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Commissioner Philbeck - Finance - To Provide the Finance Officer the Authority to Implement GASB 84 within the FY20/21 Budget, Including the Authority to make all Necessary Budgetary Appropriations
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STAFF CONTACT
Tiffany Murray - Finance Department - 704-866-3032
BUDGET IMPACT
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Increase Budget to Appropriate Special Revenue and Related Expenditures. No additional County funds.
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BUDGET ORDINANCE IMPACT
This new GASB standards requires the County to establish three special revenue funds for tracking and reporting of 1) Fines and Forfeitures/Late List; 2) DSS Client Accounts; and 3) Deeds of Trust. The creation of these Special Revenue Funds will require the activity currently tracked in a non-Budgeted Agency fund to be budgeted in the current fiscal year and going forward. Budget amendments will need to be made to appropriate the previously not budgeted revenues and expenditures, resulting in an increase in the total adopted budget for the special revenue funds.
In addition, the standards require the establishment of two Custodial Funds for tracking and reporting of 1) Jail Inmates Commissary and 2) Municipal Tax Collections. No budgetary impact.
BACKGROUND
GASB Statement 84 Fiduciary Activities, establishes standards of accounting and financial reporting for fiduciary activities. This Statement applies to the financial statements of all state and local governments. An activity meeting the fiduciary criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the fiduciary criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. This Statement describes four fiduciary funds that should be reported, if applicable: 1) Pension (and other employee benefit) trust funds; 2) Investment trust funds; 3) Private-purpose trust funds; and 4) Custodial funds. Custodial funds generally should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria. The requirements of this Statement are effective for reporting periods beginning after December 15, 2018. Implementation was delayed due to Covid-19, but NC governments with June 30th year-ends will need to implement the guidance during the fiscal year ending June 30, 2021.
POLICY IMPACT
Approval of this Board Action gives the Finance Officer temporary authority to establish the necessary funds and appropriate revenue and expenditure budget amendments, including fund balance entries, to implement GASB 84 in order to bring the County in compliance with the new standard. The new funds budgetary entries will be reported to the Board of Commissioners. This temporary authority is authorized from July 1, 2020 to June 30, 2021.
ATTACHMENTS
Memo from the LGC