Gregory Allison, Author at Death and Taxes

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ARP Accounting and Financial Reporting in North Carolina

October 21, 2022 / Gregory Allison / Comments Off

Accounting and financial reporting guidance for American Rescue Plan monies seems to be a never-ending soap opera with constant twists and turns. While there is extensive GAAP-guidance for government mandated nonexchange transactions related to asset, liability, revenue, and expense/expenditure recognition, it has proven more challenging to readily fit all the square evolving ARP guidelines and options into the GAAP round holes. This blogpost focuses on asset, liability, revenue and expense/expenditure recognition guidelines for the various ways that ARP funds may be received, managed, and expended.

Are You Certifiable 2.0?

October 22, 2018 / Gregory Allison / 0 Comments

This is a revised and updated version of the “Are You Certifiable?” that was posted in “Death & Taxes” on November 11, 2016. This post reflects the new online process for testing in the North Carolina Finance Officers Certification Program, as well as the overall process and requirements to obtain certification recognition. The previous version of the blogpost has been removed.

The above question has been posed to me time and again over the years, probably for obvious reasons! (And the quick answer is…yes, I am! But I digress…) However, it was not posed from the perspective of how I am using it in this context. One of the most common phone calls or e-mails that I receive on a regular basis relates to the North Carolina Finance Officers Certification Program. As more and more baby boomers have their retirement lunches and collect their gold watches (click here for more on that topic!), the turnover in local government finance across the state and the infusion of newly minted local government finance employees has contributed to the exploding interest in this program. This blog focuses on the specifics of the program, educational and testing requirements, and other frequently asked questions. This is an updated version of a previously posted blog about the certification program to address the new by-laws and the introduction of the online testing format.

Of Interest to You

January 30, 2018 / Gregory Allison / 0 Comments

In November 2017, the Governmental Accounting Standards Board (GASB) issued an Exposure Draft entitled Accounting for Interest Cost during the Period of Construction. The GASB is proposing a standard that would significantly change the way certain interest costs are accounted for during the period of construction of capital assets. And (for once) for the better! If approved in its current form (and I do not anticipate any real challenges to this proposal), governmental entities would simply recognize interest as an expense or an expenditure in the period it’s incurred, whether or not it is during the construction period. As such, there would be no further interest capitalization to calculate and report.

It’s the Lease of My Worries!

November 7, 2017 / Gregory Allison / 0 Comments

The Governmental Accounting Standards Board (GASB) recently released GASB Statement No. 87, Leases. This project is a bit unusual in that it basically mirrors a similar recent project of the Financial Accounting Standards Board. In the end, both the private sector and the public sector will be accounting for operating lease arrangements in basically the same way. When implemented, this standard will change how the accounting and financial reporting is done for most operating lease arrangements, with very limited exceptions. The standard will not affect, however, how capital lease arrangements are currently accounted for and reported.

What Fun Awaits?

July 19, 2017 / Gregory Allison / 0 Comments

The Governmental Accounting Standards Board (GASB) apparently never slows down! The past several years have seen an explosion of activity that includes significant changes to governmental financial reporting – and there is MUCH more to come! A future blog post will focus on the most recently approved pronouncement – GASB Statement No. 87, Leases, which provides guidance for lease contracts for nonfinancial assets, and is consistent with private-sector lease requirements recently approved by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). This blog post, however, is a quick peek into the current GASB agenda and the expected timelines for those projects.

You Are Doing WHAT to the Governmental Funds?? – Part 3, The Long-Term Approach

May 2, 2017 / Gregory Allison / 0 Comments

Yogi Berra said it best. “It’s déjà vu all over again.” That is what should come to everyone’s mind upon reviewing the third measurement focus and basis of accounting proposal from the Governmental Accounting Standards Board’s (GASB) recent Invitation to Comment (ITC), Financial Reporting Model Improvements – Governmental Funds. As was noted in the previous blog post You Are Doing WHAT to the Governmental Funds?? – Part 2, the Short-Term Approach, each proposal is moving further and further away from the current financial resource measurement focus and the modified accrual basis of accounting currently used in the governmental funds. Well, this is an all-out retreat!! In fact, it is also being referred to as the total financial resources approach.

You Are Doing WHAT to the Governmental Funds?? – Part 2, The Short-Term Approach

April 18, 2017 / Gregory Allison / 0 Comments

In our last chapter, You Are Doing WHAT to the Governmental Funds?? – Part 1, The Near-Term Approach, we explored one of the three new measurement focus and basis of accounting (MFBA) options being considered for the governmental funds. These approaches are presented in the Governmental Accounting Standards Board’s recent Invitation to Comment (ITC), Financial Reporting Model Improvements – Governmental Funds. And you thought it was a scary chapter!?? The suspense continues with the second MFBA proposal – the short-term (or working capital) approach. One spoiler alert (but it is for your own good) – each approach goes further away from the current resource measurement focus and modified accrual basis of accounting currently used by the governmental funds. (Just wait until you read Part 3….)

You Are Doing WHAT to the Governmental Funds?? – Part 1, The Near-Term Approach

April 4, 2017 / Gregory Allison / 0 Comments

In my previous post, Invitation to Comment – or Invitation to Disaster?? The Long Slog to a New Financial Reporting Model Begins!, I provided a fascinating overview of the Governmental Accounting Standards Board’s (GASB) new financial reporting model project. As was noted, the actual Invitation to Comment (ITC), Financial Reporting Model Improvements – Governmental Funds is a first step in the long due process of developing a new GAAP standard. As is the case here, an ITC usually provides an opportunity for the GASB to solicit feedback on various proposal considerations. A significant aspect of the reporting model project is the reconsideration of the unique measurement focus used in the governmental funds (current financial resources). The ITC details three new measurement focus approaches to consider – the near-term approach, the short-term approach, and the long-term approach. This post, focusing on the near-term approach, is the first in a series that will provide (hopefully) a clearer insight into the plotting that is occurring in Norwalk.

Invitation to Comment – Or Invitation to Disaster?? The Long Slog to a New Financial Reporting Model Begins!

March 7, 2017 / Gregory Allison / 0 Comments

Well, it was inevitable. While we all are still reeling from the fun that has been GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments that was issued in June 1999, another chapter in the never-ending saga has begun. Yes, the Governmental Accounting Standards Board (GASB) recently added a new financial reporting model project to their official agenda. Now, the good news is that this type of project takes time – lots of time. The project that culminated in GASB Statement No. 34 was a 15-year process. The first implementers of GASB Statement No. 34 did so 15 years ago. So, one would hope that this is the beginning of another 15 year adventure and, at the end, most of us will be retired. Well, no such luck this time. While we do have time to possibly retire, the potential release of a new reporting model standard is currently slated for November 2021, with implementation certainly several years after that. However, we are not looking at a 15-year process.

Whose Assets Are They Anyway?

February 6, 2017 / Gregory Allison / 0 Comments

The Governmental Accounting Standards Board (GASB) issued GASB Statement No. 84, Fiduciary Activities the last week in January 2017. Obviously, this is breaking news – stop the presses! The standard is the culmination of a long-term, wide-ranging project to address accounting and financial reporting for the following:

Pension plan assets that are entrusted (GASB Statement No. 67 and

GASB Statement No. 68)

Pension plan assets that are not entrusted (GASB Statement No. 73)
Other postemployment plans (OPEB) assets that are either entrusted or not entrusted (GASB Statement No. 74 and GASB Statement No. 75)

With GASB Statement No. 84, the GASB provides definitive guidance on how all fiduciary activities of a governmental entity should be reported. It is now definitive that assets that are associated with a fiduciary activity and are legally entrusted should be reported in one of three specific fiduciary fund types. Those assets that are not legally entrusted but still meet the definition of a fiduciary activity are to be reported in a separate fiduciary fund type. This does clear some inconsistencies with fiduciary fund reporting currently where entrusted and non-entrusted assets may be reported in the same fund type (although many of us probably never lost much sleep over it).