Meeting Agenda Department of Financial Services Chart of Accounts Project
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1 Meeting Agenda Department of Financial Services Chart of Accounts Project Meeting Name: DFS Chart of Accounts Project Meeting Group: Central Florida Chapter of Florida Government Finance Officers Association Date: August 17, 2012 Time: 1 pm Location: Orlando, Florida Requestor: Agenda: I. Introductions II. Overview of Section , Florida Statutes III. Review of Activities to Date IV. Review of First Draft V. Unresolved Issues VI. Next Steps VII. Questions & Answers VIII. Contact Information Minutes: Attendees: There were 44 attendees, which included 23 county employees, 16 city employees, and 5 others (CPA firms and consulting companies). Discussion: The Department of Financial Services (DFS) was asked to give a presentation on the Chart of Accounts project to the Central Florida Chapter of the Florida Government Finance Officers Association (FGFOA). Elwood McElhaney represented DFS at the meeting. Mr. McElhaney reviewed the May 8, 2012, presentation that was given to the FGFOA in Orlando. The presentation covered a review of the law, the progress to-date, and our future plans. The Draft Chart of Accounts was presented, which was followed by considerable discussion of how it was developed and how it relates to the current reporting structure that is used by the Bureau of Local Government. Those in attendance appear to have their existing accounting records set up to report using the Bureau of Local Government chart of accounts, and recommended that it be adopted as a statewide standard. There wasn t much feedback when Mr. McElhaney suggested that it be mapped into a higher level chart of accounts. The attendees were concerned about the proposal to sub-classify travel costs into in-state, out of
2 state, and foreign travel. There was also some disagreement with the policy of including employee mileage reimbursements in the travel classification. Mr. McElhaney discussed a plan to solicit representatives from the various user groups to work to refine the Draft Chart of Accounts and to develop estimates of the implementation costs. A recommendation was made that DFS expand the solicitation to include members from each of the county constitutional officers, since attendees from those offices were not confident that the county clerks would adequately represent their interests.
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4 MEETING AGENDA Introductions Review of Section , Florida Statutes Summary of Activities to Date Review of First DRAFT Unresolved Issues Next Steps Questions & Answers Contact Information
5 SECTION 1. Section , Florida Statutes, is created to read: 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.
6 (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.
7 (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, (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.
8 Section 2. The Legislature finds that this act fulfills an important state interest. Section 3. This act shall take effect July 1, Approved by the Governor May 26, 2011 Filed in Office Secretary of State May 26, 2011
9 o Meetings with: District School Board CFOs College Business Officers University Comptrollers Tallahassee Chapter of the AGA Nature Coast Chapter of GFOA Legislative Staff o Reviewed CAFRs and audit reports of covered agencies. o Project web site
10 o Review and Discussion of Preliminary Draft of Chart of Accounts Handout
11 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
12 Next Steps Meet with Legislative Staff Appoint Workgroup Workshops in the Fall Resolve as many issues as possible Expose Chart of Accounts
13 Questions and Answers
14 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
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