Accountants’ Handbook Special Industries and Special Topics 10th Edition_8 pptx

32.7 NEW DISCLOSURE REQUIREMENTS 32 • 81 Exhibit 32.9 Continued. (b) REQUIRED NOTE DISCLOSURES ABOUT CAPITAL ASSETS AND LONG-TERM LIA- BILITIES. Details should be disclosed in the notes about capital assets and long-term liabili- ties of the primary government, divided into their major classes and between those associated with governmental activities and those associated with business-type activities. Capital assets not being depreciated should be disclosed separately. The following information should be dis- closed about major classes of capital assets: • Beginning- and end-of-year balances, with accumulated depreciation presented separately from acquisition cost • Capital acquisitions • Sales or other dispositions • Current depreciation expense, including the amounts charged to each of the functions in the statement of activities Collections of works of art, historical treasures, and similar assets not capitalized should be described and the reasons they are not capitalized should be given. Disclosures as above should be given for collections capitalized. The following information should be disclosed about long-term debt and other long-term li- abilities, such as compensated absences, claims, and judgments: • Beginning- and end-of-year balances • Increases and decreases, presented separately • The portions of each due within one year • The governmental funds that typically have been used to liquidate other long-term liabilities Whether to make similar disclosures about capital assets and long-term liabilities of dis- cretely presented component units is a matter of professional judgment, depending on each in- dividual component unit’s significance to the total of all discretely presented component units and the component unit’s relationship with the primary government. (c) DISCLOSURES ABOUT DONOR-RESTRICTED ENDOWMENTS. The following in- formation should be disclosed about donor-restricted endowments: • Net appreciation on investments of donor-restricted endowments available for authorization for expenditure by the governing board and how it is reported in net assets • State law about the ability to spend net appreciation • The policy for authorizing and spending investment income, such as a spending-rate or total- return policy (d) SEGMENT INFORMATION. Segment information should be disclosed by governments that report enterprise funds or that use enterprise fund accounting and reporting standards. For purposes of this disclosure, a segment is an identifiable activity (or grouping of activities) re- ported as or within an enterprise fund or another stand-alone entity for which one or more bonds or other debt instruments (such as certificates of participation) outstanding, with a rev- enue stream pledged in support of that debt. (Such disclosure is not required for activities whose only outstanding debt is conduit debt for which the government has no obligation be- yond the resources provided by related leases or loans, and for individual funds reported as major funds.) In addition, the activity’s revenues, expenses, gains and losses, assets, and liabil- ities are required to be accounted for separately. (The requirement for separate accounting should be imposed by an external party; for example, accounting and reporting requirements 32 • 82 STATE AND LOCAL GOVERNMENT ACCOUNTING commonly are set forth in bond indentures.) Disclosure requirements for each segment should be met by identifying the types of goods and services provided and by presenting condensed fi- nancial information in the notes, including the elements in the three subbullets under the sec- ond bullet below: • The kind of goods or services provided by the segment • A condensed statement of net assets: • Total assets, distinguishing between current assets, capital assets, and other assets, with amounts receivable from other funds or components reported separately • Total liabilities, distinguishing between current and long-term amounts, with amounts payable to other funds or components reported separately • Total net assets, distinguishing between restricted net assets––with expendable and non- expendable components reported separately, unrestricted net assets, and amounts in- vested in capital assets, net of related debt • A condensed statement of revenues, expenses, and changes in net assets: • Operating revenues, by major source • Operating expenses, with depreciation and amortization identified separately • Operating income or loss • Nonoperating revenues and expenses, separately reporting major revenues and expenses • Capital contributions and additions to permanent and term endowments • Special and extraordinary items • Transfers • Change in net assets • Beginning net assets • Ending net assets • A condensed statement of cash flows: • Net cash provided by: • Operating activities • Noncapital financing activities • Capital and related financing activities • Investing activities • Beginning cash and cash equivalent balances • Ending cash and cash equivalent balances Whether to provide segment information about component units that use enterprise fund ac- counting and reporting standards is a matter of professional judgment, depending on each indi- vidual component unit’s significance to the total of all discretely presented component units and the component unit’s relationship with the primary government. Governments are encouraged to present a statement of activities disaggregated for their multiple-function enterprise funds beyond that required for segment reporting. Special- purpose governments in only business-type activities are encouraged to do the same. 32.8 REPORTING COMPONENT UNITS When GASB Statement No. 34 becomes effective, discrete presentation of component unit fi- nancial information should be given in the statement of net assets and the statement of activities. However, information on component units that are fiduciary in nature should be included only in 32.8 REPORTING COMPONENT UNITS 32 • 83 the fund financial statements, together with the primary government’s fiduciary funds. Informa- tion required by paragraph 51 of GASB Statement No. 14 about each major component unit can be given by: • Presenting each major component unit other than those that are fiduciary in nature in separate columns in the statements of net assets and activities, • Including combining statements of major component units (with nonmajor component units aggregated in a single column) with the reporting entity’s basic statements after the fund finan- cial statements, or • Presenting condensed financial statements in the notes. The “aggregated total” component unit information, as discussed in paragraph 14 of GASB Statement No. 14, should be the entity totals derived from the component units’ statements of net assets and activities. (Because component units that are engaged in only business-type ac- tivities are not required to prepare a statement of activities, this disclosure should be taken from the information provided in the component unit’s statement of revenues, expenses, and changes in fund net assets.) If component unit information is presented in the notes, the following should be included: • Condensed statement of net assets: • Total assets, distinguishing between capital assets and other assets. Amounts receivable from the primary government or from other component units should be reported separately. • Total liabilities, distinguishing between long-term debt and other liabilities. Amounts payable to the primary government or to other component units should be reported separately. • Total net assets, distinguishing between restricted, unrestricted, and amounts invested in capital assets net of related debt • Condensed statement of activities: • Expenses by major functions and for depreciation expense if separately reported • Program revenues by type • Net program expense or revenue • Tax revenues • Other nontax general revenues • Contributions to endowments and permanent fund principal • Special and extraordinary items • Change in net assets • Beginning net assets • Ending net assets The nature and amount of significant transactions with the primary government and other component units should be reported in the notes for each component unit. 32.9 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A In addition to the information required to be presented as RSI by GASB Statement Nos. 10, 25, and 27, other RSI required to be presented by GASB Statement No. 34 when it becomes effec- tive includes MD&A, budgetary comparison schedules for governmental funds, and information about infrastructure assets reported using the modified approach (see Section 32.6(b)(1)). 32 • 84 STATE AND LOCAL GOVERNMENT ACCOUNTING (a) NEW BUDGETARY COMPARISON INFORMATION. When GASB Statement No. 34 becomes effective, budgetary comparison schedules 5 should present: (1) the original appropri- ated budgets; (2) the final appropriated budgets; and (3) actual inflows, outflows, and balances, stated on the governmental budgetary basis as discussed in NCGA Statement No. 1, paragraph 154. Separate columns may be provided comparing the original budget amounts with the actual amounts, the final budget amounts with the actual amounts, or both. The original budget is the first complete appropriated budget, which may be adjusted by reserves, transfers, allocations, supplementary appropriations, and other legally authorized legislative and executive changes made before the beginning of the reporting year. It also includes appropriation amounts auto- matically carried over from prior years by law. The final budget is the original budget adjusted by all legally authorized legislative and executive changes whenever signed into law or other- wise legally authorized. Information in a separate schedule or in notes to RSI should be provided that reconciles bud- getary information to GAAP information. Notes to RSI should disclose excesses of expenditures over appropriations in individual funds presented in the budgetary comparison, as discussed in NCGA Interpretation No. 6, paragraph 4, as amended by GASB Statement No. 37. (If the bud- getary comparison information is included in the basic statements, these disclosures should be in the notes to the financial statements rather than as notes to RSI.) (b) MODIFIED APPROACH FOR REPORTING INFRASTRUCTURE. A government with eligible infrastructure assets (for subsystems, if any) reported using the modified approach should present as RSI these schedules derived from the asset management systems: • The assessed condition, based on assessments performed at least every three years, for at least the three most recent complete condition assessments, indicating the dates of the assessments • The estimated annual amount calculated at the beginning of the year to maintain and preserve the assets at or above the condition level established and disclosed by the government com- pared with the amounts actually reported as expense for each of the past five reporting periods The following should be disclosed with the schedules: • The basis for the condition measurement and the measurement scale used to assess and report condition. For example, a basis could be distresses in pavement surfaces. A scale could range from zero for a failed pavement to 100 for pavement in perfect condition. • The condition level at which the government intends to preserve its eligible infrastructure as- sets reported using the modified approach. • Factors that significantly affect trends in the information reported in the schedules, includ- ing any changes in the basis for the condition measurement, the measurement scale, or the condition measurement methods used. Also to be disclosed is an estimate of the effect of a change in the condition level at which the government intends to preserve eligible infra- structure assets of the estimated annual amount to maintain and preserve the assets for the current period. A government that has asset management systems for infrastructure assets that gather the in- formation required under this subsection but do not use the modified approach are encouraged to disclose it as supplement information. 32.9 REQUIRED SUPPLEMENTARY INFORMATION 32 • 85 5 Governments may elect to report the budgetary comparison information in a budgetary comparison statement as part of the basic financial statements rather than as RSI. Such an additional statement should include the same items of information that this section requires to be displayed or disclosed. 32.10 BASIC FINANCIAL STATEMENTS REQUIRED FOR SPECIAL-PURPOSE GOVERNMENTS Special-purpose governments are legally separate entities that are component units as described in Section 32.4(c) or other stand-alone governments, which are legally separate government organiza- tions that (1) do not have separately elected governing bodies and (2) are not component units, plus joint ventures, jointly governed organizations, and pools. A special-purpose government that is engaged in more than one governmental program or that has both governmental and business-type activities should meet the reporting requirements for gov- ernments that are not special-purpose governments. A special-purpose government is engaged in more than one governmental program if it budgets, manages, or accounts for its activities as multiple programs, such as a school district that provides regular instruction, special instruction, vocational education, and adult education. (a) REPORTING BY SPECIAL-PURPOSE GOVERNMENTS ENGAGED IN GOVERNMEN- TAL ACTIVITIES. A special-purpose government engaged in a single governmental activity, such as some cemetery districts, levee districts, assessment districts, and drainage districts, may combine its government-wide financial statements and its fund financial statements in a columnar format that reconciles line items of fund financial information to government-wide information in a separate column on the face of the financial statements rather than at the bottom of the state- ments or in an accompanying schedule. Otherwise, the special-purpose government may present separate government-wide and fund financial statements and may present its government-wide statement of activities in a different format. For example, it may be presented in a single column that reports expenses first followed by revenues by major sources. The difference, net revenue or expense, should be followed by contributions to permanent and term endowments, special and ex- traordinary items, transfers, and beginning and ending net assets. (b) REPORTING BY SPECIAL-PURPOSE GOVERNMENTS ENGAGED ONLY IN BUSI- NESS-TYPE ACTIVITIES. A government engaged in only business-type activities should pre- sent only the financial statement required for enterprise funds: • MD&A • Enterprise fund financial statements: • Statement of net assets or balance sheet • Statement of revenues, expenses, and changes in fund net assets • Statement of cash flows • Notes to financial statements • Applicable RSI other than MD&A (c) REPORTING BY SPECIAL-PURPOSE GOVERNMENTS ENGAGED ONLY IN FIDU- CIARY ACTIVITIES. A special-purpose government engaged in only fiduciary activities should present only the financial statement required for fiduciary funds: • MD&A • Statement of fiduciary net assets • Statement of changes in fiduciary net assets • Notes to financial statements A PERS is a special-purpose government that administers one or more defined benefit pen- sion plans and may also administer other kinds of employee benefit plans, such as defined con- tribution, deferred compensation, and postemployment health care plans. One that administers 32 • 86 STATE AND LOCAL GOVERNMENT ACCOUNTING more than one defined benefit pension plan or postemployment health care plan should present combining financial statements for all such plans and, if applicable, required schedules for each plan. (A PERS that administers one or more agent multiple-employer plans applies these re- quirement at the aggregate plan level.) It should (1) present a separate column for each plan on the statement of fiduciary net assets and the statement of changes in fiduciary net assets or (2) present combining statements for the plans as part of the basic financial statements. A PERS should conform with Section 32.6 for all other plans. 32.11 TRANSITION TO THE REQUIREMENTS OF GASB STATEMENT NO. 34 (a) REPORTING GENERAL INFRASTRUCTURE ASSETS AT TRANSITION. Beginning with the effective dates of GASB Statement No. 34, prospective reporting of general infrastructure assets is required in the statement of net assets. Retroactive reporting is encouraged for all major general in- frastructure assets at that date. Such major assets are those that (1) meet the definition of a major asset stated in Section 32.11(c)(i), (2) are associated with and generally arise from governmental ac- tivities (not from proprietary funds and special-purpose governments engaged in business-type ac- tivities), and (3) are long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Retroactive report- ing of such assets is required for governments described in footnote 37 as follows: • Phase 1 governments—fiscal years beginning after June 15, 2005. • Phase 2 governments—fiscal years beginning after June 15, 2006. • Phase 3 governments are encouraged but not required to report them retroactively. If it is not practical to determine the acquisition cost of general infrastructure assets because of inadequate records, a government should estimate and report the acquisition cost of major general infrastructure assets acquired or significantly reconstructed or that received significant improvements in fiscal years ending after June 30, 1980. Methods of estimating such cost and accumulated depreciation are discussed in Sections 32.11(c)(iii) and (iv). Information for networks for which it is available should be reported during the transition period if it is not available for all networks. During transition, these disclosures should be made: • Descriptions of the infrastructure assets being reported and of those not being reported • A description of eligible infrastructure assets the government intends to report using the modi- fied approach (b) TRANSITION TO THE MODIFIED APPROACH FOR REPORTING INFRASTRUCTURE ASSETS. A government may begin to use the modified approach for reporting eligible infrastruc- ture assets when one complete condition assessment is available and the government documents that the assets are being preserved approximately at or above the condition level the government has es- tablished and disclosed. If the three most recent complete condition assessments and the estimated and actual amounts to maintain and preserve the infrastructure assets for the previous five reporting periods required as discussed in Section 32.9(b) are not initially available, the information required by that section should be reported for as many complete condition assessments and years of esti- mated and actual expenses as are available. (c) INITIAL CAPITALIZATION OF GENERAL INFRASTRUCTURE ASSETS (i) Determining Major General Infrastructure Assets. Major general infrastructure assets should be determined at the network or subsystem level based on two criteria: 32.11 TRANSITION TO THE REQUIREMENTS OF GASB STATEMENT NO. 34 32 • 87 1. The actual or estimated cost of the subsystem is expected to be at least 5% of the total actual or estimated cost of all general capital assets reported in the first fiscal year ending after June 15, 1999. 2. The actual or estimated cost of the network is expected to be at least 10% of the total ac- tual or estimated cost of all general capital assets reported in the first fiscal year ending after June 15, 1999. (ii) Establishing Capitalization at Transition. If inadequate records make determining acquisi- tion cost at initial capitalization impractical, acquisition cost may be estimated. (iii) Estimating Acquisition Cost—Current Replacement Cost. If the acquisition costs of assets need to be estimated, their current replacement cost may be determined and reduced back to the ac- quisition year or estimated acquisition year using public-sector or private-sector price indexes. Accu- mulated depreciation on assets being depreciated would be determined based on the reduced amounts. (iv) Estimated Acquisition Cost from Existing Information. Bond documents used to obtain fi- nancing for construction or acquisition of infrastructure assets, expenditures reported in capital pro- ject funds or capital outlays in governmental funds, and engineering documents are examples of other information that may provide sufficient support for establishing initial capitalization. 32.12 GRANT ACCOUNTING (a) DEFINITIONS. A grant is a contribution or gift of cash, or other assets from another govern- ment to be used or expended for a specified purpose, activity, or facility. Some grants are restricted by the grantor for the acquisition or construction of fixed assets. These are capital grants. All other grants are operating grants. An entitlement is the amount of payment to which a government is entitled pursuant to an allo- cation formula contained in applicable statutes. A shared revenue is a revenue levied by one gov- ernment but shared on a predetermined basis with another government. Grants, entitlements, and shared revenues have become major sources of revenues for governments. Frequently, however, special accounting and reporting requirements are associated with these grants. (b) FUND IDENTIFICATION. All grants, entitlements, and shared revenues should be accounted for in one of the seven fund types. The identity of the fund should be based on the purpose or require- ments of the grant. For instance, grants, entitlements, or shared revenues received for purposes normally financed through the general fund may be accounted for within that fund, provided that applicable legal requirements can be appropriately satisfied. Resources received for the payment of principal or interest on general long-term debt may be accounted for in a debt service fund. Capital grants or shared revenues received for capital acquisitions or construction, other than those associated with enterprise and internal service funds, may be accounted for in a capital projects fund. However, it is not always necessary to es- tablish a separate fund for an individual grant, entitlement, or shared revenue. Existing funds should be used to the extent possible in order to comply with the minimal number of funds principle. If a grant, entitlement, or shared, revenue may be used for more than one purpose and the recipi- ent has not determined the purposes for which it intends to use the funds, the resources may be ac- counted for in an agency fund pending determination of their use. When the determination is made, the assets and revenues should be recognized in the appropriate fund and removed from the agency fund. Since most grants, entitlements, or shared revenues are either unrestricted as to purpose or re- stricted to a specific purpose, there is seldom a need to use an agency fund. (c) REVENUE AND EXPENDITURE (EXPENSE) RECOGNITION. Grants, entitlements, and shared revenues recorded in governmental funds should be recognized as revenue when they become 32 • 88 STATE AND LOCAL GOVERNMENT ACCOUNTING susceptible to accrual, that is, measurable and available. Legal and contractual requirements should be carefully reviewed. If the restriction is more form than substance, revenue should be recognized at the time of receipt or earlier. If the grant is earned by the recipient government as funds are expended for a specific restricted purpose, revenue should be recognized when the expenditures are made for that pur- pose. The latter are called “expenditure-driven” grants. Grants, entitlements, and shared revenues received before the revenue recognition criteria are met should be reported as deferred revenue and reported as a liability account in the government’s finan- cial statements. Resources not received should be reported as a receivable if the revenue recognition criteria have been met. If the resources have not been received and the revenue recognition criteria have not been met, the grants should not be reported on the balance sheet at all. They may, however, be disclosed in the notes to the financial statements. Grants, entitlements, and shared revenues that are received by a proprietary fund for operating purposes, or that may be used for operations or capital purposes at the discretion of the recipient gov- ernment, should be recognized as nonoperating revenue when earned. Resources restricted to the ac- quisition or construction of capital assets should be recorded as contributed capital. Operating expenses should include depreciation on all depreciable fixed assets, including assets acquired with contributed capital. Depreciation recognized on assets acquired or constructed with contributed capital may be charged to the contributed capital account by “adding back” the depreci- ation on such assets to net income before closing it to retained earnings. To promote greater consistency with respect to the accounting and financial reporting for grants and similar financial assistance by state and local governments, the GASB issued Statement No. 24, “Accounting and Financial Reporting for Certain Grants and Other Financial Assistance.” Statement No. 24 addresses issues relating to the recognition, measurement, and reporting of grants and other financial assistance received and given by state and local governments including: • “Pass-through” grants • Food stamps and similar voucher programs • “On-behalf ” payments of fringe benefits and salaries 32.13 ACCOUNTING PRINCIPLES AND PRACTICES— PUBLIC COLLEGES AND UNIVERSITIES Public colleges and universities should apply the principles discussed in this chapter. 32.14 AUDITS OF GOVERNMENTAL UNITS Audits of governmental units with financial statements can be performed in accordance with: • Generally accepted auditing standards (GAAS) • Government Auditing Standards (the “Yellow Book”) • The Single Audit Act Amendments of 1996 and OMB Circular A-133 When performing an audit in accordance with GAAS, the guidance contained in the AICPA Pro- fessional Standards is followed. This is the same guidance followed by auditors when auditing the fi- nancial statement of commercial entities and typically results in the issuance of an opinion of the financial statements and perhaps a management letter. Government Auditing Standards, also known as the “Yellow Book” (U.S. Comptroller General, rev. 1994), establishes the concept of an expanded scope audit that includes both financial and compliance features. According to the Yellow Book, a fi- nancial audit can help determine whether: • The financial statements of an audited entity present fairly the financial position and the results of financial operations in accordance with GAAP 32.14 AUDITS OF GOVERNMENTAL UNITS 32 • 89 • The entity has complied with laws and regulations that may have a material effect on the finan- cial statements The Yellow Book incorporates the AICPA Professional Standards mentioned above and sets forth additional standards and requirements, including the following six: 1. A review is to be made of compliance with applicable laws and regulations, as set forth in fed- eral audit guides and other applicable reference sources. 2. The auditor reports on the entity’s compliance with laws, regulations, contracts and shall also include material instances of noncompliance and instances or indications of illegal acts found during or in connection with the audit. 3. The auditors shall report on their consideration of the entity’s internal control structure made as part of the financial audit. They shall identify as a minimum: a. Scope of auditor’s work in obtaining an understanding of the internal control structure and assessing risk. b. The reportable conditions including separate identification of material weaknesses identi- fied as a result of the auditor’s work. 4. Auditors performing government audits are required to obtain 80 hours of continuing educa- tion every two years, of which 24 hours should be directly related to government. At least 20 of the 80 hours should be completed in each year of the two-year period. 5. Audit organizations performing government audits are required to establish an internal quality control system and participate in an external quality control review program. 6. The auditor communicates certain information related to the conduct of the audit to the audit committee or to the individuals with whom they have contracted for the audit. (a) T HE SINGLE AUDIT ACT AMENDMENTS OF 1996. Many state and local governments are required to obtain a periodic audit of the federal funds they receive—usually once a year. The audits are normally performed by an independent CPA or public accountant, or, in some states, by the gov- ernment’s internal audit personnel. A few jurisdictions have an independently elected or appointed auditor who conducts the audit. Single audits are conducted in accordance with GAAS, Government Auditing Standards, and the Single Audit Amendments Act of 1996 and its implementing regulation OMB Circular A-133, including its Compliance Supplement. These requirements have been updated for fiscal years beginning on or after July 1, 1997, by the Single Audit Amendments Act of 1996. The objectives of the Act are: • To improve the financial management of state and local governments with respect to federal fi- nancial assistance programs through improved auditing • To establish uniform requirements for audits of federal financial assistance provided to state and local governments • To promote the efficient and effective use of audit resources • To ensure that federal departments and agencies, to the maximum extent practicable, rely on and use audit work performed pursuant to the requirements of the Single Audit Act Though the single audit builds on the annual financial statement audit currently required by most state and larger local governments, it places substantial additional emphasis on the consideration and testing of internal controls and the testing of compliance with laws and regulations. The Single Audit Act and OMB Circular A-128 require the auditor to determine whether: • The financial statements of the government, department, agency, or establishment present fairly its financial position and the results of operations in conformity with GAAP 32 • 90 STATE AND LOCAL GOVERNMENT ACCOUNTING [...]... MSWLFs’ closure and post-closure consist of the following costs: • • • Equipment and facilities used in post-closure monitoring and care Final cover Maintenance and monitoring the landfill during the post-closure period State and local governments with MSWLFs will be required to disclose in the financial statements the nature and source of landfill closure and post-closure care costs and the fact that... Accounting and Financial Reporting Principles Grant, Entitlement, and Shared Revenue Accounting by State and Local Governments Defining the Governmental Reporting Entity (Superseded) Accounting and Financial Reporting Principles for Claims and Judgments and Compensated Absences Accounting and Financial Reporting Principles for Lease Agreements of State and Local Governments Pension Accounting and Financial... Statements– and Management’s Discussion and Analysis—for Public Colleges and Universities: Amendment of GASB Statement No 34 Recipient Reporting for Certain Shared Nonexchange Revenues: Amendment of GASB Statement No 33 Basic Financial Statements and Management’s Discussion and Analysis—for State and Local Governments: Omnibus Certain Financial Statement Note Disclosures Discussion and Analysis— for State and. .. efficiency and effectiveness of the system; and obtaining and presenting information useful for marketing securities Obtaining a qualified auditor, particularly one who can provide the additional services described above, requires that the selection be based on qualifications and experience, and not solely cost The National Intergovernmental Audit Forum, in its handbook How to Avoid a Substandard Audit:... government accounting and reporting is being thrust into the spotlight and will be scrutinized by a multitude of individuals and groups It is imperative that individuals in the industry realize this fact and begin now to prepare for the future 32.16 SOURCES AND SUGGESTED REFERENCES American Institute of Certified Public Accountants, “Audits of State and Local Government Units,” Industry Audit and Accounting... solid waste and are required to incur closure and post-closure care costs Specifically, the guidance would require recognition of MSWLF closure and post-closure care costs as an expenditure/expense and as a liability in each period in which the landfill accepts waste Recognition would be based on a systematic and rational method that assigns estimated total current costs to periods based on landfill use... Governmental Fund Financial Statements: an Interpretation of NCGA Statements 1, 4, and 5, NCGA Interpretation 8, and GASB Statement Nos 10, 16, and 18 Purpose and Scope of GASB Technical Bulletins and Procedures for Issuance Applying Paragraph 66 of GASB Statement No 3 Disclosures about Derivatives and Similar Debt and Investment Transactions Application of Certain Pension Disclosure Requirements for... performing substandard work and has taken steps to alleviate the problem Government Auditing Standards includes a requirement for auditors performing government audits to meet minimum continuing professional education requirements and for auditing firms to have independent quality control reviews at least once every three years (f) SUMMARY Governmental accounting and reporting is changing and expanding at... “Government Auditing Standards.” GAO, Washington, DC, 1994 Governmental Accounting Standards Board, “Codification of Governmental Accounting and Financial Reporting Standards.” GASB, Stamford, CT, 1995 Government Finance Officers Association, “Governmental Accounting, Auditing and Financial Reporting.” GFOA, Chicago, IL, 1994 (Study guide available) APPENDIX 32.1: PRONOUNCEMENTS ON STATE AND LOCAL GOVERNMENT... Investments (including Repurchase Agreements), and Reverse Repurchase Agreements Applicability of FASB Statement No 87, “Employers’ Accounting for Pensions,” to State and Local Governmental Employers Disclosure of Pension Information by Public Employee Retirement Systems and State and Local Governmental Employers Accounting and Financial Reporting for Special Assessments Advance Refundings Resulting . NCGA Statements 1, 4, and 5, NCGA Interpretation 8, and GASB Statement Nos. 10, 16, and 18 Technical Bulletin Purpose and Scope of GASB Technical None No. 84 -1 Bulletins and Procedures for Issuance Technical. Statements and (8) Management’s Discussion and Analysis—for State and Local Governments: Omnibus Statement No. 38 Certain Financial Statement Note (9) Disclosures Discussion and Analysis— for State and. Statements and (6) Management’s Discussion and Analysis—for State and Local Governments Statement No. 35 Basic Financial Statements– and (7) Management’s Discussion and Analysis—for Public Colleges and