F-66 (WY-2) Annual City and Town Financial Report Charles R. Schmechel, CPA CFE Principal Auditor 307-777-6394 Charles.Schmechel@wyo.gov An auditor is someone who recommends a solution to a problem you didn’t know you had in a way you don’t understand.

Agenda Why do we have to fill out this report every year? The Basic Math How to access the F-66 Common Problems

Wyoming Department of Audit Public Funds Division Wyoming Statute 9-1-507 (a)(iii) “The director of the state department of audit shall: Require…incorporated cities and towns with a population of less than four thousand inhabitants to file with the department such reports of the books and accounts of the…entity…” Chapter 2 Rules “To avoid duplication of effort, the annual census report currently being filed with the federal bureau of the census, or with the department, by all entities required to report to the department, will be utilized by the department to the extent possible to obtain the required revenue, expenditure and financial activity information.”

Cost of Government

The Basic Math Beginning Balance Plus Revenue Less Expenditures Ending Balance

Beginning Balance Does your town conduct any cash transactions between 11:59:59 PM on June 30, 2017 and 12:00:00 AM on July 1, 2017? Your ending balance from last year is your beginning balance this year Beware of Cutoff Issues! Should be your reconciled book balance, not just what’s on bank statements

Activity Revenues Expenditures Debt If you are using an accrual accounting system, you will not balance! When adjustments are made, then everything should balance…

Ending Balance Includes ALL of town’s accounts Bank Accounts CD’s WYO Star Petty Cash Will not necessarily match bank statement Reconciled statement should match town’s books deposits not made outstanding checks

Accessing the Census Publicfunds.wyo.gov

Want a Paper Copy to Practice?

Online Reporting

Online Reporting Census Bureau

Logging In You can call Public Funds at (307) 777-7798 if you need your password reset. Mary Ann, Rich, and Pam have access, auditors do not have access.

Use the Public Access Button

Create this Year’s Report

What do you call a trial balance that does not balance? Common Pitfalls What do you call a trial balance that does not balance? A Late Night You must have the town’s records in good order before attempting to report.

If your general ledger looks like this… Revenue Account Amount County Auto Tax Franchise Fees Water Utility Charges Waste Water Charges Garbage Charges $15,000 -$25 $85,000 $70,000 $30,000

Revenues A fine is a tax for doing wrong. A tax is a fine for doing well. Part I - Local Revenue Part II - Charges and Miscellaneous Revenue Part III – Intergovernmental Revenue Now Includes Line For Lottery and Pari-Mutual funds!

Expenditures Column A- Chart of Accounts Numbers align with Recommended Chart of Accounts in Accounting Manual Columns B and C – Number of positions Column D, E, and F D is for expenses E is construction F is for purchase of equipment, land, or buildings

Debt Outstanding at beginning of year Interest is an expense item, not reported here Additional loans in Less loans paid off Equals debt at end of fiscal year

Cash Include all sources Should match your books Make sure you perform monthly reconciliation Tie the bank statement balance, Outstanding deposits and Outstanding checks Should equal “book” balance

Reserves! Non Spendable Restricted Committed Assigned

Reconciliation Other Differences Accrual to cash - It’s Accrual World! At the end of last year 2016, you had accounts receivable of $1,000. This year, you had income of $5,000, and your accounts receivable was $500 at the end of the year, 2017. What should be reported where? You had $5,000 of revenue. The cash received was $5,500

Accruals, Continued Thus, the ending cash should be $5,500 more than beginning cash Use the Other Differences box to show the $500 difference The 2016 and 2017 balances can be included in explanation of differences: 2016 A/R $1,000 2017 A/R $500 Please schedule out the accruals

Not done yet! Salaries and wages Mill Levy Amount should be included in Expenditures… Do NOT subtract from Expenditure section Mill Levy Other Information: Enterprise Fund Subsidies Data supplied by: Who gets the phone call or email?

Other Tips Save Often! Might be best to have written out, and then entered If not saved often, information could be lost due to inactivity Some inconvenient features are actually controls Keep track where each item on your general ledger goes onto this report. This will create map for subsequent years

Still Having Issues? 1. Check your beginning cash. What did you report last year? What should you have reported last year? 2. Do you have the correct numbers for your revenues? 3. Do you have all the expenditures? 4. Ending cash. When was the last time you reconciled your books to the bank statement? Did you include all your cash accounts? 5. Accruals. What were the accruals on June 30, 2016? What were they on June 30, 2017? Have you accounted for that difference? 6. Materiality. How close are we after having gone through everything?

Final Tips Compare to last year! Show to mayor and council! Relax! Don’t get frustrated!