transmitting problems – file size issues imposed in house

5. A Look at the Statements • Two Government Wide Statements • Statement of Net Assets (Government Wide) – problems with Capital Asset inventory • Statement of Activities (Government Wide) – problems with how to categorize revenues Report financial data using the full Accrual basis of Accounting

6. Fund Financial Statements • Similar to traditional statements • Reported using the modified accrual basis • Presented using the Major and Non Major fund criteria – General and Special Revenue funds 23-26 are always Major • Reconciliation Statements (2) • Provide a link from Fund Financial Statements to Government Wide Statements

7. Old and New (continued) • Budget and Actual Statement – additional column that reports final budget – variance is reported between final and actual data • Statement of Net Assets – Proprietary Funds • Enterprise funds – reported using the full accrual basis of accounting and the Major and Non Major criteria, Food Service always major • Internal Service fund presented separately

8. 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 Presented data uses the accrual basis of accounting Internal Service fund reported as a separate column

9. More Statements • Statement of Net Assets – Fiduciary Funds all fund types reported – problems with reporting Activity funds as agency by those entities that did not realize we had reclassified these funds • Statement of Changes in Net Assets – Fiduciary Funds – problems with entities trying to provide a reconciliation for Agency funds when there should be no balance

10. 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 accurately. A brief description detailing the impact and the Statements involved must be entered on the Reconciliation Statements.

12. But my auditor says you’re wrong • Recording accruals and deferrals – it’s owed to me, so it’s mine. Although it may appear that you are entitled to additional revenue due to an audit, both the measurable and available criteria must be met in order to recognize this revenue. • Recording revenues and expenditures – where do I get the backup? • Payment and deduction letters are sent via Penn Link when the payment is made • FAI payment system

13. Internal balances – these do not represent intergovernmental funds transactions but represent monies due to and from governmental and business type activities • Reconciliation Statements – but that’s the number that makes the validation go away Explain the differences between your information presented using the modified accrual accounting method for fund reporting versus the full accrual for the government wide statements

14. Lessons Learned • Fiduciary funds reporting – just trying to be consistent, this year we will have the Fiduciary funds available in a drop down box format Activity funds will still be presented separately • Rounding errors – we will establish a variance to avoid unnecessary validations

15. New for 03-04 • Validations to check: Act 89 revenue verifications on the Act 89 Reconciliation Schedule • Additional schedule to collect Title V, part A revenue (Innovative programs). A validation has been added to check for completion of this schedule. • If you are entering data that refers to a component unit (CU), you will be asked to identify that CU

16. 03-04 Changes • Additional collection of certain objects for consistency • Reporting of termination benefits on the Restricted Indirect Cost Schedule • Delete the Other Fiduciary funds column • Add object code 780 for reporting infrastructure assets • Add revenue code 7291

17. Additional information • There will be an automatic reply when your message is received in our office informing you that your message was received • Problems with attachments will receive a reply indicating the problem • We are requesting the Notes submission as a Word document, sent to the schlfin@state.pa.us address

18. 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).