Meeting Minutes
Department of Financial Services
Charts of Account Project
Meeting Name: Chart of Accounts Project
Meeting Group: Chart of Accounts Advisory Workgroup - Minutes
Date: October 15, 2012
Time: 9:30 am
Location: Room B105, Fletcher Building, Tallahassee, Florida
Requestor:
Attendees:
Jeff Smith - Clerk of Circuit Court, Indian River County
Joe Garofalo – Finance Director, Sarasota County Tax Collector
Michael Williams – Controller, Florida State University
Richard Becker – VP for Administration and Business Services, Palm Beach State College
Rob Garner – GCSC-US, representing the Florida League of Cities
Merrill Wimberley – Chief Financial Officer, Leon District Schools
Justin Young – Department of Financial Services
Elwood McElhaney – Department of Financial Services
Discussion:
This was the inaugural meeting of the Chart of Accounts Advisory Workgroup. After introductions,
Elwood McElhaney gave a brief history of the Chart of Accounts law and the progress-to-date. The
Department of Financial Services requested representatives from the various governmental reporting
groups to assist in developing a chart of accounts that can be used by all agencies.
A draft Project Charter was distributed and discussed. It provided objectives, deliverables,
responsibilities, guidance and assumptions for the Workgroup. Members were asked to provide any
additions/deletions/ changes that they felt were appropriate before the Charter is moved from draft to
final status. A copy of the draft Project Charter is attached to these minutes.
A draft project schedule was distributed and discussed. It called for seven more meetings of the
Workgroup through January 15, 2014, and provided statutory deadlines for submission of deliverables.
Those deadlines and workshop dates on November 12, 2012 and January 11, 2013 are the only firm
dates on the schedule. All other dates are subject to discussion and change by the group. The group
decided to forego the meetings scheduled for November 15, 2012 and December 15, 2012 in lieu of a
two day meeting early in January 2013. Elwood McElhaney will schedule the meeting.
Elwood McElhaney handed out a side-by-side compilation of the charts of accounts that are currently in
use by the various governmental reporting groups. After a general discuss of the accounts in use and
how the listing was compiled, the Group discussed and developed their recommendation for assets,
liabilities, and equity accounts. The Group recommendations for Revenues and Expenditures will be
completed at the January 2013 meeting.
There was substantial discussion about issues relating to the Project. They included:
1. The reporting schedule - Although a reporting schedule is not addressed by section 215.89, F.
S., a schedule must be recommended in order to develop a estimate of the implementation
costs that is required by the law. The Workgroup recommends reporting Revenues and
Expenditures on a quarterly basis, and Real accounts annually. Real accounts are generally only
valued as of the balance sheet date, so reporting them at any other schedule would only result
in outdated or inaccurate information. This recommendation will provide information at the
lowest possible cost.
2.
There was discussion on several reporting issues, including:
a. Timeliness – Agencies must be allowed sufficient time after the reporting date to review and
cleanse the data. Although Elwood McElhaney recommended loading trial balance data
upon monthly closings, those in attendance almost unanimously wanted to review the data
before it is published to the public. There was general agreement that reporting agencies
should be allowed 30-45 days after the close of a reporting period to submit data.
b. Basis of Accounting – There were questions as to whether the information to be reported
should be on the cash or accrual basis of accounting. Most agencies run cash or budget
basis throughout the year, and convert to accrual balances at the fiscal year end. The
recommendation would be to report the balances in the same manner.
c. Fiscal Year Ends – The State, Universities, and Colleges have fiscal years that end on June 30.
Most cities and counties end the year on September 30. The County Clerks have some state
money with an FYE of June 30 as well as county funds with an FYE of September 30. Some
Special Districts have other fiscal year end dates. This will result in incompatible reporting.
Any reporting tool will have to include an ‘As Of’ date on any reported balances.
d. Level of Reporting – Amounts will be reported at the Fund level rather than the entity-wide
level. We will also want to report at some organizational levels below the agency head.
Two levels below the agency head has been suggested, but no final recommendation has
been determined. There was substantial discussion as to how to identify this level of
reporting and that it will not promote comparability across entities because there is no
organizational consistency between agencies. Also, most agencies do not record year end
accruals or reversals at the lower levels of the organization. It was suggested that all
members bring an Organization Chart to the next meeting to assist in this exercise.
3. Christina Smith, Director of Accounting and Auditing, visited the group for a few minutes to
welcome and thank the members. She entertained questions and provided guidance. She
emphasized that the CFO is charged by law with developing this Chart of Accounts. She hopes
this group can help us come up with a workable model. If not, the CFO will have to develop one
by himself.