Changes impacting debt issues for government entities

Are you, as well as other key personnel, aware of the new amendments? In February 2019, the Securities and Exchange Commission (SEC) amendments to Rule 15c2-12 went into effect for those entities that issue bond debt. This requirement is on new bond obligations being issued now and, in the future, and not a requirement for …

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Why is government so slow? Expectation vs. reality

Why is government so slow? Have you ever been asked this question by those your government entity serves? Maybe someone has asked this via email or commented on your social media account. Thanks to how connected we are, governments and their constituents are able to interact more than ever. The digital age also allows us …

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The benefits of timely financial reporting

It’s the holiday season – you’re busy, your staff is busy, life is full of interruptions, and for you December 31 ending governments out there, you’ve still got to close your books at year-end. There’s only so much time between your actual year-end, when your entity is really performing closing entries to begin your annual …

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New fiduciary fund accounting: are you prepared?

The way governments have reported their fiduciary activities has varied at times and sometimes, they are not reported at all. GASB Statement 84 aims to correct this as well as other items effecting the fiduciary accounting world. Now is the time for an evaluation of all your activities to determine whether this GASB statement will …

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Considerations for new revenue, expense recognition

GASB is currently looking to address expanded guidance on revenue for classification and recognition through one of two primary ways: Exchange/Non-Exchange Model, or Performance/No-Performance Obligation Model This blog will provide a brief overview of the Exchange Model. The Exchange Model The Exchange Model classifies an exchange transaction as when each party receives and gives up …

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Recording prepayments and immaterial inventory supplies

In governmental accounting, the presentation of prepayments and immaterial inventory supplies on the fund statements balance sheet (using the current financial resources measurement focus) is optional. The balance sheet only includes financial assets, defined as cash or something that will convert to cash in due course. Prepayments and immaterial inventory supplies can fall in this …

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U.S. company’s big payout to the SEC

Why is a U.S.-based wire and cable making company paying out $6.5 million in penalties to settle accounting violations with the Securities and Exchange Commission (SEC), in addition to more than $75 million to resolve allegations? General Cable Corporation has been in violation of the Foreign Corrupt Practices Act. The company’s overseas subsidiaries had been …

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Performing a Monthly Bank Reconciliation

A bank reconciliation compares the transactions that occurred in the organization’s bank account to the transactions that occurred in the organization’s general ledger or accounting software. It is important to note that the ending cash balance for the bank account is referred to as the “bank balance” and the ending cash balance for the organization’s …

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A Lesson Learned…Hopefully

Recently, it was discovered that the State of New Mexico’s bank account was not fully reconciled, to the tune of $100 million, give or take. You’re probably asking yourself the same thing I am, “How does this even happen?” The State was asked the same question and fingers were pointed, and blame was passed all …

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Fraud Risk Assessments in Government

You may have heard your auditor ask you in the past whether management is doing a fraud risk assessment on a regular basis.  You may also have heard them ask how often the results of that assessment are being communicated to your board.  In many of the governmental entities we’ve done fraud questionnaires with, it …

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