GASB
STATEMENT 34 ADVISORY COMMITTEE
Minutes
LOCATION Conference Room 222
Wade Hampton State Office Building
Columbia, South Carolina
TIME
10:00 AM
ATTENDEES
Barbara Hevener–South
Carolina Office of Comptroller General (OCG), Program Sponsor
Kathy Glass–KPMG, Program
Manager
Becky Carver–South
Carolina Department of Mental Health (Guest)
Mel Commins–South
Carolina State Treasurer’s Office
Lanna Harris–State Budget
and Control Board, Internal Operations
Billy Martin–South
Carolina Employment Security Commission
Renee Moore–State Budget
& Control Board, Office of Information Resources
Pat O’Cain–South Carolina
Office of Comptroller General, Data Processing
Mike Reeves–South
Carolina Department of Social Services
Don Royal–South Carolina
Department of Public Safety
Bonnie Gunter–South
Carolina Office of Comptroller General (Administrative
Coordination and Minutes)
AGENDA
·
Welcome and Introduction
·
Progress of OCG Efforts
·
October Training Sessions
Ř
Feedback from Advisory Committee Members
Ř
Suggestions for Upcoming Training
·
Discussion of Emerging Issues at the GASB
·
Request for Future Topics
·
Other Questions
Barbara Hevener called the
meeting to order at 10:00 a.m. on Tuesday, November 7, 2000, and
welcomed the members to the meeting.
Mr. Don Royal represented the Department of Public Safety in the absence
of committee member Bruce Dorman.
Barbara called on Kathy Glass to proceed with the meeting.
Kathy asked
members to review the October minutes then called for a motion to approve the
minutes. Pat O’Cain made the motion,
Mel Commins seconded it, and members unanimously adopted the minutes as
recorded.
Kathy presented a summary of
the OCG’s efforts in the following areas:
·
STARS--one-byte internal/external indicator for
batch type 0 documents
Kathy stated that the
Comptroller’s efforts for the fall of 2000 mostly focused on data processing
work that began in August with the design of STARS modifications necessitated
by GASB 34 requirements—specifically, the addition of a one-byte indicator to
the document header on batch type “0” documents (i.e., journal vouchers). The additional field would enable
segregation of internal transactions from external transactions as required by
GASB 34. As an example, some
agencies initially deposit both checks from non-State parties and IDT receipts from
other State agencies into a revenue clearing account. They then later use batch type "0" documents to
distribute the clearing account’s balances to the proper accounts. Kathy explained that the journal voucher
entries to clear the IDT portion of the clearing account’s balances should be
designated as internal whereas the entries to clear the amounts received
from non-State parties should be designated as external. Accordingly, the journal voucher entries to
clear the clearing account’s balances would need to be split into at least two
batches—one designated as internal and another designated as external. Meanwhile, this methodology and several
alternatives were discussed with various parties (General Services, STO, and
other key agencies at the October training sessions), and the consensus was to
use a one-byte indicator field in the document header for Batch “0”
documents. This change should be the
easiest of the options for agencies from the information technology
perspective. Also, changes in
procedures for accountants as a result of this change will be limited to the
batch type “0” transactions. Kathy
stated that everyone seemed comfortable with this decision and, therefore, the
project to add the one-byte indicator field would go forward.
Pat reported that the Comptroller General’s Office had taken the additional one-byte indicator project one step further by posting this new field to the STARS Operating File. He said, “By doing so, it will allow agencies with access to the Agency On-Line Inquiry System to have up-to-date information as to internal vs. external balances on a daily basis.” The indicator will come to the OCG on the STARS journal voucher’s header record for batch type “0” documents but STARS will be programmed to automatically set the indicator to the correct value for other batch types. Data Processing will then post that information to the STARS summary files. Pat stated that agencies would receive additional information regarding these changes (and a few others that are not related to GASB 34) in or around December 2000. The new STARS procedures for journal vouchers will become effective on July 1, 2001.
·
Series Z modifications—early stages
Kathy reported that the OCG’s Data Processing Division also has begun designing modifications to the OCG’s internal Series Z financial reporting system. The OCG uses this system to combine appropriate year-end STARS balances and activity, audited financial statement balances, closing package data, and other adjustments to produce the statewide financial statements in accordance with generally accepted accounting principles. This system must be modified to produce new financial statements at the government-wide level as required by GASB 34 and to effect required changes in the existing fund level financial statements.
·
Selection of report writer software to assist
with financial statement preparation process
Kathy reported that the Data Processing Division also has been working toward selecting and purchasing additional report writer software to more efficiently prepare financial reports and schedules needed for GASB 34 and other purposes.
·
Prepared quarterly reporting form for State
agencies
Kathy informed the members that a quarterly reporting form had been designed for agencies to report their GASB 34 implementation efforts to the OCG. The OCG plans to send the form to agencies in December 2000 along with instructions and explanatory materials. Kathy explained that the form would be simple to complete and would not be voluminous. The quarterly report form requests that agencies identify their most significant GASB 34 issues and outline their progress toward addressing those issues. There also is a section on the form where agencies can report significant roadblocks/issues with which they have difficulty. The completed reports will be used by the OCG to identify where agencies need the most assistance and to provide the OCG with the status of GASB 34 implementation efforts for all agencies/entities. Agencies may select from among a few format options (Word 97/2000, PDF, etc.), and they will be encouraged to submit the information to the OCG via e‑mail, fax, or hard-copy via U.S. mail. The first quarterly report will be due January 8, 2001, and reporting will continue thereafter for each quarter through 2002. Barbara stated that some agency reports might reveal implementation difficulties that neither the OCG nor KPMG has yet contemplated. Further, the quarterly reports will help to keep the OCG’s staff in touch with areas that are problematic to agencies.
·
Initial training segment (overall
awareness/education) completed in October
Kathy reported that the first segment of GASB 34 training for agencies was held in October 2000. Participants had the option of attending either the October 17 or October 25 session. She said that feedback from the approximately 400 participants had been favorable. The OCG was particularly pleased with the fact that approximately 90% of State agencies sent representatives.
·
Initial planning for future training sessions
Kathy requested that the committee help to identify some meaningful topics for discussion for the next segment of GASB 34 training. Although that training was originally scheduled for May 2001, it was suggested that it be changed instead to mid April 2001. The committee concurred. Kathy indicated that it would be desirable for the committee to identify and discuss significant issues within the next few meetings so that the issues and the resolution thereof could be presented to agencies during the upcoming training. Kathy specifically suggested the following as general areas that the committee should discuss prior to the next agency training sessions:
1. Capital assets, including depreciable useful lives;
2. Revenue recognition in general and for specific practical situations; and
3. Changes needed in centralized billing and accounts receivable systems.
Kathy asked the committee for their comments regarding the October 17 and 25 training sessions. The general response from the committee was favorable. Some of the comments are provided below:
1. “The training provided a good overview for top management.”
2. “The sessions helped our agency gain insight into the significance and magnitude of the GASB 34 implementation project.”
3. “Training site was comfortable and convenient
– a good choice.”
Committee members also mentioned two
areas of concern/improvement. They
recommended that the presentation slides for future sessions be in larger
print. Additionally, committee members
expressed concerns related to the timing of OCG specific guidance for
implementation areas for agencies.
When asked to provide suggestions for the next segment of agency training, the majority of the committee members placed capital assets and infrastructure near the top of the list.
Kathy commented
briefly on each of the following issues currently under review by the
Governmental Accounting Standards Board (GASB):
· Program revenue issues
· Segment reporting
· Internal service fund reporting
· General purpose external financial reporting
· Issuance of a guide to state financial statements
· Other issues
Kathy will keep the committee
abreast of developments in these areas as information is made available to her.
Kathy said that she would like
to see the committee set one main topic for each of the advisory committee
meetings during the period January through June 2001. Kathy stated that she would expect the following topics to be
discussed during those months:
1. Capital assets
2. Infrastructure
3. Grants – revenue recognition/classification
4. Others topics recommended by the committee
Renee Moore inquired about the
timeframe and guidelines that will be used for useful lives of depreciable
capital assets. Barbara responded that
the OCG plans to focus on the capital assets area early in 2001. Kathy stated that she hoped this topic could
be discussed in the January or February advisory committee meeting because of
the many changes that agencies must make to their capital asset systems.
There was some discussion with
reference to use of the State’s procurement card for purchases from the General
Services supply warehouse and whether these transactions would be considered
internal or external. Barbara stated
that she would need to research this matter and report her findings at a future
meeting.
Barbara reported that the OCG
soon would be updating the links page on the OCG’s GASB 34 website. She also stated that every effort would be
made to update this page monthly. Some
links that will be added in the near future are those that will answer user
questions regarding:
1. Where can I easily order a copy of GASB 34?
2. How can I order a copy of the Q&A Implementation Guide?
Barbara also reported that
John Campbell of the University of South Carolina had provided her with a
report outlining the approach that the colleges and universities propose
regarding implementation of GASB 34/35.
The college and university controllers’ group developed the report. Barbara complimented the controllers on
making a good group effort to address implementation issues early. The OCG’s Financial Reporting Division will
analyze the issues outlined in the report.
Kathy mentioned that she would
be attending the NASACT Conference in Florida next week. Mel Commins indicated that he also would be
in attendance. Barbara said that she
would join General Lander and Don Lovett for a portion of the conference--a
National Association of State Controllers’ roundtable session dealing
exclusively with GASB 34 implementation issues.
A member asked whether any
states plan to implement GASB 34 early.
Barbara reported that Michigan currently might be the only state
planning to implement GASB 34 early.
Wisconsin and Oklahoma had earlier said that they planned to implement
the statement early, but it is Barbara’s understanding that they no longer plan
to do so.
Due to the Thanksgiving and
Christmas holiday schedule, the group decided to cancel the December
meeting. The next meeting will be held
on Tuesday, January 9, 2001.
Members are requested to meet in Conference Room 222 of the Wade Hampton
State Office Building, Columbia, South Carolina, at 10:00 AM.
Respectfully submitted,
Barbara C. Hevener
/bpg
Enclosures
Click here to view the Agenda provided to Advisory Committee members at the meeting.
Back to main GASB 34 page