1. Special Purpose Governmental Entities (SPGEs) Financial Disclosure Training

2. 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

3. 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

4. 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?

5. 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

6. 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.

7. 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

8. 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

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

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

11. 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))

12. 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

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

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

15. Financial Submissions Include Continued –Audit Due: Beginning Fiscal Year 2015, due no later than 12 months after close of Fiscal Year »All Other SPGEs – July 1

16. 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 96.740 Without Components With Components – Separate Handout

17. Financial Disclosure - Walk Through Login Dashboard Workbooks Budget/Amendments/Year-end financials Audit

18. Login Process

19. Selecting Entity and Type

20. Login

21. Dashboard

22. Enterprise

23. Enterprise - Financial Disclosure Report Download Workbook

24. Enterprise - Financial Disclosure Report Workbook Instructions

25. Enterprise - Financial Disclosure Report Workbook Summary

26. Enterprise - Financial Disclosure Report Workbook Detail

27. Enterprise - Financial Disclosure Report Enter Budget Estimates

28. Enterprise - Financial Disclosure Report Enter Budget Estimates

29. Enterprise - Financial Disclosure Report Enter Budget Estimates

30. Enterprise - Financial Disclosure Report Enter Budget Estimates Verification Screen

31. Enterprise - Financial Disclosure Report Enter Amendments and Line Item Transfers

32. Enterprise - Financial Disclosure Report Enter Amendments and Line Item Transfers

33. Enterprise - Financial Disclosure Report Enter Amendments and Line Item Transfers Verification Screen

34. Enterprise - Financial Disclosure Report Year End Actual

35. Enterprise - Financial Disclosure Report Enter Year End Actual

36. Enterprise - Financial Disclosure Report Enter Year End Actual Verification Screen

37. Enterprise – Water - Financial Disclosure Report Enter Year End Actual

38. 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

39. Uploading Audits

41. Contact Info Department for Local Government Cities & Special Districts Branch 1024 Capitol Center Drive, Suite 340 Frankfort, KY 40601 Toll Free: 800-346-5606 Phone: 502-573-2382 Fax: 502-573-3712 http://kydlgweb.ky.gov/