GASB Issues Guidance on Majority Equity Interests
Last month, the Governmental Accounting Standards Board (“GASB”) issued new guidance to help state and local governments with their treatment of equity interests for financial reporting purposes. According to GASB Statement No. 90, Majority Equity Interests, a government entity’s majority equity interest in a legally separate business must be disclosed as an investment if the equity interest meets the definition of an investment. Statement No. 90 is effective for reporting periods starting after December 15, 2018. Early application is encouraged. More on Statement No. 90 is available in the GASB press release.
North Carolina Passes Government-Nonprofits Contracting Reform
Earlier this month, the North Carolina House of Representatives approved a regulatory reform bill that would allow the Joint Legislative Program Evaluation Division to review the obstacles nonprofits face when providing services in accordance with state grants and contracts. The review is the result of research indicating that half of North Carolina nonprofit organizations with government grants and contracts receive late payments from government agencies. That same research also revealed that three-fourths of those nonprofits deal with unnecessary application and reporting requirements.
OMB Proposes Changes to Data Collection Form
The Office of Management and Budget (“OMB”) is currently accepting feedback on proposed changes to the Data Collection Form (DCF) and its instructions. Published in a December 9th Federal Register notice, the proposed changes are necessary due to the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance). As a result, the new DCF and instructions will be effective for fiscal periods starting on or after December 26, 2014, in line with the Uniform Guidance’s effective date. Please note that any audits performed under OMB Circular A-133, Audits of States, Local Governments, and. Read More.