Special Purpose Governmental Entities (SPGEs) Financial Disclosure Training

Staff Tony Wilder – Commissioner Russ Salsman- Chief of Staff Matt Frohlich – Branch Manager Darren Sammons – Staff Attorney Linda Lilly – Local Government Advisor Tammy Vernon – Local Government Advisor Lori Wilson – Local Government Advisor

KRS Chapter 65A House Bill 1 passed by the Kentucky General Assembly in 2013 New Chapter of Kentucky Revised Statutes Regulating Special Purpose Governmental Entities (SPGEs) Goal: To provide transparency for the Public Funds held by SPGEs

November 14, 2012 the Auditor of Public Accounts, Adam Edelen, released a report entitled: “Ghost Government: A Report on Special Districts in Kentucky” “for generations no Kentuckian has been able to determine how many Special Districts exist, how much money flows through them, where they are located and whether they are compliant with the law.” APA Edelen Why A New Law?

Ghost Government: Findings More than 1,200 SPGEs SPGEs spend $2.7 billion annually In all but three counties, taxpayers pay more to SPGEs in property taxes than to their county governments

What Does KRS Chapter 65A Do? Defines an SPGE as an entity that: –Exercises less than statewide jurisdiction –Exists for the purpose of providing one or a limited number of services or functions; –Is governed by a board, council, commission, committee, authority or corporation with policy-making authority that is separate from the state and the governing body of the city, county or cities and counties in which it operates. –Has the independent authority to generate public funds or may receive and expend public funds, grants, awards or appropriations from the state, any agency, city, county or SPGE.

What Does KRS Chapter 65A Do? Compels SPGE Registration with the Department for Local Government (DLG) Requires Annual Registration Fee Sets Requirements for Financial Reporting

Registration Required annually –Initial registration completed by December 31, 2013 Annual Registration Fee –Due no later than 15 days after the start of the fiscal year Financial disclosure cannot be entered until the SPGE has registered and paid –If you have not registered please see us after the presentation SPGEs in Registration Database: –Approximately 1,500 entities

Registration Form (SPGE 100) Go to our website: – Click : –Financial Management and Administration –Special Purpose Governmental Entities –Registration –A tutorial is provided to guide you through the registration process.

Registration Fee SPGEs with Annual Revenue of: – Less than $100,000 = $25 – $100, $500,000 = $250 – >$500,000 = $500

Why A Fee? Who: Office of the Auditor of Public Accounts and the Department for Local Government Why: DLG’s portion used for: –Creating, Maintaining & Administering the Registry –Providing Education for the Governing Bodies and Employees of SPGEs –Enforcing Compliance (KRS 65A.020(5)(a))

Financial Submissions Include –Budget System Open: 60 day before the Fiscal Year begins All Other SPGEs – May 1 Due: 15 days after start of Fiscal Year All Other SPGEs – July 15

Financial Submissions Include Continued –Amendments Due: by close of Fiscal Year –All Other SPGEs – June 30

Financial Submissions Include Continued –Year-End Financials Due 60 days after close of Fiscal Year –All Other SPGEs – September 1

Financial Submissions Include Continued –Uniform Financial Information Report (UFIR) Due: May 1 st –Only applies to entities with ad valorem taxing authority –Audit Due: Beginning Fiscal Year 2015, due no later than 12 months after close of Fiscal Year All Other SPGEs – July 1

Who Are You?—Entity Type Entity Type – Determines which form is submitted. –Non-Enterprise with taxing authority –Non-Enterprise without taxing authority –Housing Authorities – Separate Handout Follow Non-Enterprise Process –Enterprise (i.e. sewer, electric, telecom, cable) –Enterprise-Water District –Municipal Utility – Federally Regulated or Public KRS Without Components With Components – Separate Handout

Financial Disclosure - Walk Through Login Dashboard Workbooks Budget/Amendments/Year-end financials UFIR (only for entities with ad valorem taxing authority) Audit

Login Process

Selecting Entity and Type

Login

Dashboard

Non-Enterprise Taxing and Non-Taxing

Non-Enterprise Workbook

Workbook—Non-Enterprise Summary

Workbook - Non-Enterprise Detail

Non Taxing and Taxing - Financial Disclosure Report Entering Budget Estimates

Non Taxing and Taxing Districts - Financial Disclosure Report Enter Budget Estimates

Non Taxing and Taxing - Financial Disclosure Report Entering Budget Estimates

Verification Screen Non Taxing and Taxing - Financial Disclosure Report Entering Budget Estimates

Non Taxing and Taxing - Financial Disclosure Report Entering Amendments and Line Item Transfers

Non Taxing and Taxing - Financial Disclosure Report Entering Amendments and Line Item Transfers

Verification Screen Non Taxing and Taxing - Financial Disclosure Report Entering Amendments and Line Item Transfers

Non Taxing and Taxing - Financial Disclosure Report Entering Budget to Actual

Non Taxing and Taxing - Financial Disclosure Report Year End Actual

Verification Screen Non Taxing and Taxing - Financial Disclosure Report Year End Actual

Taxing - Financial Disclosure Report Entering UFIR Information

Taxing - Financial Disclosure Report Entering UFIR Information

Taxing - Financial Disclosure Report Entering UFIR Information Taxes

Taxing - Financial Disclosure Report Entering UFIR Information Revenues

Taxing - Financial Disclosure Report Entering UFIR Information Expenditures

Taxing - Financial Disclosure Report Editing UFIR Information

Taxing - Financial Disclosure Report Editing UFIR Information

Audits & Attestation Engagements KRS 65A.030 SPGEs with Annual Receipts/Expenditures of: –Less than $100K = Annual Financial Statement + Once every 4 years an Attestation Engagement –$100K -- $500K = Annual Financial Statement + Once every 4 Years an Independent Audit –>$500K = Annual Financial Statement + Every Year an Independent Audit Annual Financial Statements – Remain in the District. Do Not Submit to DLG Audits and Attestation Engagements may be performed by an independent certified public accountant or by contract with the APA

Uploading Audits

Contact Info Department for Local Government Cities & Special Districts Branch 1024 Capitol Center Drive, Suite 340 Frankfort, KY Toll Free: Phone: Fax: