Revised White Paper Issued on Governmental and Business Financial Reporting
Helping distinguish between governmental and business financial reporting, a revised White Paper has been issued by the Governmental Accounting Standards Board (“GASB”). The White Paper, Updated: Why Governmental Accounting and Financial Reporting Is—and Should Be—Different , elaborates that the difference between governmental accounting and reporting standards and the standards for for-profit businesses require independent standards so that the information provided meets the needs of stakeholders when assessing government accountability, as well as to help make political, social and economic decisions. The White Paper also provides guidance on specific questions that typically arise regarding why general purpose governments cannot use accounting standards developed for for-profit businesses. Download the White Paper from the GASB website.
FAF Trustees Continue GASB Scope of Authority Policy
The Financial Accounting Foundation’s (“FAF”) Board of Trustees recently approved the continuation of the Governmental Accounting Standards Board’s (“GASB”) scope of authority policy. The report, Three-Year Review of GASB Scope of Authority: Consultation Process Policy, offers the GASB and FAF’s Standard-Setting Process Oversight Committee a pre-agenda consultation roadmap for deciding whether information the GASB considers for standard-setting purposes fits the board’s standard-setting mission. The report also orders the FAF to assess the consultation process three years after implementation.
2017 Compliance Supplement Issued
In a follow-up to our June 16 blog , the Executive Office of the President Management and Budget has issued the final version of the 2017 Compliance Supplement . The document can be downloaded from White House website.
COFAR Updates Frequently Asked Questions Document on Uniform Guidance
The Council on Financial Assistance Reform has issued a revised frequently asked questions (“FAQs”) document on the Office Management and Budget’s (“OMB”) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200. Updated as of July 2017, the document features 24 new FAQs and four revised FAQs. Download the new FAQs document on OMB’s Uniform Guidance at 2 CFR 200 here.
GASB Issues Exposure Draft for Postemployment Benefits
Proposing implementation guidance regarding postemployment benefits, the Governmental Accounting Standards Board (“GASB”) has released the exposure draft, Implementation Guide No. 201X-Z: Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting). The proposal aims to offer guidance on the requirements under GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended, and GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. It also features rules that would eliminate transition-related guidance at the end of the transition period for GASB Statement No.. Read More.
Topics: GASB, GASB Statement, GASB Statement No. 74, GASB Statement No. 75, Governmental Accounting Standards Board "GASB", Implementation Guide, Other Postemployment Benefits "OPEB", Postemployment Benefits
Recent Office of Management and Budget Actions
The following summary outlines recent actions taken by the Office of Management and Budget (“OMB”): Memorandum M-17-26, Reducing Burden for Federal Agencies by Rescinding and Modifying OMB Memoranda . Last month, the OMB issued a memorandum which marked the dissolution of the Council on Financial Assistance Reform (“COFAR”). The memorandum also eliminates several grants management-related requirements. Change in reporting metrics. The OMB announced that federal agencies no longer have to report the metrics assessing the impact of the Uniform Guidance, as ordered by OMB Memorandum M-14-17, Metrics for Uniform Guidance. Catalog of Federal Domestic Assistance (“CFDA”) expansion. The OMB has postponed its proposed expansion of the CFDA numbering schematic. Future changes. Read More.