Management's Discussion & Analysis - New Mexico Association of ...

simpleluncheonΔιαχείριση

10 Νοε 2013 (πριν από 3 χρόνια και 7 μήνες)

54 εμφανίσεις

MANAGEMENT’S DISCUSSION
& ANALYSIS


NMASBO Fall Conference 2012

Taos, New Mexico


Presented by Leslie Smith, Retired Business Manager

GASB 34


Financial Reporting
Standards


In
June 1999, the Governmental Accounting
Standards Board
(GASB) established new financial
reporting standards
that
for state and
local
governments to
report their financial
results.


Public Schools are required to follow these
standards.

Overview of the Financial Statements


This report consists of three parts


Management’s Discussion & Analysis


Basic Financial Statements


Government
-
wide financial statements which provide
long and short term information about the school’s
overall financial status


Fund financial statements that focus on individual parts
of the school district operations in more detail


Required Supplementary Information & Notes

What Is the M D & A?


The MD&A is a
nontechnical
presentation of information
contained the district’s audited Financial Statements.
This portion is unaudited.


The discussion


Offers
insights on the
district’s overall financial standing


Explains the reasons for significant change in
financial
position relative to the last reporting
period, and


Identifies
current factors with the potential to
influence
the district’s
future financial
position


May contain other relevant information regarding the
district


Consider These Topics for Discussion


Mission and Organizational Structure


Discussion and Analysis of the Financial Statements


Financial Results


Budgetary Integrity


Current Demands


Risks, Uncertainties, Events, Conditions, and Trends


Future Effects of Current Demands, Risks, Uncertainties, Events,
Conditions and Trends


Understanding Financial Reporting


Discussion and Analysis of Systems, Controls and Legal Compliance


Discussion and Analysis of Performance




Model MD & A


Template in this presentation
is from a school district in
South Dakota


Overview of Financial Statements


Financial Analysis


Explanation of Significant Differences


Governmental & Business
-
Type Activities


Governmental Activities


Financial Analysis of the School District’s Funds


General Fund Budgetary Highlights


Capital Asset Administration


Long
-
term Debt


Economic Factors

Preparation Process



The preparation of MD&A requires significant
coordination among
district personnel to


Analyze,
identify and disclose the
reasons

for changes
in the financial statements,


Analyze
relevant global and local economic issues, and
discuss future financial plans with
district
management.


Use charts
, graphs, and tables to enhance the
understandability of the information
presented.

Government
-
wide Financial Statements


The
government
-
wide statements
include
a statement of net
assets and a
statement of
activities.


These statements
focus on
the school district
as a whole and
report all assets (
including infrastructure
), liabilities, revenues,
and expenses of
the school district.


These
statements follow the flow of
economic resources
method
using
full
accrual basis
accounting
.





Accrual accounting means that transactions are
recorded when they occur, rather than when cash is
disbursed or received.

Statement of Net Assets


The statement of net assets
includes the district’s
assets
and liabilities at a given point in time. Net
assets are
simply the difference between assets and
liabilities.


All financial and capital resources are reported.
Capital assets
that are being or have been
depreciated are
reported at historical cost (or
estimated historical
cost, at transition), less
accumulated depreciation.

Statement of Activities


The
statement of activities
reports
school district operating
revenues
and expenses. Expenses are reported
by function
and program,
such as transportation, administration,
regular & special education
and
any revenue
(except taxes)
attributable to that function
or program
is reported with the
function or program
and net
expense or revenue presented.


A
review of this
statement will
indicate which programs
contribute to
and which
draw from general revenues
.



Annual
depreciation expense
is generally reported with
each
program or
function.

Fund Financial Statements


Fund
financial statements provide more detailed
information about the school district’s most significant
funds


not the district as a whole.


Funds are used only in governmental accounting to keep
track of certain sources of funding and spending for a
particular purpose. Measurement
focus, and basis
of
accounting
of funds did not
change with GASB 34.


Fund accounting continues
alongside the
government
-
wide statements
.


Reconciliation
of the fund statements
with the
government
-
wide statements
is required
.

Fund Financial Statements


The

school district’s basic
activities are reported in
the “
governmental fund
” statements. These
fund
statements
are
prepared using
the current financial
resources measurement
focus and
a modified, as
opposed to
full, accrual
basis of accounting
.



Governmental funds
do not report
capital assets
,
and
therefore do
not have depreciation expense.
Further, they do
not show
long
-
term debt.

Analysis of Fund Financial Statements


An analysis of balances and transactions of individual
funds

-

The analysis should address the
reasons

for significant
changes in fund balances or fund net assets and whether
restriction, commitments, or other limitations significantly affect
the availability of fund resources for future use.


An analysis of significant variations between original and
final budget amounts and between final budget amounts
and actual budget results for the general fund (or its
equivalent
)
-

The analysis should include any currently known
reasons for those variations that are expected to have a
significant effect on future services or liquidity.


Comprehensive Variance Analysis



In order to facilitate the identification of significant
changes and determining the
reasons

for such changes,
the comprehensive variance analysis must include the
following information:


Statement
of Net Assets:


Current year vs. prior year balances


dollar and percent
changes


Balances for the current year and two preceding years


comparison of balances as a percentage of total assets (for
assets) and as a percentage of total net assets (for liabilities
and net assets) for each year.


Comprehensive Variance Analysis



Statement of Revenues, Expenses, and Changes in Net
Assets
:


Current year vs. prior year balances


dollar and percent
changes


Current year vs. prior year balances


dollar and percent
changes for expenses by natural classification


General Fund
Budgetary Highlights


Any significant budget adjustments made during the
year


Change in Unit Value


Change in T & E Index


Increase or Decrease in Student Membership


Reduction in force


Hiring freeze

Other Topics


Capital Asset Administration


Long Term Debt


Economic Factors and Next Year’s Budgets


Contacting the District’s Financial Management



Questions??


Thank you for your attendance!


Contact Information


Leslie Smith
dba


gFund

Solutions


575 420
-
6269