GOVERNMENT STATUS UPDATE YourGovernment GOVERNMENT STATUS UPDATE Island Government Finance Officers’ Association (IGFOA) Summer meeting, St. Louis, Missouri May 4-10, 2018

(YOUR GOVT) FY 17 Audit Status Describe the current status of your FY17 audit. Insert your comments here Describe any expected changes in your qualifications and findings from prior years. Have you had any unusual challenges for the FY17 audit? How have the GASBs related to pensions and OPEB and tax abatements affected your financial statements for FY17? At this point, do you expect any delays or other problems with your FY17 audit? May 2017 Conference

Status of (YOUR GOVT) action plans Planning Area Major accomplishment Use of Financial Performance Measures Insert your comments here PAFRs/process improvement and innovation Systems Planning Describe the major accomplishment from each area of your action plans as updated in December. (if you do not have a copy of your action plan, you can find it in the Maui conference report at the PITI/VITI web site) Tell us about any problems that you have completing your tasks. December 2016 Winter Conference

(YOUR GOVT) Performance Measures List the IGFOA performance measures where your office consistently achieves your target. Insert your comments here List the IGFOA performance measures where your office has not been able to meet target Which measure areas are most critical to you, as a finance manager? Does your office have performance measures (IGFOA or other) which you consistently report or have plans to report? May 2017 Summer Conference

Why is this measure important?   What is our plan to improve this measure? When do we expect to meet our goal? Select one measure which needs improvement. Present that measure with a graphical trend line to show your change over time There is an example at the end of the presentation May 2017 Summer Conference

(your government) Finance Office Challenges Insert your comments here What is the greatest challenge in your financial operations? Insert your comments here How could you resolve that challenge? How would you measure whether your improvement plan is working? Do you have challenges with cash flow, personnel turnover, a bad system, inadequate training? Or inefficient processes? Think about what you’d fix tomorrow if you had the resources.

(YOUR GOVT) What is one recent finance office accomplishment you would like to highlight? May 2017 Summer Conference

(YOUR GOVT) Department of Finance Performance Measures Target Period Prior Period -2 Prior Period -1 Current Period 0 Trend Notes Audit issue? Cash Management   Reduction in overdue travel advances   ____% reduction from prior period Mntly  Revenue Estimates within target % ____% over or under estimated revenues  Qtrly or Annual? Completion of comprehensive Cash Management Plan 100% completed, approved, & updated  Annual  Select advances issued from January-March 2018 for the current period. Measure any advances still outstanding from that period. Prior period -1 is Oct-Dec 2017 and Prior period -2 is July-Sept 2017 If your government only estimates revenue on an annual basis, then use FY18 to date, FY17 & FY16. Otherwise use the most recent 3 quarters. Indicate which period you are using. The measure is calculated as the difference between estimated and actual divided by estimated. For those governments which had completed or mostly completed their cash plans (Guam & ROP), the internal control review should be updated annually. Most of you still have only partially completed cash plans.  May 2018 Summer Conference

(YOUR GOVT) Department of Finance Performance Measures Target Period Prior Period -2 Prior Period -1 Current Period 0 Trend Notes Audit issue? Grants Management   Number of days to process an invoice paid by federal funds ____days from vendor invoice date to chk date   Average over one quarter Timeliness of SF425 reports ____% of reports filed on time  Qtrly  % & $ of unspent federal funds ___% unspent funds/ total funds  Annual  Most of you are calculating this measure correctly. Be sure to provide your target and the measure in prior periods. Some federal reports are required to be filed only on an annual basis, however, most are quarterly so this measure should be calculated every three months. The number filed on time should include the portion of the reports that the program managers are required to complete. Calculating this measure is complicated by multi-year grants. Some governments split the measure into those grants which are carried over from year to year and those which are clearly one year at a time. The calculation should be fairly straightforward based upon the difference in grant authorizations and grant expenditures as of the period being measured. May 2018 Summer Conference

(YOUR GOVT) Department of Finance Performance Measures Target Period Prior Period -2 Prior Period -1 Current Period 0 Trend Notes Audit issue? Capacity Building   Percentage of personnel evaluations completed  ___% Annual  # of training hours per finance employee ___hrs per employee You select the range of employees you wish to measure (all of the operations you manage or just finance employees) May 2018 Summer Conference

(YOUR GOVT) Department of Finance Performance Measures Target Period Prior Period -2 Prior Period -1 Current Period 0 Trend Notes Audit issue? Reconciliation and Internal Control   Completion of Fixed Asset Inventory 100% completed and AJEs posted  Annual or biannual  Bank Reconciliations completed on a timely basis ___days after month end   Mnthly Reduction in Federal Grant Receivable balance  ___% of federal AR/federal expend Qtrly  Although most governments require a physical inventory only annually or biannually, it is good to track your progress towards completion. For instance, you may start the inventory several months or even quarters before year end. You could track the % of departments which have been completed. Select your most critical bank accounts: payroll, general fund and grants and measure each of those. A bank reconciliation is only “completed” once all adjusting entries posted. If you do not accrue the federal receivables (and few governments do) then calculate the AR as the difference between total federal expenditures and federal revenues. Since most of your governments bill in arrears, there will always be an AR balance, however, the balance should be relatively small to the total expenditures. May 2018 Summer Conference

Before your presentation is finalized be sure to We are asking that you report on all the IGFOA selected performance measures, but please do not expect to read all of them to the group. Each of the measures has an explanation on how to calculate the measure. If you have problems or need additional information, please feel free to contact me in the next week (I will be out of contact from March 25-April 24). Note the columns for Current Period, and Prior Period -1 and -2. If the measure is an annual measure, then the periods would be FY18, FY17 & FY16. If it is a quarterly measure, then use March ’18, December ’17 & September ’17. To the left are examples of the trend arrows you can copy and paste into the trend column. If you wish to highlight the results from each period, you could use red, yellow and green backgrounds in the cell to show not on target, close to target and on target. The next slide is an example of the type of analysis which is expected for Slide #5. Before your presentation is finalized be sure to 1) fill in the name of your government on each slide 2) delete this slide and the two following examples 3) delete the red instruction texts on each slide 4) ensure that the font size is large enough to be read (min 24) May 2018 Summer Conference

Why is this measure important?  To ensure compliance with FMR and show how effective the Finance Office enforce the FMR  What is our plan to improve this measure?   Finance will recommend to the Governor that on a quarterly basis, a listing of the outstanding travel advance will be distributed to all the department heads for appropriate action. When do we expect to meet our goal? State Finance will assign one staff to follow up with the departments’ administrative officers the submission of the travel vouchers. EXAMPLE OF ONE MEASURE WHICH IS HIGHLIGHTED. CONSIDERING THAT 42% IS UNCOLLECTED AND OVERDUE THE GOVERNMENT HAS A VERY POOR RECORD OF COLLECTING AND SHOULD CONSIDER VERY ROBUST ACTIONS TO SOLVE THE ISSUE. EACH MONTH THE SAME ANALYSIS SHOULD BE MADE TO DETERMINE IF THE CORRECTIVE ACTIONS ARE WORKING May 2017 Summer Conference

EXAMPLE www.domain.com