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It's Not Too Late to Register for the PDC
Staying current with changes in government financial management is a huge challenge. Let AGA help. With dozens of educational sessions, social events and exhibitors available, the PDC is an authoritative source for the knowledge and contacts you need to succeed in today’s constantly changing environment. Don’t miss this opportunity to network with your peers and learn from the best in the business. Show your commitment to a more accountable future–register today! View the complete program and list of speakers.
- Sunday, June 24
- Monday, June 25
- Tuesday, June 26
- Wednesday, June 27

You can register online or print the registration form to register by fax or mail.

PDC Community Service Silent Auction
Now, we all know that change is GOOD and we need to try new and exciting adventures! That’s why this year we’re doing something different in Nashville at the PDC. We are going to hold a SILENT AUCTION to raise money for the National Community Service Fund (NCSF) and a nationally recognized charity.

Last year, over 85 chapters, exhibitors and individuals donated wonderful prizes allowing us to raise $22,055! Proceeds were divided between the American Cancer Society and AGA‘s NCSF. This year our goal is $25,000 (Yes, $25,000!) and we’re asking for your help.

We’re asking each chapter to donate a prize for the auction—something representative of your area, such as a basket of regional items, or something your chapter believes would entice someone to bid. Also, if chapters in the same geographical area want to pool their resources and send one prize from the state—by all means, do that.

Don't forget to bring your chapter checkbooks to participate in our annual Chapter Challenge. Each year, we have a number of chapters challenging each other to donate the most money for our fund raiser. This year, we’re letting you know WAY IN ADVANCE to be ready to play! If you have any questions about the auction or the NCSF, e-mail Renee Gilman See you in Nashville!

June 11, 2007• News from the Profession

AGA Today is Brought to You by AGA Corporate Partner Clifton Gunderson
Clifton Gunderson offices in Washington, D.C., Baltimore, MD and Harrisburg, PA are looking for experienced professionals to join our public sector practice. The ideal candidate will have 5+ yrs of Public Accounting or equivalent audit experience along with your BA/BS in Accounting and CPA or CGFM. Duties will include audits of Federal entities, State & Local audits (GASB), A-133 audits, and compliance auditing. To apply please e-mail Jennifer.Busse@cliftoncpa.com

Two States Working to Sidestep GASB Accounting Rule
Texas Seeks to Ignore GASB 45; Critics Say GAAP Should be Followed
Legislation allowing Texas and public entities within the state to disregard an accounting standard that requires governments to publish their retiree health liabilities on their financial statements is drawing a mixture of criticism and praise. The Norwalk, CT-based Governmental Accounting Standards Board (GASB)—the private organization that promulgated the controversial Statement 45—as well as accounting organizations and other public entity benefit managers predicted that Texas will suffer financially if it does not follow the accounting practice.

The legislation would give Texas and any of its public entities permission to ignore GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The standard requires state and local governments to disclose their liability for benefits that include retiree health, dental and vision benefits and some forms of life insurance. Faced with a projected $50 billion in future retiree health liabilities, Texas lawmakers last month passed H.B. 2365 by nearly unanimous votes, and Texas Gov. Rick Perry is expected to sign the legislation.

The American Institute of Certified Public Accountants said any public entity that forgoes GASB 45 will receive an adverse opinion stating that their financial statements are not in accordance with GAAP. And AGA Executive Director Relmond Van Daniker, DBA, CPA, said, "If you begin to pick and choose which accounting principles you like and don't like, then you don't have generally accepted accounting principles." —Joanne Wojcik, BusinessInsurance.com. Read the entire article.

Bill Would Allow Connecticut to Set its Own Standards
A bill that is now before the Connecticut State Senate would give its state comptroller the legal authority to establish GAAP for the state’s financials, thereby sidestepping GASB—the standard-setter for state and local governments. Connecticut said that GASB’s accounting rules makes it hard to achieve a balanced budget, which is required in Connecticut and other states.

In 1993, Connecticut passed a law that required it to use the standards issued by GASB, but has delayed implementing the rules due to a lack of money, In the 14 years since, Connecticut has amassed a deficit of roughly $1 billion. Adoption of GASB’s standards would mean the state would have to pay down that figure at a clip of $150 million a year, according to reports. —WebCPA. Read the entire article.

AGA Today is Brought to You by AGA Corporate Partner The Graduate School, USDA

AGA Report Calls for Changes in Financial Management
Financial managers spend too much time complying with regulations and too little time helping manage costs and performance, according to a new report. Not only are managers not getting enough meaningful performance information, financial reporting is harmed, said the report by the Association of Government Accountants and accounting firm Grant Thornton. “One near-future possibility is the implosion of the federal financial function, resulting in a surge of disclaimer opinion on annual financial statement reports,” according to James Brimson, the author of the report.
He suggests a new model that provides managers information needed for making sound business decisions: process-based accounting and management. Process-based accounting directly links financial data to performance data. For instance, agencies would capture information about what they pay employees based on experience and training, the amount of time an employee needs to complete a given task, and how much work was completed during the pay period. By putting all that information together, managers and leaders throughout the agency could look up financial and performance reports in different ways and at different times — without affecting the quality of the information. —M.Z. Hemingway, The Federal Times. Read the entire article.

Governors Expect Tighter Budgets in 2008
Only three states ran into red ink this year, while more than half sailed through with higher-than-expected revenues. The best revenue picture in six years may be behind the states. The nation’s governors expect the growth in spending next year to be cut in half from this year’s dramatic high because of a slowing economy and rising costs, especially for health care. Only Michigan, Rhode Island and Wisconsin were forced to make mid-year cuts—totaling $170 million—after their current fiscal 2007 budgets had been approved, according to a June 5 report from the National Governors Association (NGA) and the National Association of State Budget Officers (NASBO). Of that total, $131 million of the shortfall belonged to Michigan, which many economists say is experiencing a one-state recession. The number is small compared to fiscal 2002, when a record 37 states were forced to go back and slash $13 billion to keep their budgets in the black. —Pamela M. Prah, Stateline.org. Read the entire article.

Federal Accounting Corner
Appropriated Financing Sources
Federal Accounting Standards Advisory Board (FASAB) Accounting Standard No. 7, Accounting for Revenue and Other Financing Sources, says, in part (paragraph 7): "Appropriations are accounted for as a financing source when used. The remaining amount of appropriations enacted into law, but not yet recognized as 'appropriations used,' is treated as capital." Accordingly, the Standard General Ledger (SGL) Board has designated account 3101 Unexpended Appropriations – Appropriations Received to hold new appropriations on the proprietary side (credit balance), and when these are used, transaction B134 reduces equity by debiting 3107 Unexpended Appropriations – Used and recognizes the financing source by crediting 5700 Expended Appropriations. These two accounts, 3107 and 5700, always have the same balance. —Simcha Kuritzky, CGFM, CPA. Read the entire column.

Hotlines Offer New Insights into Fraud-Fighting Success
Which came first, the business or the fraud? As long as there have been businesses, there has been corruption and fraud. How long will companies be forced to fight this battle? It’s anyone’s guess. But one thing is certain: as companies grow more sophisticated, so do the crimes against them. Ironically, the tool that has emerged as the best weapon in the fight against fraud is a relatively simple one. In fact, they’ve been around for years—hotlines. Until recently the value of hotlines has been subject to debate. Some companies have implemented hotlines half-heartedly, simply as a means of compliance. Others view their hotline as an earnest response to the call for corporate integrity and responsibility. So is it really necessary to have a hotline? Does a hotline really generate the right information to uncover fraud? New research has emerged that answers these questions with a resounding “yes.” —Andi McNeal, CFE, CPA. Association of Certified Fraud Examiners. Read the entire article.

GASB Issues Statement 50
On May 31, the GASB issued Statement 50, Pension Disclosures, which more closely aligns current pension disclosure requirements for governments (Statements 25 and 27) with those that governments are beginning to implement for retiree health insurance and other postemployment benefits (Statements 43 and 45). Notable among the requirements are: presenting funded status information as of the most recent actuarial valuation in the notes and governments that use the aggregate actuarial cost method presenting a multi-year schedule of funding progress using the entry age method as a surrogate. More info about Statement 50 can be found at on the GASB's website.

AGA's Audio Conference Schedule Set for 2007–2008
AGA is proud to announce its schedule of the popular audio conference series for the 2007–2008 program year. This cost-effective educational tool is only $249 per phone line and attendance is unlimited. Envision a 100-minute radio talk show that provides two continuing professional education (CPE) hours to the listeners. Further, since the last 20 minutes of the program, set for 2-3:50 p.m. Eastern time, is devoted to call-in questions, the audio conference provides interaction between the listeners and speakers. Mark your calendars:

• Aug. 8: Performance Management and Reporting
• Sept. 20: Making the Transition to Management: What It Takes to Succeed
• Nov. 14: Tools for Performance Audit Efficiency
• Dec. 12: Anatomy of Fraud: Case Examples of Greed, Collusion & Override of Controls
• Feb. 6: Internal Controls
• March 5: Environmental Fraud
• March 26: GASB Update
• May 7: Ethics

If you have any questions about the audio conferences, contact Raymond Harris, CGFM, director of Chapter Operations, at 800.AGA.7211, ext. 339.

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Register for AGA's 56th Annual Professional Development Conference & Exposition, June 24 – 27, 2007, Nashville, TN

Register for AGA's Second Annual National Internal Control & Fraud Conference, Sept. 10 – 11, 2007, Atlanta, GA

© Association of Government Accountants 2007

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