Agenda - Council - 08/23/1983 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I ". . . the State Auditor shall prescribe uniform financial accounting and reporting standards in conformity with national standards .... " in order to receive distribution under s~c~i~ns 477A.011 to 477A.03 counties and cities must conform to the standards set in subdivision 2 in making all financial reports required to be made to the State Auditor after June 30, 1984." The debate relevant to this legislation included proposals to use uniformly classified financial information in the Local Government Aid formu~la. These proposals were subsequently dropped. Issues discussed in Committee included the timeliness of data from the Office of State Auditor, the June 30 reporting date for cities, and the lack of comparability of many data .elements prepared in ~ccordance with GAAP. One proposal would have changed the fiscal year end of all local governments to that of the State, June 30th. STATE AUDITOR'S POSITION The Uniform Chart of Accounts provides an account structure and a "common language" for terms. This is provided by prescribing the funds and accounts which form the basis for the accounting system and uniformity used by Minnesota cities. The position of this office is that cities over 2,500 in population which have implemented the Uniform Chart of Accounts issued in December 1981 and which provide us with a Comprehensive Annual Financial Report prepared in accordance with GAAP, are in compliance with the 1983 legislation. Chapter 342, laws of 1983 will affect financial reports due June 30, 1985, and thereafter. Accordingly, a uniform system of accounting and financial reporting must be implemented no later than January 1, 1984. It should be made clear that this Office is primarily emphasizing uniformity of financial reporting. Adoption of the Chart of Accounts is strongly recommended for cities to fulfill their reporting requirements. Accounting systems other than the Chart of Accounts may be subject to the approval of the Office of the State Auditor. GAAP will be the basis for all financial reports required by the Office of State Auditor, as well as all policy decisions made by this Office. Additional detailed instructions or interpretations will be proposed only when GAAP is not sufficiently clear or does not identify specific detailed uniform treatment for particular accounting and reporting issues. 2