1. Financial Reporting 2007 FMC Conference Georgia Fiscal Managers – The Key to the Best Managed State

2. Agenda  Budgetary Reporting  Getting Ready for Year-End  Financial Reporting Deadlines  Capital Assets/Asset Management  What’s Next?

3. Budgetary Reporting

4. FY 2006  Advent of Program Budgeting  “Fuzzy” Guidance – Legal Level of Control  System Constraints (identifying program)  Resulting lack of Compliance (Auditor’s report)  Letter from COO/CFO/SAO

5. Budgetary Reporting FY 2007  PeopleSoft Redesign (program chartfield)  System Integration (PS/BudgetNet)  Clearer Direction (SAO/OPB Training)

6. Budgetary Reporting Outstanding Issues  Budgeting carry-over funds  Budget Year identification

7. Budgetary Reporting Progress toward resolution  Ongoing collaboration between SAO/OPB in policy development  Agency feedback/validation of options  2008 Control level

8. Getting Ready for Year-End

9. Reconciliations  Subsidiary ledgers to G/L  Bank accounts to G/L All activity is on General Ledger

10. Getting Ready for Year-End Monitor Budgets – Budget Comparison Reports  Revenues  Expenditures

11. Getting Ready for Year-End InterUnit Activity  Queries  Expenditures must be posted for established A/Rs

12. Getting Ready for Year-End  Examine trial balances by funding source  Clean-up – look at balances in “old” funds

13. Getting Ready for Year-End  Analysis of fund balance  Mail all bank confirmations (June 30)  Start (or continue) accumulation of lease data

14. Getting Ready for Year-End Outstanding Issues  I T Expenditures – account 872xxx  PeopleSoft Year-End Closing Entry – Restricted Funding Sources

15. Getting Ready for Year-End PeopleSoft – 2 periods open BE CAREFUL ! Don’t combine budget periods on transactions

16. Financial Reporting Deadlines

17. July 27 – 29: PeopleSoft Close Forms Deadlines:  August 17 Analysis of fund balance (reserves?)

18. Financial Reporting Deadlines Forms Deadlines:  August 24 Revenues based on encumbrances Program/general revenue Allowance for doubtful accounts

19. Financial Reporting Deadlines Forms Deadlines:  August 31 Reserve Requests  September 7 Capital Assets/Depreciation

20. Financial Reporting Deadlines Forms Deadlines:  September 14 Capital/Operating Leases (Includes Lease Agreement Data Forms) General Long-Term Debt  September 21 Cash and Investments

21. Financial Reporting Deadlines Forms Deadlines:  September 28 General and Other Information CPA Reports due October 1

22. Capital Assets/Asset Management

23. History of “Issues” Multiple Initiatives in progress BLLIP AMP Over-arching policy for Capital and other Assets

24. Capital Assets/Asset Management Project (still in infancy) Identification of Key Stakeholders SAO OPB DOAS SPC

25. Capital Assets/Asset Management Areas of Concentration  Leases – Capital and Operating  Small value/“sensitive” assets  CIP – Reconciling with GSFIC

26. Capital Assets/Asset Management Expected Outcomes  Elimination of findings/qualification  Single source of record  Integration among all systems

27. Capital Assets/Asset Management Expected Outcomes  Enhanced, consistent policies  Clearly-defined procedures  Account code/system changes

28. What’s Next?

29. GASB Statement Nos. 43 and 45 – “OPEB”

30. What’s Next? GASB Statement No. 48 - Sales and Pledges of Receivables and Future Revenues and Intra- Entity Transfers of Assets and Future Revenues Pertinent section – Asset Transfers (Assets should not be revalued) Effective FY 2008

31. What’s Next? AICPA Statements on Auditing Standards (SAS) 104-111 “Risk Suite” [Preview of Session on Internal Controls]

32. What’s Next? Risk Suite  Emphasis on management’s risk assessment, monitoring of controls, and responsibility for account balances  Emphasis on proactive programs by management and not just on controls

33. What’s Next? Risk Suite – SAO Response  Evaluation of Requirements  Guidance for State organizations

34. Questions?