Financial Accounting Foundation 2016 Annual Report Issued
Now available for download and digital platforms is the Financial Accounting Foundation’s (“the Foundation”) 2016 Annual Report . The report highlights how last year’s standard-setting activities by the Financial Accounting Standards Board (“FASB”) and Governmental Accounting Standards Board (“GASB”) contributed to decisions made by those who rely on financial reporting. In addition, the 2016 Annual Report includes letters from FASB, GASB, and Foundation leaders, an overview of funding sources for all three organizations, and details on what the Foundation did to support standard-setting activities throughout 2016. An interactive digital version of the 2016 Annual Report includes a video for non-technical audiences entitled “The Importance of GAAP.” The tablet-friendly version also features listings of all three organizations’. Read More.
GASB Offers Uniform Guidance on Certain Debt Extinguishment
The latest Governmental Accounting Standards Board (“GASB”) Statement establishes uniform guidance regarding certain debt repayment methods. Issued on May 15, GASB Statement No. 86, Certain Debt Extinguishment Issues, stems from Exposure Draft No. 19-25E, Certain Debt Extinguishment Issues, which was released in August. GASB Statement No. 86 offers state and local governments guidance pertaining to derecognizing debt defeased in substance. When debt is defeased in substance, debt and monetary assets placed in trust do not have to be disclosed in financial statements. However, governments must disclose information about debt defeased in substance in the financial statements’ notes. GASB Statement No. 86 also. Read More.
Fair Pay and Safe Workplaces Nullified
On March 6, the Senate passed Joint Resolution 37, repealing President Obama’s Fair Pay and Safe Workplaces (“FPSW”) executive order, Executive Order 13653. Subsequently on March 27, President Trump issued an executive order revoking Executive Order 13673, section 3 of Executive Order 13683 of December 11, 2014, and Executive Order 13738 of August 23, 2016. The FPSW executive order was issued on July 31, 2014. Originally planned to take effect on October 25, 2016, the executive order required contractors and subcontractors to report certain labor law violations, to provide certain information to employees with their paychecks, and prohibited involuntary arbitration. Read More.
Illinois Budget Issues Impacting Colleges & Universities
Illinois hasn’t had a budget for almost two years, causing a major ripple effect in the state’s education sector. According to an examination released by the Illinois Campaign for Political Reform, reduced educational funding has forced state public colleges and universities to lay off employees, cut staff salaries, and end degree programs. In some cases, higher institutions have had to put staff members on furlough. With no state budget in sight, the situation has caused prospective students to look elsewhere for education, further decreasing enrollment numbers and the financial strength of Illinois colleges and universities. More on Illinois’ budget woes is available at the Nonprofit Quarterly website.
Topics: Colleges & Universities
Jeffrey Previdi Appointed to GASB Vice Chairman
Former Standard & Poor’s Ratings Services municipal bond analyst Jeffrey Previdi has been appointed to Government Accounting Standards Board (“GASB”) vice chairman. Announced on May 17, Previdi will replace outgoing GASB member Jan Sylvis, who is retiring after serving for 10 years on the board. Previdi is expected to continue Sylvis’ outreach efforts to financial professionals and investors regarding the GASB’s standard-setting agenda. Previdi’s tenure as vice chairman begins on Saturday, July 1.
GAO Calls for Improved Grant Monitoring Oversight
According to a study of 75 discretionary grant programs, the U.S. Government Accountability Office (“GAO”) has concluded that the Department of Education grant staff failed to effectively monitor grantee performance. The GAO found that inconsistent grant monitoring has led to around $21 million in discretionary grant funds lacking proper documentation. In particular, 69 of the 75 grants studied were missing key documents such as annual performance reports. As a result of its findings, the Department of Education has agreed to the GAO’s recommendations of implementing detailed written supervisory review procedures and establishing guidance on using the Post-Award Monitoring module. More on the discretionary grants review is available on GAO.gov.