Recent discussions at the Governmental Accounting Standards Advisory Council have highlighted the fact that 50 to 75% of local government entities are not using GASB Standards. If over half of these entities are using other comprehensive bases of accounting, are the GASB standards really "generally accepted?" The issuance of GASB Statement No. 34 turned up the volume on whether GAAP reporting standards apply to OCBOA governments, and auditors are also confused about their role in reporting on OCBOA financials. This program provides an overview of the different OCBOA methods, as well the format and content of external financial reporting for governments issuing OCBOA statements. The authors also discuss the governmental annual financial report as a communication tool and provide preparers with helpful guidance to effectively present the information they want to communicate to the different user groups with the report. The program closes by examining some of the guidance that is applicable for auditor responsibilities with respect to clients following OCBOA methods.

Chapter 1 examines the authoritative guidance for defining OCBOA methods, as well as the differences among OCBOA methods and the reasons why users rely on OCBOA systems and reporting.

Chapter 2 discusses the differences between the most common OCBOA methods, namely the cash basis, the modified cash basis, and regulatory accounting.

Chapter 3 examines the GASB Statement No. 34 model and the related reporting requirements for OCBOA financial statements.

Chapter 4 discusses required and other supplementary information, as well as economic conditions reporting for OCBOA financial statements.

Chapter 5 provides information on analyzing financial indicators, trends, and ratios of OCBOA financial statements.

Chapter 6 discusses the auditor's role in OCBOA financial reporting, and the appropriate modifications to the auditor's standard report on OCBOA financial statements.

• Be able to identify and explain the authoritative guidance for defining an other comprehensive basis of accounting (OCBOA) methodology

• Know the differences among the major types of non-GAAP accounting methods

• Be able to discuss why users rely on OCBOA systems and reporting

• Be familiar with users' views of OCBOA reporting and their priorities for governmental financial reporting

• Be able to describe the impact of recent audit standards for those governments using OCBOA policies

• Know how to prepare the Statement of Net Assets on either the cash or modified cash basis

• Be able to organize the Statement of Activities on either the cash or modified cash basis

• Be able to select the appropriate note disclosures to expand reporting of relevant issues

• Know how to integrate sufficient accounting measurements in the general ledger system to provide both the restricted use regulatory reports and the external reports for general distribution

• Identify specific communication goals for the external financial reporting process

• Select the economic condition tables that may enhance the external financial reports or supporting information for bond issuance

• Highlight critical issues from the annual report that should be integrated with budgetary planning

• Be able to analyze financial indicators and explain key ratios to legislators

• Know how to evaluate the cost factors for programs and services to determine if cash flow financial statements provide reliable information

• Be able to identify key trends that may affect a government's credit rating and ability to borrow at affordable interest rates

• Know how to integrate the annual financial report with the budget planning process

• Be able to identify how audit reporting standards affect the auditor's report on OCBOA financial statements

• Be familiar with the appropriate modifications to the auditor's standard report that apply to OCBOA clients

Lucinda V. Upton, CPA, CGFM, is a Program Analyst for Kentucky's Legislative Research Commission. In her 21-year career in state government auditing and accounting, she has held the positions of Assistant Director of Audits in Kentucky's Office of the Inspector General, Financial Manager in Kentucky's Medicaid Program, and others. In addition to her auditing and financial management responsibilities, she has provided training and technical assistance to state audit staff, local government officials, and CPAs who audit governmental entities. Ms. Upton has developed training in governmental auditing and accounting. She is the Education Coordinator for the Southeastern Region of the Association of Government Accountants (AGA) and is a past President of the Central Kentucky Chapter. She has authored courses for Bisk Education, Inc., Sheshunoff Publishing, AICPA Continuing Education Division, and the AGA. She has also been a discussion leader for national conferences and training sessions. (Author)

Frank Crawford is President of Crawford & Associates, PC. He received a BS in accounting from East Central University in Ada, Oklahoma and began his professional career with the international accounting firm KPMG Peat Marwick before joining his brother, in a firm dedicated solely to providing auditing, consulting, and accounting services to governmental entities. Their firm has performed over 750 financial statement audits and financial-related audits of governments, along with a variety of other services including: GASB Statement No. 34 implementation plans; fraud investigations; internal control analysis; accounting policy and procedure development; and quality assurance reviews and training. Mr. Crawford serves on a number of committees with the AICPA. (Speaker)