DEPARTMENT OF FINANCIAL SERVICES
Meeting Name: Chart of Accounts and LOGER - Auditor General
Date: September 6, 2013
Time: 9:00 am to 10:30 am
Location: G74 Claude Pepper Building
Agenda
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Welcome and Introductions
AFR Process
LOGER Changes
Chart of Accounts Project Activities
Attendees:
DFS – Christina Smith, Brendan Jones, Otis Smith, Asheema Vemuri
Office of the Auditor General:
Ted Sauerbeck – Deputy Auditor General
Marilyn Rosetti – Audit Manager
Greg Centers – Audit Manager
Jim Stultz – Audit Manager
Meeting Minutes:
Discussion:
Christina provided an overview of the UCOA and the update on activities. Christina
stated that DFS also met with JLAC and DEO to discuss Local Government audit
process and impact issues. She discussed the UCOA Cost Estimate report and the
proposed legislation and that DFS will also include a modification of the AFR
process and the LOGER enhancement in the proposal.
Christina stated that DFS intends to preserve the AFR process and just modify it to
accommodate the UCOA requirements.
DEPARTMENT OF FINANCIAL SERVICES
AFR process – Christina asked the AG members how they use the AFRs and how
often they use LOGER. AG members stated that they verify if the entities meet the
audit thresholds and that they look at only totals and not details. When they perform
audits, they primarily see if DFS is accounting for the information correctly or not.
AG stated that they use the AFR data because it is more comparable and they use it to
review financial trends for certain data elements during their audits. Ted Sauerbeck
stated that if entities don’t have audits, then the law requires them to publish the
Balance Sheet and that is why the AG reviews the AFR form for the fund balance and
other Balance Sheet items.
Reporting Frequency - Marilyn stated that the April 1 reporting date may cause
frustration and may be too cumbersome for entities. She asked that DFS revisit the
deadline. Christina stated that for monthly revenues and expenditures DFS is
proposing that data be reported at the level that entities are reporting currently in their
systems. There was a choice of monthly or quarterly and monthly data appeared to be
better for transparency purposes. Christina also stated that based on thresholds, DFS
will require annual data to be reconciled at year end however, will not reconcile
monthly data to the annual reports.
Christina stated that DFS will be briefing House and Senate and if the thresholds are
below a minimum, entities will not be required to report monthly however, will still b
required to report annually. Marilyn stated that some entities have to report in
alternate years so how will they know if they should be reporting. DFS will research
and propose on this issue.
Christina stated that currently Local Government reports expenses by Court type.
She stated
That since no one is reviewing the detailed expenditures, DFS will include in the
proposal to include expenditures by expense type. Christina stated that the validation
for Balance Sheet totals will only be for integrity of thresholds.
Christina requested that AG review the language in the legislation in October along
with the level of detail and the frequency of reporting.
DSOs – Christina asked about DSO requirements. She asked who appoints the Board
members. AG members stated that Universities or schools do not create the DSOs
but are designated by the universities or schools. Ted Sauerbeck stated that this will
be an issue for reporting at yearend because they have different year ends.
Additionally, he stated that there are over 350 to 400 DSOs and it is a fantasy to think
DEPARTMENT OF FINANCIAL SERVICES
they will report monthly. He asked if there is any benefit in reporting DSO
information monthly at all. Christina said that they plan to discuss with the House
and Senate. AG stated that they have no use for the information and will not collect.
Ted further stated that citizens don’t care about totals at all.
AG had several recommendations on the Draft document and provided a list. DFS
will review the recommendations carefully and incorporate into the UCOA
documents. AG members recommended the use of a floating date for 3-4 months
based on the Fiscal Year end dates of entities.
Christina explained the proposed process for annual reporting. Entities will provide
the year end information on April 1 and make adjustments until they submit the final
audited reports in June for certification. Audits will be verified in LOGER. The
issue will be that DFS has limited resources and members with expertise to validate
the financial statements.
Christina stated that the draft proposal will be available in November for AG to
review. She provided a timeline of the upcoming activities
 September 2013 – Collect Cost Estimates
 October 2013 – meet with Legislature on the draft process
 November 2013 – request AG to review
Meeting was adjourned.