Performance-Based Budgeting Gaining Interest among States
Eleven states have begun adopting the performance-based budgeting method to distribute budget funds contingent on the measured success of some programs. Known as the “Results First Initiative,” the process calculates a program’s past performance to determine whether a specific budget item is worth the expense. While advocates believe the approach adds accountability and cost-outcome analysis to all state government levels, results so far have been mixed. Since accountability is weighed heavily in the process, success is also measured on compliance by state leaders and agencies when implementing the approach, as well as the projected economic conditions. According to a National. Read More.
GASB Meeting Set for Monday
Planning to continue talks on lease accounting and Preliminary Views, the Governmental Accounting Standards Board (“GASB”) will meet Monday afternoon starting at 1:00 p.m. EST. Stated in its Notice of Meetings, the GASB will focus its lease accounting discussion on sale and leaseback accounting and financial reporting matters. In addition, board members will evaluate chapters of the pre-ballot draft of Preliminary Views, which is expected to be issued in November. To view the Notice of Meetings , visit the GASB website. Also take a moment to check out the Cherry Bekaert Government services industry page.
State Government Alliance Issues Report on Improving Operations
Hoping to enhance the proficiency of state governments, the Alliance to Transform State Government Operations (“the Alliance”) has released a report focusing on areas of potential transformation for such entities. Initially announced during a March summit, four areas the Alliance identified were human capital/workforce of the future; consolidation/optimization/rationalization; enterprise management; and business/data analytics and predictive analysis. After reviewing each focus area, and discussing both barriers and opportunities that can be addressed for operational changes, a framework of actions was created to carry out the transformation process. For the full report and press release , visit the National Association of State Chief Information. Read More.
Users Mixed on Need for GASB Statement No. 42
Collecting information from Governmental Accounting Standards Board (“GASB”) stakeholders, and financial statement users and academics, an independent Financial Accounting Foundation (“FAF”) team recently performed a Post-Implementation Review (PIR) of GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. Through its review, the team concluded that GASB No. 42 completely fixed some but not all issues essential to its need. Specifically, users have differing opinions on whether the standard establishes recognition criteria for impairments and requirements that properly assess the effects of impairments, both of which deemed necessary for capital asset impairments. Also,. Read More.
GASB Adds External Investment Pools to Pre-Research Agenda
Approved at its Friday meeting, the Governmental Accounting Standards Board (“GASB”) has added External Investment Pools to its pre-agenda research plan. In its research efforts, the GASB will review whether the reporting requirements for 2a7-like external investment pools that function as money market funds were impacted by recent Securities and Exchange Commission (“SEC”) regulation changes. The GASB hopes to acquire enough information to help decide whether a project should be added to its current technical agenda. In July, the SEC issued Release No. 33-9616, Money Market Fund Reform; Amendments to Form PF to lower the possibility of investors seeking money. Read More.
Measurement Date Clarity Requested for Reporting Pension Liabilities
As state and local governments prepare financial reports for their pension plans to comply with Government Accounting Standards Board (“GASB”) Statement No. 67, Financial Reporting for Pension Plans—an amendment of GASB Statement No. 25, and No. 68, Accounting and Financial Reporting for Pensions, several accountants are still confused which measurement date to use for recording liabilities. The issue was a hot topic among attendees at this week’s Government Accounting and Auditing Update Conference, attended by Cherry Bekaert Partner Patricia Pryor . Discussing the matter, conference attendee Jeff Markert remarked that state and local governments are confused about which date to use because. Read More.