GASB #34 – Annual Financial ReportWhat you need to know

Presented by:Bonnie L. Kabonick, ChiefLECS Comptroller’s OfficeSchool Finance Divisionbkabonick@state.pa.us

Mary Kay Beer, ChiefLECS Comptroller’s OfficeSchool Accounting Sectionmbeer@state.pa.us

FYI With the implementation of Phase II, there will

be over 400 LEAs using the new reporting model Early implementation is encouraged Schools required to implement in Phases I & II

will not be given access to the “traditional” AFR reporting package

Schools that do not complete the package in compliance with the new reporting model will have their files returned and will be considered not filed

Required Reporting MD & A – separate reporting method Basic Financial Statements (BFS) –

prepared using Access database Schedules - prepared using Access

database Revenue and Expenditures – prepared

using Access database Note Disclosures to the Financial

Statements – separate reporting method Package will be available on the web

A Look at the Statements Two Government Wide Statements

Statement of Net Assets (Government Wide) Statement of Activities (Government Wide)

Report financial data using the full Accrual basis of Accounting

Old and New Statements Fund Financial Statements

Similar to traditional statementsReported using the modified accrual basis

Presented using the Major and Non Major fund criteria

Reconciliation Statements (2)Provide a link from Fund Financial Statements to Government Wide Statements

Old and New (continued) Budget and Actual Statement –

additional column that reports Final budget

Statement of Net Assets Proprietary Funds – reported using the

full accrual basis of accounting and the Major and Non Major criteria

Internal Service fund presented separately

Old and New (continued) Statement of Revenues, Expenses and

Changes in Fund Balance – reported using the Major and Non Major criteria

Statement of Cash Flows – reported using the Major and Non Major fund criteria

More Statements Statement of Cash Flows –

Presented using the Major and Non Major criteria – accrual basisInternal Service fund reported as a separate column

Statement of Net Assets – Fiduciary Funds

Statement of Changes in Net Assets – Fiduciary Funds

Important Information LEAs must report non current assets

and liabilities on the government wide statements. A validation has been built into the database to check for accurate reporting.

The Reconciliation Statements must be completed. A validation will check that this Statement is completed.

What else should I know? You may still use the DFL to load

your revenues and expenditures Revenues and Expenditures will still

roll up to the appropriate Statements

Refer to the Major Fund Determination worksheet for the formula to identify Major funds

Where can I get help? The Comptroller’s website:

www.pde.state.pa.us/school_acct The GASB website: www.gasb.org The PASBO website: www.pasbo.org Various reference books including the

GAAFR, and the Manual of Accounting and Financial Reporting for PA Public Schools (available on the Comptroller’s web site).