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The GAAP Financial Reporting The GAAP Financial Reporting Process Process -- Synergy In ActionSynergy In Action
BUREAU OF FINANCIAL REPORTINGBUREAU OF FINANCIAL REPORTING
David David HassoHasso, CPA, CGFM, CPA, CGFM DirectorDirectorSuzette Baker, CPA, CGFMSuzette Baker, CPA, CGFM Assistant DirectorAssistant Director
November 26November 26--28, 200728, 2007
Office of OperationsOffice of Operations2007 Fall Conference2007 Fall ConferenceSuccess Through SynergySuccess Through Synergy
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OverviewOverview
General BackgroundGeneral BackgroundDefinitionsDefinitionsGASB 34GASB 34CAFRCAFRCAFR CAFR -- Basic Financial StatementsBasic Financial StatementsCurrent GASB StatementsCurrent GASB StatementsOther Financial ReportsOther Financial ReportsSummary/Questions/CommentsSummary/Questions/Comments
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General BackgroundGeneral Background
The Bureau of Financial ReportingThe Bureau of Financial ReportingComprehensive Annual Financial Report (CAFR)Comprehensive Annual Financial Report (CAFR)Financial Condition Report (FCR)Financial Condition Report (FCR)Interim GAAP Financial StatementsInterim GAAP Financial StatementsChapter 551 Functional ReportingChapter 551 Functional ReportingFive Year Comparative Financial StatementsFive Year Comparative Financial StatementsSchedule of Expenditures of Federal AwardsSchedule of Expenditures of Federal AwardsCitizensCitizens’’ GuideGuideCertification of Tax RevenuesCertification of Tax RevenuesLGAC & Oil Spill Fund Financial StatementsLGAC & Oil Spill Fund Financial StatementsImplementation of GASB standardsImplementation of GASB standardsComment on proposed GASB statements and other Comment on proposed GASB statements and other standardsstandards
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General BackgroundGeneral Background
What is GAAP Financial Reporting and why is What is GAAP Financial Reporting and why is it important?it important?
Generally Accepted Accounting Principles Generally Accepted Accounting Principles (GAAP)(GAAP)Chapter 405 of the Laws of 1981Chapter 405 of the Laws of 1981
Report to Legislature Report to Legislature MUSTMUST be be completed by July 29completed by July 29thth
Accounting BasesAccounting BasesCash Basis Reporting (preCash Basis Reporting (pre--1982)1982)Modified Accrual (Fund Accounting)Modified Accrual (Fund Accounting)Full Accrual (GASB 34)Full Accrual (GASB 34)
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DefinitionsDefinitions
GAAP GAAP -- Generally Accepted Generally Accepted Accounting PrinciplesAccounting PrinciplesGASB GASB -- Governmental Accounting Governmental Accounting Standards BoardStandards BoardCAFR CAFR -- Comprehensive Annual Comprehensive Annual Financial ReportFinancial Report--defined formatdefined formatFCR FCR -- Financial Condition ReportFinancial Condition Report‘‘Financial PositionFinancial Position’’ vs. vs. ‘‘Financial Financial ConditionCondition’’
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Definitions (contDefinitions (cont’’d)d)
GFOA GFOA -- Government Finance Government Finance Officers AssociationOfficers AssociationCertificate of Achievement Certificate of Achievement for Excellence in Financial for Excellence in Financial ReportingReportingAFRP AFRP -- Agency Financial Agency Financial Reporting PackageReporting Package
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GASB 34GASB 34
““Basic Financial Statements Basic Financial Statements -- and Managementand Management’’s s Discussion and AnalysisDiscussion and Analysis-- for State and Local for State and Local
GovernmentsGovernments””Financial Reporting presentation similar to Financial Reporting presentation similar to ‘‘forfor--profitprofit’’ sectorsector3 year project started in 20013 year project started in 2001400 page standard400 page standard
More emphasis on Financial ConditionMore emphasis on Financial ConditionCapital Assets included in F/SCapital Assets included in F/SAccrual Basis of Accounting for EntityAccrual Basis of Accounting for Entity--wide wide presentationpresentationManagementManagement’’s Discussion and Analysiss Discussion and AnalysisRequired Supplementary Information Required Supplementary Information (RSI)(RSI)
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CAFR CAFR
““Comprehensive Annual Comprehensive Annual Financial ReportFinancial Report””
Statistics for 2007 CAFRStatistics for 2007 CAFR1.1. $170 billion in entries$170 billion in entries2.2. 162 entries162 entries3.3. 7,300 entry lines7,300 entry lines
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CAFR CAFR
““Comprehensive Annual Comprehensive Annual Financial ReportFinancial Report””
Three Major Sections:Three Major Sections:1.1. IntroductoryIntroductory2.2. FinancialFinancial3.3. StatisticalStatistical
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CAFRCAFR““Comprehensive Annual Comprehensive Annual
Financial ReportFinancial Report””Introductory SectionIntroductory Section1.1. ComptrollerComptroller’’s Letters Letter2.2. Financial OverviewFinancial Overview3.3. Certificate of AchievementCertificate of Achievement4.4. Organization Chart and State Organization Chart and State
OfficialsOfficials
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CAFRCAFR
““Comprehensive Annual Comprehensive Annual Financial ReportFinancial Report””
Financial SectionFinancial Section1.1. ManagementManagement’’s Discussion and s Discussion and
AnalysisAnalysis2.2. Basic Financial StatementsBasic Financial Statements3.3. Required Supplementary Required Supplementary
Information (RSI)Information (RSI)4.4. Other Supplementary InformationOther Supplementary Information
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CAFR CAFR -- Basic Financial Basic Financial StatementsStatements
EntityEntity--wide financial statementswide financial statementsStatement of Net AssetsStatement of Net Assets
Assets, Current, NoncurrentAssets, Current, NoncurrentLiabilities, Current, NoncurrentLiabilities, Current, NoncurrentNet AssetsNet Assets
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CAFR CAFR -- Basic Financial Basic Financial StatementsStatements
EntityEntity--wide financial statementswide financial statementsStatement of ActivitiesStatement of Activities
Expenses & Program RevenuesExpenses & Program RevenuesFunctions/ProgramsFunctions/ProgramsPrimary Government & Business Primary Government & Business Type ActivitiesType Activities
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CAFR CAFR -- Basic Financial Basic Financial StatementsStatements
Governmental FundsGovernmental FundsBalance SheetBalance Sheet
AssetsAssetsLiabilitiesLiabilitiesFund BalancesFund Balances
Statement of Revenues, Expenditures & Statement of Revenues, Expenditures & Changes in Fund BalancesChanges in Fund Balances
RevenuesRevenuesExpendituresExpendituresOther Financing Sources (Uses)Other Financing Sources (Uses)
ReconciliationsReconciliations
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CAFR CAFR -- Basic Financial Basic Financial StatementsStatements
Enterprise FundsEnterprise FundsStatement of Net AssetsStatement of Net Assets
AssetsAssetsLiabilitiesLiabilitiesNet AssetsNet Assets
Statement of Revenues, Expenses & Changes Statement of Revenues, Expenses & Changes in Fund Net Assetsin Fund Net Assets
Operating Revenue/ExpensesOperating Revenue/ExpensesNonNon--operating Revenues/Expensesoperating Revenues/ExpensesOther Revenues and TransfersOther Revenues and Transfers
Statement of Cash FlowsStatement of Cash Flows
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CAFR CAFR -- Basic Financial Basic Financial StatementsStatements
Fiduciary FundsFiduciary FundsStatement of Fiduciary Net AssetsStatement of Fiduciary Net Assets
AssetsAssetsLiabilitiesLiabilitiesNet AssetsNet Assets
Statement of Changes in Fiduciary Net Statement of Changes in Fiduciary Net AssetsAssets
AdditionsAdditionsDeductionsDeductionsChange in Net AssetsChange in Net Assets
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CAFR CAFR -- Basic Financial Basic Financial StatementsStatements
Discretely Presented Component UnitsDiscretely Presented Component UnitsStatement of Net AssetsStatement of Net Assets
AssetsAssetsLiabilitiesLiabilitiesNet AssetsNet Assets
Statement of ActivitiesStatement of ActivitiesExpensesExpensesRevenuesRevenuesChange in Net AssetsChange in Net Assets
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CAFR CAFR Required Supplementary Required Supplementary
Information (RSI)Information (RSI)1.1. Budgetary ScheduleBudgetary Schedule--Financial Plan Financial Plan
to Actualto Actual--General Fund and Special General Fund and Special Revenue FundsRevenue Funds
2.2. Notes to Budgetary Basis ReportingNotes to Budgetary Basis Reporting3.3. Infrastructure Assets using the Infrastructure Assets using the
Modified ApproachModified Approach
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CAFR CAFR Other Supplementary Other Supplementary
Information Information 1.1. Combining Balance SheetCombining Balance Sheet2.2. Combining Statement of Revenues, Combining Statement of Revenues,
Expenditures and Changes in Fund Expenditures and Changes in Fund BalancesBalances
3.3. Combining Schedule of Cash Combining Schedule of Cash Receipts and Disbursements Receipts and Disbursements Budgetary BasisBudgetary Basis--Financial Plan to Financial Plan to ActualActual
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CAFR CAFR ““Comprehensive Annual Comprehensive Annual
Financial ReportFinancial Report””Statistical SectionStatistical Section1.1. DemographicDemographic2.2. EconomicEconomic3.3. MiscellaneousMiscellaneous4.4. Ten year presentation, when Ten year presentation, when
availableavailable
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Current GASB StatementsCurrent GASB Statements
GASB 43 GASB 43 -- Financial Reporting for Financial Reporting for Postemployment Benefit Plans Postemployment Benefit Plans Other Than Pension PlansOther Than Pension Plans
GASB 45 GASB 45 -- Accounting andAccounting andFinancial Reporting by Financial Reporting by Employers for Postemployment Employers for Postemployment Benefits Other Than PensionsBenefits Other Than Pensions
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Current GASB StatementsCurrent GASB Statements
GASB 44 GASB 44 -- Economic Condition Economic Condition Reporting: The Statistical SectionReporting: The Statistical Section
GASB 47 GASB 47 -- Accounting for Termination Accounting for Termination BenefitsBenefits
GASB 48 GASB 48 -- Sales and Pledges of Sales and Pledges of Receivables and Future Revenues Receivables and Future Revenues and Intraand Intra--Entity Transfers of Assets Entity Transfers of Assets and Future Revenuesand Future Revenues
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Current GASB StatementsCurrent GASB Statements
GASB 49 GASB 49 -- Accounting and Financial Accounting and Financial Reporting for Pollution Remediation Reporting for Pollution Remediation ObligationsObligations
GASB 50 GASB 50 -- Pension DisclosuresPension DisclosuresGASB 51 GASB 51 -- Accounting & Financial Accounting & Financial
Reporting for Intangible AssetsReporting for Intangible Assets
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Financial ReportsFinancial Reports
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Other Financial ReportsOther Financial Reports
1.1. Financial Condition Report (FCR)Financial Condition Report (FCR)Presents the StatePresents the State’’s s ‘‘Financial Financial ConditionCondition’’ rather than rather than ‘‘Financial Financial PositionPosition’’The StateThe State’’s Popular Reports Popular Report
2.2. Interim GAAP Basis ReportingInterim GAAP Basis ReportingPrepared quarterly (June, Prepared quarterly (June, September and December)September and December)
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Agency Financial Reporting Agency Financial Reporting PackagePackage--AFRPAFRP
Gross Accounts ReceivableGross Accounts Receivableapproximately 50 agenciesapproximately 50 agencies
Gross Miscellaneous LiabilitiesGross Miscellaneous Liabilitiesapproximately 20 agenciesapproximately 20 agencies
Compensated AbsencesCompensated Absencesapproximately 300 agencies.approximately 300 agencies.
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Agency Financial Reporting Agency Financial Reporting Package OnPackage On--Line SystemLine System
1.1. Agency Financial Reporting Package Agency Financial Reporting Package (AFRP)(AFRP)
Collects information from Collects information from approximately 215 State agenciesapproximately 215 State agenciesUsed for annual and interim Used for annual and interim reportingreporting
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SummarySummary
GAAP financial statements and the CAFR are GAAP financial statements and the CAFR are required to:required to:
1.1. Present timely modified accrual and full Present timely modified accrual and full accrualaccrual--based financial statements to the based financial statements to the public, bond rating agencies, investment public, bond rating agencies, investment banks, etc.banks, etc.
2.2. Critical for recognizing the true financial Critical for recognizing the true financial position and condition of the State.position and condition of the State.
3.3. Critical for determining bond ratings, issuing Critical for determining bond ratings, issuing debt, etc.debt, etc.
4.4. Important for comparability with other Important for comparability with other states.states.
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Questions/Comments?Questions/Comments?
David David HassoHasso (518) 486(518) [email protected]@osc.state.ny.us
Suzette Baker (518) 486Suzette Baker (518) [email protected]@osc.state.ny.us