| Dear Center Members: |
This GAQC Alert provides the following information for our members:
- A reminder for next week's Governmental Audit Quality Center (GAQC) Web event on internal control considerations in a single audit. See the sidebar to the right;
- How to access newly archived no-CPE versions of the GAQC Web event series on the fundamentals of performing a single audit;
- Recent Governmental Accounting Standards Board (GASB) Preliminary Views (PV) documents on the financial reporting model and recognition concepts and how to comment; and
- Resources to help with the implementation of GASB Statement No. 84, Fiduciary Activities, which auditors should be considering now.
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GAQC 2018 Annual Webcast
As part of complying with the GAQC membership requirements, your firm's designated audit quality partner or state audit organization's designated audit quality leader need to have viewed the required 2018 GAQC Annual Update Webcast. If you have not yet viewed the Webcast, there are still several options available that you should take advantage of as soon as possible. Remaining CPE rebroadcast options follow (both events run from 1:00 PM – 3:00 PM (Eastern Time):
- Wednesday, December 19, 2018
- Thursday, January 10, 2019
Access registration information. When you open the registration page, the December 20th event registration links will appear. If you are interested in the January 10th rebroadcast, click on the arrow to the right of the December dates and scroll right.
If you are not interested in obtaining CPE, you can always view a no-CPE archive of the Webcast at any time.
Archived Single Audit Fundamentals Events
The GAQC has updated and refreshed its Single Audit Fundamentals Web event series which provides basic training for staff that are new to performing single audits or those that just want a refresher. This series was held live in November 2018 and the archived events are now available on the GAQC Web site. We also plan to hold several CPE rebroadcasts of this series in the upcoming year which will be communicated via a GAQC Alert. In the meantime, if you have staff that need basic single audit training and CPE is not a consideration for them, you can access the no-CPE archives of each event by using the links below.
Part 1: What is a Single Audit? A Basic Background and Overview
Part 2: The Mysteries of Major Program Determination
Part 3: Understanding and Testing Compliance Requirements and Internal Control over Compliance
Part 4: Overview of Sampling and Single Audit Reporting Requirements.
GASB Preliminary Views
State and local governments (SLGs) will ultimately be impacted by the current GASB project that is re-looking at the governmental financial reporting model. Members that audit SLGs are encouraged to consider and comment on the GASB's PV documents that include proposed improvements to key components of the financial reporting model, as well as new concepts intended to guide the Board in developing standards on recognition in financial statements. Comments on the proposals are due February 15, 2019, and instructions for commenting are included in the PV documents.
Some of the proposed changes include:
- A short-term financial resources measurement focus for governmental funds that recognizes short-term transactions and other events when incurred and long-term transactions and other events when due;
- A format for governmental fund financial statements that distinguishes between current and long-term resource flows;
- Clarified explanations of operating and nonoperating revenues and expenses; and
- A new schedule of government-wide expenses by natural classification as supplementary information in comprehensive annual financial reports.
The following provides access information for the PV documents and a related GASB educational Webcast:
GASB Fiduciary Activities
The time is now for SLG preparers and their auditors to be contemplating the requirements in GASB Statement No. 84. This standard will have a far-reaching impact and may change the reporting entity of governments with student activity funds, pension or other postemployment benefit plans, existing agency funds, and more. While the notion of a fiduciary activity on the surface seems straightforward (i.e., holding another entity's money), application of the standard requires an early individual analysis of various activities to determine the proper reporting under GASB Statement No. 84. Auditee and auditor consideration now, in advance of the effective date (i.e., 12/31/2019 year-ends), will greatly help the transition. The following resources are provided to assist members as they begin to prepare for the audit implications of the implementation of this standard:
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Sincerely,
AICPA Governmental Audit Quality Center |
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| In This Alert |
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| Don't Miss Out! |
| The next GAQC Web event, Tackling Internal Control Over Compliance in a Single Audit, will be held on Thursday, December 13, 2018, from 1:00 PM – 3:00 PM (Eastern Time). Register now! This is a topic that continues to be challenging for auditors. |
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| Need Year-End CPE? |
| Check out the AICPA Store and browse by topic or CPE format to find courses of relevance to your practice, including governmental, not-for-profit, Yellow Book, and single audit topics. |
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| Additional Resources |
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| Stay Informed |
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