- NY Credits : 8.0
- TX Credits : 8.0
Governmental Special Purpose Reporting
GASB research indicates that while over 21,000 units of state and local government are using GAAP financial accounting and reporting standards, the remaining 10,000 units surveyed are not using GAAP. In addition, another 58,000 smaller units were not included in this survey and it is not clear how many of these governments follow GAAP. In 2012, the AICPA issued new clarified audit standards that revised the terminology for non-GAAP reporting from Other Comprehensive Basis of Accounting (OCBOA) to special purpose framework to update the guidance for auditors engaged to provide attest services for non-GAAP entities. This program provides an overview of the different special purpose framework reporting methods, as well the format and content of external financial reporting for governments issuing special purpose framework financial statements. It continues with a discussion of the governmental annual financial report as a communication tool and provides preparers with helpful guidance to effectively present the information they want to communicate to the different user groups with the report. The program closes by examining some of the guidance that is applicable for auditor responsibilities with respect to clients following special purpose framework accounting and reporting.
Upon successful completion of Governmental Special Purpose Reporting, the user should be able to:
recognize the authoritative guidance for defining a special purpose framework (SPF) methodology,
identify the differences among the major types of non-GAAP accounting methods,
recognize the characteristics of the cash basis of accounting,
identify the key elements of the modified cash basis of accounting,
identify the statement of net position on either the cash or modified cash basis,
identify what should be reported in the fund statements and explain the reconciliations to the government-wide statements,
identify how to report information that is presented in GAAP-basis required supplementary information,
identify specific communication goals for the external financial reporting process,
identify an SPF government's financial indicators and explain key ratios to legislators,
recognize how to evaluate the cost factors for programs and services to determine if cash basis financial statements provide reliable information, and
identify how audit reporting standards affect the auditor's report on SPF financial statements.