NASACT News, December 2015
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KEEPING STATE FISCAL OFFICIALS INFORMED VOLUME 35, NUMBER 12 | DECEMBER 2015 NASACT 2015 A YEAR IN REVIEW NASACT has focused on a number of major is substantially the same as fair value. Th e criteria initiatives in 2015. Each of these topics has been would only relate to fi nancial reporting. covered in past newsletters, business and committee In June, GASB issued an exposure draft , Accounting meetings, and email updates this year. and Financial Reporting for Certain External AMENDMENTS TO RULE 2a-7 Investment Pools, to revise the guidance on LGIPs. Th e ED only allowed a change in accounting policy to NASACT and the National Association of State amortized cost at the time of implementation when a Treasurers created a work group last fall to examine fi nal statement is issued. the the U.S. Securities and Exchange Commission’s amendments to Rule 2a-7 impacting money market NASACT replied to the ED at the end of August, mutual funds (MMFs). Among other things, the generally agreeing with the provisions of the ED amendments will require institutional prime MMFs but urging the Board to reconsider and remove the to adopt a fl oating net asset value (NAV) instead restriction on the ability for LGIPs to make justifi able of the traditional stable NAV. Th e work group has changes between acceptable accounting principles in primarily focused on the impact the amendments the future. A fi nal pronouncement is expected at the will have on local government investment pools end of December. (LGIPs), which in many cases are operated by state PENSION STANDARDS AND AUDIT GUIDANCE governments. NASACT has continued to host work groups Th e work group requested that the Governmental focusing on the implementation of GASB’s pension Accounting Standards Board (1) add this issue to its standards, Statements No. 67 and No. 68. technical agenda and (2) consider options that would allow LGIPs to continue using amortized cost (stable Th e Pension Standards Implementation Work Group NAV). GASB added the issue to its technical agenda has held regular calls since October 2012 to focus on in December 2014. a number of issues related to implementation. Th e group held its last call on December 10 and decided Th e work group also responded to a GASB survey not to hold additional calls unless needed. intended to explore an exception to fair value reporting for external investment pools when Th e Pension Audit Issues Work Group, a amortized cost is substantially the same as fair subcommittee of the state auditors, has worked value. Th e results of the survey were used by GASB to address audit-specifi c issues related to staff to develop criteria that would minimize the implementation. Th e group held its last call on risk that amortized cost deviates from fair value, November 12. Future call dates are to be determined. such that pools only report amortized cost when it Continued, next page NASACT MEMBERS: PROVIDE YOUR INPUT! Watch for these three upcoming member surveys: 1. Membership Satisfaction Survey: Will be distributed in mid-January. 2. NASACT Annual Conference Topics Survey: Will be distributed in mid-January. 3. Washington Issues Survey: Will be distributed in mid-February. NASACT News | December 2015 1 ASSOCIATION NOTES 2015 A YEAR IN REVIEW continued from previous page AFFORDABLE CARE ACT INFORMATION REPORTING past presidents (21 past presidents attended the ISSUES conference), and the unveiling of the inaugural Th e Aff ordable Care Act’s employer mandate went class of the NASACT Hall of Fame. into eff ect on January 1, 2015, for employers with Th e Hall of Fame was developed to recognize an 100 or more full-time employees and goes into eff ect elite group of individuals who have made major and on January 1, 2016, for those with between 50 and enduring impacts on state government fi nancial 99 full-time employees. management. Th e four recipients in the inaugural Employers, including state and local governments, Hall of Fame class were: with more than 50 full-time employees, are required • Louis L. Goldstein, former state comptroller of to provide aff ordable health insurance to any Maryland employee who works 30 or more hours per week (or 130 hours per month). While a safe harbor for • William R. Snodgrass, former comptroller of certain penalties exists for states who off er coverage the treasury in Tennessee to at least 95 percent of their eligible employees, • Frank L. Greathouse, former director of state penalties of $2,000 or $3,000 per full-time worker audit and assistant to the comptroller in may be imposed depending on the circumstances Tennessee (transitional relief in the year 2015 provides that coverage is 70 percent instead of 95 percent of full- • Relmond P. Van Daniker, former executive time employees). director of NASACT Specifi cally, under Section 6056, large employers ADMINISTRATIVE / PROCESS CHANGES (those with 100 or more employees) will be required In January 2015, NASACT entered into an agreement to provide information to employees and the Internal to provide conference support services to the Revenue Service concerning health insurance off ered National Association of State Treasurers. NASACT by the employer. also began provided accounting services to NAST in Although no reporting is required until 2016, February 2015. NASACT and NAST recently agreed employers should already have a plan in place to extend these services through June 30, 2018. to assure that the appropriate recordkeeping is Th e state auditors are working through a task force of being done to comply with the new reporting its Peer Review Committee to automate NSAA’s Peer requirements. Review Program. Th is is a signifi cant undertaking; NASACT has held a series of information sharing however, automating the forms and checklists will calls this year, led by Massachusetts, on the ACA greatly improve effi ciency of the process. Th e target and has also partnered with several private sector date for completion is June 2016. organizations that have expertise in this area in NASACT launched a new conference registration providing educational webinars on the issue. system in January 2015. Th is system will be upgraded Th e National Association of State Comptrollers also again in January 2016. conducted a conference call with representatives ONGOING ISSUES from the IRS in May to discuss issues surrounding information reporting required by the ACA. NASACT continues to be actively engaged in several ongoing projects, including: ACA resources, including links to the IRS’s page on ACA provisions and employer responsibilites, • Implementation of the Digital Accountability as well as forms and instructions, can be found on and Transparency Act. NASACT’s home page at www.nasact.org. • Implementation of the new Uniform Grant 100TH ANNIVERSARY Guidelines. Th e association celebrated its 100th anniversary at • Tax exemption for municipal bonds. the 2015 NASACT Annual Conference in August in MORE INFORMATION Chicago, Illinois. For more information about NASACT’s activities Several special activities were planned as part in 2015, view past issues of NASACT News at www. of the Centennial Celebration, including the nasact.org or call (859) 276-1147 or (202) 624-5451. release of a commemorative book, a parade of NASACT News | December 2015 2 ASSOCIATION NOTES NEW MEMBERS IN 2015 STATE TREASURERS AR — Dennis Milligan (replacing Charles Robinson) STATE AUDITORS AZ — Jeff DeWit (replacing Doug Ducey) DC — Kathleen Patterson (replacing Yolanda Branch) CA — John Chiang (replacing Bill Lockyer) FL — Sherrill Norman (replacing David Martin) DE — Ken Simpler (replacing Chip Flowers) MO — Nicole Galloway (replacing Thomas Schweich) HI — Wesley Machida (replacing Kalbert Young) MS — James A. Barber (replacing Max Arinder) IL — Mike Frerichs (replacing Dan Rutherford) NE — Charlie Janssen (replacing Mike Foley) IN — Kelly Mitchell (replacing Dan Huge) NH — Michael Kane (replacing Jeffrey Pattison) MA — Deb Goldberg (replacing Steve Grossman) NJ — Phillip Degnan (replacing Marc Larkins) ME — Terry Hayes (replacing Neria Douglass) NM — Tim Keller (replacing Hector Balderas) MI — Nick Khouri (replacing Kevin Clinton) NV — Rocky Cooper (interim - replacing Paul Townsend) MN* — Myron Frans (replacing James Schowalter) SC — K. Earle Powell (replacing Perry Simpson) NJ — Robert Romano (replacing Andrew Sidamon-Eriston) SC — George L. Kennedy (replacing Rich Gilbert, interim) NM — Tim Eichenberg (replacing James B. Lewis) NV — Dan Schwartz (replacing Kate Marshall) STATE COMPTROLLERS NY — Eric Mostert (replacing Aida Brewer) AR — Andrea Lea (replacing Charlie Daniels) PA — Timothy Reese (replacing Rob McCord) AR — Larry Walther (replacing Richard Weiss) PR — Juan Zarangosa (replacing Melba Acosta Febo) CA — Betty Yee (replacing John Chiang) RI — Seth Magaziner (replacing Gina Raimondo) GU — Anthony C. Blaz (replacing Benita Manglona) TX* — Glen Hegar (replacing Susan Combs) HI — Douglas Murdock (replacing Dean Seki) UT — David Damschen (interim - replacing Richard Ellis) IL — Leslie Munger (replacing Judy Baar Topinka) WI — Matt Adamczyk (replacing Kurt Schuller) LA — John McLean (replacing Afranie Adomako) VI — Valdimir Collins (replacing Angel Dawson) MA — Thomas G. Shack (replacing Martin J. Benison) MN* — Myron Frans (replacing James Schowalter) CHANGES COMING IN 2016 MT — Cody Pearce (replacing Julie Feldman) As a result of recent elections and impending retirements, several member NE — Jerry Broz (replacing Hari Kadavath) changes are coming in 2016. — NH Gerard Murphy (replacing Karen