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GASB STATEMENT NO. 69 — GOVERNMENT COMBINATIONS AND DISPOSALS OF GOVERNMENT <br />OPERATIONS <br />This statement provides accounting and financial reporting guidance, including disclosure requirements, <br />for government combinations and disposals of government operations. Government combinations include <br />mergers, acquisitions, and transfers of operations. Included within the scope of this statement are <br />combinations of governmental entities, or combinations of governmental entities with nongovernmental <br />entities (such as a nonprofit entity), as long as the new or continuing organization is a government. This <br />statement does not apply to combinations in which a government acquires an organization that continues <br />to exist as a separate entity, or acquires an equity interest in an organization that remains legally separate <br />from the acquiring government. A disposal of operations occurs when a government either transfers or <br />sells specific operations. The provisions of this statement are effective for financial statements for periods <br />beginning after December 15, 2013. Earlier application is encouraged. <br />CHANGES TO REQUIREMENTS FOR FEDERAL GRANTS <br />In December 2013, the U.S. Office of Management and Budget (OMB) issued "Uniform Administrative <br />Requirements, Cost Principles, and Audit Requirements for Federal Audits," which supersedes all or parts <br />of eight OMB circulars; consolidating federal cost principles, administrative principles, and audit <br />requirements in one document. The "Super Circular" includes a number of significant changes to the <br />federal Single Audit process, including an increase in dollar threshold for requiring a Single Audit, <br />changes to the thresholds and process used for determining major programs, a reduction in the percentage <br />of expenditures required to be covered by a Single Audit, revised criteria for determining low -risk <br />auditees, and an increase in the threshold for reporting questioned costs. The draft version of this <br />guidance also included proposed reductions in the number of compliance requirements to be tested in a <br />Single Audit, but final guidance on those changes will not be available until an updated compliance <br />supplement is issued in 2014. <br />