Meeting Agenda Department of Financial Services Chart of Accounts Project Meeting Name: DFS Chart of Accounts Project Meeting Group: Treasure Coast Chapter – Florida Government Finance Officers Association Date: October 12, 2012 Time: 1:15 pm Location: Port St. Lucie, Florida Requestor: Agenda: I. II. III. IV. V. VI. VII. VIII. Introductions Review of Section 215.89, Florida Statutes Summary of Activities-to-Date Review of Current DRAFT Chart of Accounts Unresolved Issues Next Steps Questions and Answers Contact Information Minutes: Attendees: There were 38 attendees, which included 20 county employees, 11 city employees, and 7 others (Not-for-Profits and Asset Management companies). Discussion: The Department of Financial Services (DFS) was invited to give a presentation on the Chart of Accounts project to the Treasure Coast Chapter of the Florida Government Finance Officers Association (FGFOA). Elwood McElhaney represented DFS at the meeting. The presentation covered a review of the law, the progress to-date, and our future plans. The Draft Chart of Accounts was presented, followed by discussion on how it was developed and how it relates to the current reporting structure that is used by the Local Government Section. Mr. McElhaney announced the formation and membership of the Statewide Chart of Accounts Advisory Workgroup, which will advise DFS in the development of the Chart of Accounts. Mr. Jeffrey Smith, Clerk of the Circuit Court of Indian River County, is a member of that Workgroup, and was in attendance. DFS hopes to have a draft Chart of Accounts completed by February 28, 2013, and to conduct meetings at strategic locations throughout the State to present it to the public and receive comments. The final draft will be released for public comments by July 1, 2013, and comments will be received through November 1, 2013. DFS hopes to identify and address most of the public concerns through the public meetings in the Spring. The final recommended Chart of Accounts and an estimate of the costs to implement it are due to the Governor and Legislature by January 15, 2014. Those in attendance were primarily from local governmental units, and appear to have their existing accounting records set up to report using the existing Local Government Section’s Chart of Accounts. They strongly recommended that it be adopted as a statewide standard. Mr. McElhaney reminded them that the School Boards, Colleges, Universities, and State agencies do not use that Chart of Accounts, so it would not necessarily work for those entities. DFS hopes to develop a Chart of Accounts that is compatible with the Local Government Chart of Accounts so that those using that Chart can readily map their data to the Statewide Chart of Accounts. There were suggestions to develop separate Charts of Accounts for each individual reporting group. Mr. McElhaney replied that this is allowable under the law, but the DFS will attempt to develop a single Statewide Chart of Accounts that all reporting groups can use. Separate Charts is allowable but not the preferred solution. The presentation ended at approximately 3:30 pm. MEETING AGENDA ◦ Introductions ◦ Review of Section 215.89, Florida Statutes ◦ Summary of Activities to Date ◦ Review of Current DRAFT ◦ Unresolved Issues ◦ Next Steps ◦ Questions & Answers ◦ Contact Information SECTION 1. Section 215.89, Florida Statutes, is created to read: 215.89 Charts of account.— (1) LEGISLATIVE INTENT.—It is the intent of the Legislature that a mechanism be provided for obtaining detailed, uniform reporting of government financial information to enable citizens to view compatible information on the use of public funds by governmental entities. The Legislature intends that uniform reporting requirements be developed specifically to promote accountability and transparency in the use of public funds. In order to accommodate the different financial management systems currently in use, separate charts of account may be used as long as the financial information is captured and reported consistently and is compatible with any reporting entity. (2) DEFINITIONS.—As used in this section, the term: (a) “Charts of account” means a compilation of uniform data codes that are to be used for reporting governmental assets, liabilities, equities, revenues, and expenditures to the Chief Financial Officer. Uniform data codes shall capture specific details of the assets, liabilities, equities, revenues, and expenditures that are of interest to the public. (b) “State agency” means an official, officer, commission, board, authority, council, committee, or department of the executive branch; a state attorney, public defender, criminal conflict and civil regional counsel, or capital collateral regional counsel; the Florida Clerks of Court Operations Corporation; the Justice Administrative Commission; the Florida Housing Finance Corporation; the Florida Public Service Commission; the State Board of Administration; the Supreme Court or a district court of appeal, circuit court, or county court; or the Judicial Qualifications Commission. (c) “Local government” means a municipality, county, water management district, special district, or any other entity created by a local government. (d) “Educational entity” means a school district or an entity created by a school district. (e) “Entity of higher education” means a state university, a state or Florida College System institution, or an entity created by a state university or state or Florida College System institution. (f) “State and local government financial information” means the assets, liabilities, equities, revenues, and expenditure information that is recorded in financial management systems of state agencies, local governments, educational entities, and entities of higher education. (3) REPORTING STRUCTURE.— (a) Beginning October 1, 2011, the Chief Financial Officer shall conduct workshops with state agencies, local governments, educational entities, and entities of higher education to gather information pertaining to uniform statewide reporting requirements to be used to develop charts of account by the Chief Financial Officer. A draft proposed charts of account shall be provided by July 1, 2013, to the state agencies, local governments, educational entities, and entities of higher education. (b) The Chief Financial Officer shall accept comments from state agencies, local governments, educational entities, entities of higher education, and other interested parties regarding the proposed charts of account until November 1, 2013. (c) By January 15, 2014, the Chief Financial Officer, after consultation with affected state agencies, local governments, educational entities, entities of higher education, and the Auditor General, shall submit to the Governor, the President of the Senate, and the Speaker of the House of Representatives a report recommending a uniform charts of account which requires specific enterprise-wide information related to revenues and expenditures of state agencies, local governments, educational entities, and entities of higher education. The report must include the estimated cost of adopting and implementing a uniform enterprise-wide charts of account. Section 2. The Legislature finds that this act fulfills an important state interest. Section 3. This act shall take effect July 1, 2011. Approved by the Governor May 26, 2011 Filed in Office Secretary of State May 26, 2011 o Meetings with: District School Board CFOs College Business Officers University Comptrollers Tallahassee Chapter of the AGA Numerous FGFOA local chapters Legislative Staff o o Reviewed CAFRs and audit reports of covered agencies. Project web site www.myfloridacfo.com/aadir o Chart of Accounts Advisory Group o University System – Michael Williams o Colleges – Richard Becker – Palm Beach State College o School Boards – Merrill Wimberley – Leon DSB o County Clerks – Jeffrey Smith – Clerk of Circuit Court – Indian River County o Sarasota Co. Tax Collector’s Office – Joe Garofalo o Cities – Rob Garner – Government Consulting Services Company o DFS Local Government – Justin Young o Draft of Chart of Accounts Development oJune 15, 2012 Draft based on CAFR reviews oNew September 15, 2012 Draft based on existing Local Government Chart of Accounts o Review and Discussion of latest Draft of Chart of Accounts o Unresolved Issues oLevel of Reporting o By Fund o By Organizational Level oTiming of Reporting oDefinition of ‘Other Entities’ oAll Accounts vs. Nominal Accounts Next Steps ◦ Workgroup meetings in the Fall ◦ Public workshops in Spring 2013 ◦ Resolve as many issues as possible ◦ Expose Chart of Accounts 7-1-2013 ◦ Develop Cost Estimates Questions and Answers Contact Information: Elwood McElhaney, CPA Application Design and Support Process Manager Division of Accounting and Auditing 304 Fletcher Building 200 East Gaines Street Tallahassee, Florida 32399-0353 850-413-5503 Elwood.McElhaney@myfloridacfo.com