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KEEPING STATE FISCAL OFFICIALS INFORMED VOLUME 34, NUMBER 9 | SEPTEMBER 2014

ONE HUNDRED YEARS OF SERVICE BY WILLIAM G. HOLLAND, PRESIDENT OF NASACT, 2014-15

I’m honored to be president of the National remained valuable for the simple reason that, from its Association of State Auditors, Comptrollers and beginning, it has risen above the present to envision Treasurers during its centenary celebration. In its the future. early years, NASACT’s mission was to “promote As members of NASACT, we could, at this juncture, economy, effi ciency and uniformity in public look back and be satisfi ed with the contributions auditing and handling public funds.” A century we have made to governmental accountability and later our mission continues to be to assist state transparency. I think it’s appropriate to indulge that leaders to “enhance and promote eff ective and inclination for a few congratulatory handshakes. effi cient management of governmental resources.” Th en, let’s return our focus to the years ahead. Th ere Unchanged is the underlying commitment to is still much to be done. responsible public service. Involvement in NASACT will enhance your Imagine, in an era when transcontinental phone professional knowledge on salient topics like pension service was just getting started and automobile reform, federal/state oversight, cybercrime, evolving travel between and took information technologies and data sharing, debt weeks, NASACT had the vision to embrace fi nancial management, tax policies and professional standards. management professionals—treasurers, comptrollers Mark your calendars for the 2015 NASACT Annual and auditors—from all across the . And Conference which will be held in the City of the Big together these government leaders from various Shoulders—Chicago, . In the meantime, I disciplines began to craft uniform systems and strongly encourage each of you to join a committee, professional standards out of the chaos that then attend a training conference, or watch a webinar. existed. Few organizations maintain their vitality Come join us and be a part of the fi rst twelve months for a century. I am convinced that NASACT has of the next 100 years!

WILLIAM G. HOLLAND, AUDITOR GENERAL OF ILLINOIS William G. Holland was elected president of NASACT in August at the 2014 annual conference. Holland is the longest serving auditor general in Illinois history, having been in the position since 1992. He is a past president of the National State Auditors Association, and his office has won several NSAA Excellence in Accountability Awards. Holland has received several recognitions, including the Motorola Foundation Excellence in Public Service Award, given annually to a non-elected Illinois public official who has improved the lives of citizens through leadership, teamwork and innovation, and NSAA’s William R. Snodgrass Distinguished Leadership Award, given for his distinctive leadership and contributions in state government auditing.

NASACT News | September 2014 1 ASSOCIATION NOTES

VERMONT LAUNCHES INVESTOR WEBSITE MODELED ON NASACT’S VOLUNTARY INTERIM FINANCIAL REPORTING BEST PRACTICES State Treasurer and NASACT Executive concerns. Th e group’s recommendations were issued Committee member has launched a new in a report titled “Voluntary Interim Financial interim fi nancial disclosure web page to provide easy Reporting: Best Practices for Governments.” Th e access to information needed to evaluate a bond paper can be downloaded at www.nasact.org/reports. investment. In a press release announcing the new Aft er the issuance of the best practices report, website Treasurer Pearce states that “this voluntary NASACT formed an Interim Disclosures enhancement in state disclosure eff orts will benefi t Implementation Group the entire investment community and increase last fall. Th e group’s transparency.” mission is to pilot Th e new Vermont fi nancial reporting web page implementation of the organizes ten key areas of fi nancial data in one best practices so they location to allow investors easier access to the might more easily be information. Th e web page follows best practice implemented by the guidelines issued by NASACT last August. other states. It can be found at www.vermonttreasurer.gov/cash- Vermont is the investments/fi nancial-reporting/disclaimer. fi rst state to have In January 2013, NASACT formed the Continuing implemented all ten Disclosures Task Force to determine what steps of the recommended state governments could take to address disclosure best practices.

NASACT’S BEST PRACTICES ON NASACT’S INTERIM DISCLOSURES VOLUNTARY INTERIM FINANCIAL IMPLEMENTATION WORK GROUP REPORTING NASACT’s implementation group is co-chaired by NASACT’s August 2013 report recommended that when Alan Skelton, state accounting officer (GA), and possible states provide interim financial reporting Colin MacNaught, assistant treasurer for debt information in ten key areas: management (MA). States represented in the implementation group include: 1. Tax revenue Arizona Georgia 2. Budget updates 3. Cash flow Missouri Nevada 4. Debt outstanding North Carolina 5. Economic forecasts 6. Pensions and other post-employment benefits 7. Interest rate swaps and bank liquidity To join the implementation pilot effort, contact 8. Investment Cornelia Chebinou, Washington director, 9. Debt management policies at [email protected]. 10. Filings with the Electronic Municipal Market Members may access the group’s roster and Access system webpage at www.nasact.org/member_content.

NASACT News | September 2014 2 NEWS FROM WASHINGTON

FINAL BANK LIQUIDITY RULES FAIL TO INCLUDE MUNIS AS HIGH-QUALITY LIQUID ASSETS

Th is month, the Federal Reserve, the Federal securities may be used as pledged collateral. Under Deposit Insurance Corporation and the Offi ce of the the liquid coverage ratio rule, banks may choose Comptroller of the Currency voted to approve fi nal to replace pledged municipal securities with other liquidity standards for banks, an action resulting securities. Accounts of municipal entities are usually from the 2008 fi nancial crisis. Th e standards were not highly profi table for fi nancial institutions. developed to ensure that large fi nancial institutions Movement by banks away from utilizing municipal have enough liquid assets to fund their operations securities as a pledged security will reduce profi t for at least 30 days. Th e standards require that banks margins even more, thus incentivizing banks to not meeting the total asset threshold of $250 billion must hold public depository accounts. State and local maintain a designated level of high-quality liquid governments need access to the cash management assets. and treasury tools off ered by fi nancial institutions. When the rule was proposed back in November Th ese services are either not available or limited in 2003, NASACT and several other state and local scope from community banks who are not subject to associations wrote a letter urging federal regulators the liquidity coverage rule. Th e result is more costly to classify municipal securities as high-quality liquid banking services, lower yields, or lack of needed assets (HQLA). Many believe the failure to qualify cash management products to operate an effi cient municipal bonds as HQLA will reduce the appeal treasury system. of municipal securities for banks to underwrite Although the fi nal rule failed to classify municipal them, which in turn could increase borrowing costs securities as high-quality liquid assets, the regulators for state and local governments to fi nance needed in approving the fi nal rule have indicated that infrastructure projects. they would consider rule modifi cations that would Th ere is also concern that the standards could classify certain municipal securities as high-quality provide a disincentive for banks to hold public liquid assets. deposits. In most states, banks must pledge collateral NASACT will keep members informed about any against any public deposits they hold. Municipal forthcoming amendments.

GAO RELEASES 2014 GREEN BOOK ON INTERNAL CONTROLS

Th e U.S. Government Accountability Offi ce issued Commission (COSO) Internal Control—Integrated Standards for Internal Control in the Federal Framework, and adapted them for the government Government: 2014 Revision, GAO-14-704G, also environment. known as the Green Book, on Wednesday, September Th e new Green Book, which will supersede Standards 10. Internal control helps an entity run its operations for Internal Control in the Federal Government effi ciently and eff ectively, report reliable information (GAO/AIMD-00-21.3.1, November 1999), will be about its operations, and comply with applicable eff ective beginning fi scal year 2016 and will apply laws and regulations. Th ese standards provide the to the Federal Managers’ Financial Integrity Act overall framework for designing, implementing, and reports covering that year. Federal management, at operating an eff ective internal control system. its discretion, may elect early adoption of the 2014 Th is new edition of the Green Book has greater detail Green Book. State, local and quasi-governmental and depth. While retaining the fi ve components entities, as well as not-for-profi t organizations, may of internal control found in past editions, which adopt the new Green Book standards as a framework apply to all organizational levels and to all categories for an internal control system. of objectives, the 2014 version also presents 17 Th e 2014 Green Book is available on GAO’s website new principles that enumerate management at www.gao.gov/greenbook. Questions or requests for responsibilities in implementing and overseeing additional information may be directed to the GAO an eff ective internal control system. GAO has Green Book project team at [email protected] or adopted the key concepts from the 2013 Committee (202) 512-9535. of Sponsoring Organizations of the Treadway

NASACT News | September 2014 3 NEWS FROM WASHINGTON

OMB ISSUES 2nd SET OF Q&As ON GRANT REFORM

Th e U.S. Offi ce of Management and Budget has issued non-federal entities seeking to understand the its second set of Q&A in an ongoing series intended policy changes. to further clarify the fi nal guidance on Uniform OMB intends to issue additional Q&As and will Administrative Requirements, Cost Principles, and host a webinar this fall addressing some of the most Audit Requirements for Federal Awards located frequent inquiries. For a copy of the Q&As and other in 2 CFR 200. Th e Q&As are intended to provide information related to the uniform guidance, visit additional context and background for federal and www.cfo.gov/COFAR.

MSRB SEEKS INPUT ON PRIORITIES

Th e Municipal Securities Rulemaking Board is Th ose commenting may wish to consider the seeking input from interested parties on priorities the following questions: Board will use to guide its strategic direction over the 1. Where can the MSRB have the most meaningful next several years. impact on the municipal market and/or Current MSRB activities that support its priorities industry? include (1) regulating municipal securities dealers 2. What are the top issues, risks or challenges in and municipal advisors, (2) operating market the municipal market and how might the MSRB transparency systems, and (3) providing education, proactively address them? outreach and market leadership. Th e MSRB’s strategic goals include: 3. How should the MSRB’s resources be allocated among the core components of its mission, • Municipal Advisor Regulation: Implement which includes protecting municipal securities regulatory requirements and standards for all investors, protecting issuers and municipal professionals providing municipal advisory entities, promoting market fairness and effi ciency services. and providing market transparency? • Municipal Entity Protection: Expand MSRB’s 4. To what extent should the Electronic Municipal protection eff orts beyond municipal issuers to all Market Access website add additional features municipal entities. and functionality and how can the MSRB best • Market Effi ciency: Clarify, create and tailor rules determine which developments contribute the and guidance that support a fair and effi cient most to a fair and effi cient municipal market? marketplace. Th e comment deadline is October 23, 2014. More • Price Transparency: Improve price transparency information can be found at www.msrb.org/~/media/ for investors and issuers. Files/Regulatory-Notices/RFCs/2014-16.ashx?n=1.

TREASURY RELEASES 2nd ANNUAL OFFSET REPORT

Last month, the U.S. Department of the Treasury’s unemployment insurance compensation fraud. Bureau of the Fiscal Service (Fiscal Service) released Under reciprocal agreement, the states recovered its annual report to the states on delinquent debt $30.9 million in overdue debts for the federal service undertaken by the Treasury Off set Program government. (TOP). TOP is a centralized off set program to collect Th e report, issued annually, provides state-by-state delinquent debts owed to federal agencies and states. information on delinquent debt recovery over the In FY 2013 the fi scal service collected more than past fi ve years. $3.0 billion in delinquent debts on behalf of state States interested in viewing the report or getting governments. Th e largest recoveries include more information on TOP should go to http://fi scal. delinquent debt in child support and nutrition treasury.gov/fsservices/gov/debtColl/dms/top/stPgm/ assistance, state income tax obligations, and debt_top_state_programs.htm.

NASACT News | September 2014 4 NEWS FROM AROUND THE NATION

2014 NASACT ELECTION PREVIEW BY NEAL HUTCHKO, POLICY ANALYST

Below is a list of upcoming elections for NASACT Departing incumbents are shown in italics. Current member offi ces this November. incumbents are shown in green. Th ere are 10 auditors, 13 comptrollers, 24 treasurers, Questions about 2014 elections for NASACT and one comptroller/treasurer up for election during member offi ces may be directed to Neal Hutcko, this cycle, for a total of 48 seats, representing nearly policy analyst, in NASACT’s Washington offi ce. one-third of NASACT’s membership. Neal can be reached at [email protected] or (202) 624-5451.

STATE AUDITOR COMPTROLLER TREASURER Alabama Young Boozer, III (R) is unopposed Arizona Doug Ducey is running for Jeff DeWit (R), Software Business Owner vs. Gerard Davis, Democratic write-in candidate Charlie Daniels is retiring Charles Robinson is not eligible to run in 2014. Regina Stewart Hampton (D), ’s Office Employee Karen Garcia (D), State Democratic Party Treasurer vs. vs. (R), State Representative (R), Saline County Circuit Clerk and Former State GOP Chair California John Chiang is term-limited Bill Lockyer is retiring (D), Former Deputy State Budget Director vs. John Chiang (D), State Controller vs. (R), Mayor of Fresno, CA Greg Conlon (R), Former Public Utilities Commissioner Colorado Walker Stapleton (R) vs. Betsy Markey (D), Former Congresswoman (D) vs. Denise Nappier (D) vs. Sharon McLaughlin (R), GOP Activist and Accountant Tim Hurbst (R), Trumbull Town First Selectman Delaware Tom Wagner (R) vs. Chipman Flowers, Jr., withdrew from race Brenda Mayrack (D), Former State Sean Barney (D), Former Gubernatorial Aide vs. Democratic Party Executive Director Ken Simpler (R), Former Hedge Fund Manager & Attorney Florida Jeff Atwater (R) vs. William Rankin (D), Former Director of Asset Management for the State Treasury of Ohio Idaho (R) is unopposed Ron Crane (R) vs. Deborah Silver (D), Twin Falls County Democratic Chair Illinois Judy Baar Topinka (R) vs. lost primary for governor (D), Lt. Governor (R), State House Minority Leader vs. (D), State Senator (R) vs. has resigned Mike Claytor (D), Retired Accountant and Attorney (R), TrustINdiana Local Government Investment Pool Director vs. Mike Boland (D), Former Illinois State Representative Iowa Mary Mosiman (R) vs. Mike Fitzgerald (D) vs. Jon Neiderbach (D), Former Des Moines Sam Clovis (R), Radio Talk Show Host School Board President Kansas Ron Estes (R) vs. Carmen Alldritt (D), Former State Vehicles Director

NASACT News | September 2014 5 NEWS FROM AROUND THE NATION Continued from previous page

STATE AUDITOR COMPTROLLER TREASURER Maryland (D) vs. William Campbell (R), Former Assistant U.S. Secretary of Veterans Affairs Massachusetts Suzanne Bump (D) vs. Steve Grossman is running for governor Patricia Saint Aubin (R), Businesswoman (D), Former Brookline Selectman vs. and GOP Activist Mike Heffernan (R), Technology Executive & Former Investment Banker Minnesota Rebecca Otto (DFL, the Minnesota Democratic-Farmer-Labor party) vs. Randy Gilbert (R), Sarbanes-Oxley Compliance Auditor for Assurance Consulting 3, LLC Missouri Tom Schweich (R) is unopposed Nebraska Mike Foley is running for lt. governor Don Stenberg (R) vs. (R), State Senator vs. Michael O’Hara (D), Former Omaha Public Power District Amanda McGill (D), State Senator Director Nevada Kim Wallin is term-limited Kate Marshall is term-limited Andrew Martin (D), State Assemblyman vs. Kim Wallin (D), State Controller vs. Ron Knecht (R), Former State Board of Regents Member Dan Schwartz (R), State GOP Finance Chair New Mexico is running for attorney general James Lewis is term-limited (D), State Senator vs. (D), Property Tax Consultant Robert Aragon (R), Former State Rick Lopez (R), Governmental Administrator Representative New York Tom DiNapoli (D) vs. Bob Antonacci (R), Onondaga County Comptroller Ohio Dave Yost (R) vs. Josh Mandel (R) vs. John Patrick Carney (D), State Connie Pillich (D), State Representative Representative Oklahoma Gary Jones is unopposed Ken Miller is unopposed is running for governor (D), Investment Fund Manager vs. Ernie Almonte (Independent), Former Auditor General (R) vs. Curtis Loftus (R) is unopposed Kyle Herbert (D), Accountant Steve Barnett (R) is unopposed (R) is unopposed

Texas is retiring (R), State Senator vs. Mike Collier (D), Corporate Financial Executive Vermont (D) is unopposed Beth Pearce (D) vs. Murray Ngoima (Liberty Union), Artist, Teacher Wisconsin Kurt Schuller is retiring Matt Adamczyk (R), State Legislative Aide vs. Dave Sartori (D), Retired State Parole Agent Cynthia Cloud (R) is unopposed (R) is unopposed

NASACT News | September 2014 6 ASSOCIATION NOTES

WHAT’S NEW AT www.nasact.org? NASC FORMS NEW INFO SHARING GROUP Th e following new items have been posted on ON ELECTRONIC PAYMENTS NASACT’s website: Th e group, formally called Electronic Payments: • NASACT’s 2014 Comprehensive Annual Payment Methodology, Vendor Setup and Security Financial Report at www.nasact.org/cafr. Issues, will be chaired by Lynne Bajema, state comptroller of Oklahoma. Th e fi rst call will be on • Th e following technical inquiry from state Tuesday, October 21 at 3:00 p.m. Eastern time. comptrollers (members only content): Anyone wishing to participate who has not already - Government Employee Salary Data indicated interest should email Kim O’Ryan at [email protected] or call her at (859) 276-1147. • NASACT’s response letters to the GASB on: 1. Accounting and Financial Reporting for NSAA SEEKS INPUT ON AICPA EDs Postemployment Benefi ts Other Th an Pensions Th rough its Audit Standards and Reporting Committee, NSAA will be commenting on the 2. Financial Reporting for Postemployment following exposure draft s: Benefi t Plans Other Th an Pension Plans • Omnibus Proposal of Revised Interpretations 3. Accounting and Financial Reporting for Pensions and Financial Reporting for Pension Response due to NSAA: Friday, October 17 Plans Th at Are Not Administered through • An Audit of Internal Control Over Financial Trusts Th at Meet Specifi ed Criteria, and Reporting that is Integrated with an Audit of Amendments to Certain Provisions of GASB Financial Statements Statements 67 and 68 Response due to NSAA: Wednesday, November 12 • Reporting on an Examination of Controls at a NSAA SEEKS PEER REVIEW TEAM MEMBERS Service Organization Relevant to User Entities’ NSAA has 23 peer reviews scheduled for 2015. Th ose Internal Control Over Financial Reporting: from state audit offi ces interested in becoming a peer Clarifi cation and Recodifi cation review team member should contact Kathleen Young, Response due to NSAA: Wednesday, November 12 peer review coordinator, at [email protected]. Th e exposure draft s can be found at www.aicpa.org. Comments or questions may be directed to Sherri Rowland ([email protected]).

UPCOMING INFORMATION SHARING CALLS

OCTOBER NOVEMBER NSAA HR Info Sharing – Oct 15 NASC Payroll – Nov 12 (this is a date change – was Oct 29) NASACT Committee on Accounting, NASACT Pension Work Group – Oct 16 Reporting and Auditing (CARA) – Nov 18 NASC Electronic Payments – Oct 21 NASC Travel & P-Card – Nov 19 NSAA Pension Audit Issues – Oct 30

GET INVOLVED! For information on participating in any of these calls, contact NASACT’s headquarters office at (859) 276-1147.

NASACT News | September 2014 7 ASSOCIATION NOTES

NASC BUSINESS MEETING HIGHLIGHTS BY KIM O’RYAN, CPA, NASC ASSOCIATION DIRECTOR

Th e National Association of State Comptrollers held Accounting Standards Board will be hosting hearings a business meeting on August 11 in Santa Fe, New on the OPEB exposure draft s in September. GASB Mexico in conjunction with the 2014 NASACT will release preliminary views documents on leases Annual Conference. President David Von Moll, state and fi duciary responsibility and an ED on tax comptroller of Virginia, welcomed everyone and led abatements that will address disclosure of specifi c tax the meeting. abatements to specifi c people/organizations.

COMMITTEE REPORTS Program Committee Advisory Committee for State Comptrollers: John Reidhead, director of Utah’s Division of Finance Technical Activities and Functions and committee chair, reported that the committee will have its fi rst conference call in October to Julie Feldman, state accountant for Montana and begin identifying topics and speakers. He told the member of the committee, reported that the 2014 group to submit any suggestions for speakers or edition of the Comptrollers’ Book has been compiled topics. Mr. McKelvogue mentioned inviting federal and will soon be made available to members. representatives to be on the program due to the Responses were received from 44 states. (Th e book location of the conference. has subsequently been posted online and distributed to members.) Middle Management Conference Committee Committee on the Financial Plan Lynne Bajema, Oklahoma’s state comptroller and committee chair, reported that the 2015 conference Anna Maria Kiehl, Pennsylvania’s state comptroller will be held in Raleigh, North Carolina, on April and committee chair, reported that the 2014 14-16. Th e conference hotel is the Sheraton Raleigh NASC projected results of operations show a Hotel and the room rate is $119/night (plus tax). positive projection. Much of this is due to the high Th e committee will have its fi rst conference call in attendance and sponsorship for the NASC Annual December to begin planning the conference. Conference, 53 offi ces paying the technical services fee this year, and two states that contracted for Information Sharing Groups benchmarking services. Reports were also provided on activities of the Committee on Outreach following NASC groups: Calvin McKelvogue, Iowa’s chief operating offi cer and • State Government Payroll (report provided committee member, reported that NASC has two new by Lisa Pusich, Alaska’s deputy director and members: Linda Combs, state controller of North committee member). Carolina, and Bill Slack, deputy chief fi nancial offi cer • Travel & P-Card (report provided by Tom White, of the District of Columbia. state comptroller of Alabama and committee Site Committee member). Brandon Woolf, state controller of Idaho and NEXT MEETING OR MORE INFORMATION committee chair, reported that NASC’s president, Th e next scheduled NASC business meeting will Mr. Von Moll, will host the 2015 conference in occur in conjunction with the 2015 NASC Annual Richmond, Virginia on March 11-13. John Reidhead Conference in Richmond, Virginia. will be the host in March 2016 in Salt Lake City, Utah. Questions about the content of this article may be Committee on Accounting and Financial Reporting directed to Kim O’Ryan at [email protected] or Alan Skelton, Georgia’s state accounting offi cer and (859) 276-1147. committee chair, reported that the Governmental

Mark Your Calendar for NASC 2015! March 11-13, 2015 — Richmond, Virginia

NASACT News | September 2014 8 ASSOCIATION NOTES

NSAA BUSINESS MEETING HIGHLIGHTS BY SHERRI ROWLAND, CPA, NSAA ASSOCIATION DIRECTOR

Th e National State Auditors Association held a its quarterly information sharing calls, featuring business meeting on August 11 in Santa Fe, New a diff erent topic on each call. Th e most recent call Mexico, in conjunction with the 2014 NASACT was held on July 30 and featured the topics of (1) Annual Conference. NSAA President Roger Norman, managing IT staff in state audit offi ces and (2) legislative auditor of Arkansas, led the meeting. background checks. Th e next call is scheduled for Wednesday, October 15. COMMITTEE REPORTS Peer Review Audit Standards and Reporting Deborah Loveless, director of Tennessee’s Division Sherri Rowland, association director, reported on of State Audit and vice-chair, reported that revisions behalf of Randy Roberts, senior technical director in to Appendix B (fi nancial reporting checklist) were the Arizona Offi ce of the Auditor General and chair fi nalized in late June and posted to the website. At the of the committee. Th e committee has been working committee’s recent meeting in June, task forces were with the comptrollers’ Committee on Accounting established to look at (1) peer review training and (2) and Financial Reporting to respond to several developing reporting examples for the Peer Review exposure draft s from the Governmental Accounting Manual. Th e task forces will be meeting soon to begin Standards Board. exploring these issues. About a year ago, the committee created a work Performance Audit group to focus on audit issues surrounding the implementation of GASB’s pension standards. Daryl Purpera, legislative auditor in Louisiana and Gerry Boaz, technical manager with the Tennessee chair, reported that the committee continues to host Comptroller of the Treasury and chair of the information sharing calls on performance audit work group, said that the group continues to topics. Th e next call is scheduled for September 18 meet regularly. Th e last call, held on July 10, had and will focus on identifi cation of high-risk areas for participation from 24 states. Th e leadership of the performance audits. work group recently participated in a call with Single Audit representatives from the American Institute of Dianne Ray, state auditor of Colorado and chair, Certifi ed Public Accountants and a CPA fi rm to reported that the committee continues to provide discuss their procedures for auditing pension plans input to the U.S. Offi ce of Management and Budget, in the private sector and the extent of census data as it strives to revise/streamline the compliance testing. (Th e guests also participated in a call with the requirement areas for the 2015 compliance entire work group on August 18.) supplement. To date, the committee has provided Auditor Training feedback on the following compliance requirements: Paula Kinnard, assistant legislative auditor in (1) subrecipient monitoring and (2) allowable costs/ Arkansas and vice-chair, said that the 2015 Middle cost principles and activities allowed or unallowed. Management Conference will be held in Raleigh, 2015 Annual Conference North Carolina, in April, at the Sheraton Raleigh President Norman said that the 2015 conference will be Hotel. Th e room rate is $119 per night plus applicable held June 9-12, in Little Rock, Arkansas, at the Marriott taxes. Hotel. Th e room rate is $86 per night plus taxes. E-Government NEXT MEETING OR MORE INFORMATION Ms. Rowland provided the report on behalf of Karen Helderman, audit director in Virginia and chair of Th e next NSAA business meeting is scheduled for the committee. Th e 2014 NSAA IT Workshop and June 11, 2015, in conjunction with NSAA’s annual Conference will be held September 30-October 3, conference in Little Rock, Arkansas. in Grand Rapids, Michigan, at the Amway Grand Questions about the content of this article may be Hotel. Th e room rate for the conference is $99 per directed to Sherri Rowland at [email protected] night plus taxes. or (859) 276-1147. Human Resources John Geragosian, state auditor in Connecticut and vice-chair, reported that the committee continues

NASACT News | September 2014 9 ASSOCIATION NOTES / NEWS FROM AROUND THE NATION

ALAN SKELTON TESTIFIES BEFORE GASB ON BEHALF OF NASACT On August 27, 2014, NASACT Statements 67 and 68 NASACT’s response letters provided responses to the Th e three comment letters can be contain requests for clarifi cation following exposure draft s from viewed in full at www.nasact.org/ of the language used in the EDs the Governmental Accounting gasb. and requests for defi nitions to Standards Board: be provided in the Glossary. On September 12, during the • Accounting and Financial He concluded by stating that GASB public hearings, Alan NASACT’s responses agree with Reporting for Postemployment Skelton, Georgia’s state accounting Benefi ts Other Th an Pensions the underlying principles of the offi cer, provided testimony on standards. • Financial Reporting for behalf of the association on these Postemployment Benefi t Plans three documents. Mr. Skelton is MORE INFORMATION Other Th an Pension Plans co-chair of NASACT’s Committee Questions about NASACT’s • Accounting and Financial on Accounting, Reporting and response letters to recent GASB Reporting for Pensions Auditing and chair of the National due process documents may and Financial Reporting Association of State Comptroller’s be directed to Kim O’Ryan for Pension Plans Th at Are Committee on Accounting and ([email protected]) or Sherri Not Administered through Financial Reporting. Rowland ([email protected]); Trusts Th at Meet Specifi ed Mr. Skelton testifi ed that both may also be reached at (859) Criteria, and Amendments to NASACT generally agrees with 276-1147. Certain Provisions of GASB the requirements of the EDs.

GERRY BOAZ IS NAMED TO AUDITING STANDARDS BOARD Gerry Boaz, technical manager, and non-public entities. Th e He is a member of many NASACT Division of State Audit, Tennessee committee is composed of 19 committees as well as committees Comptroller of the Treasury, members representing various of the National State Auditors has been appointed to the industries and sectors, including Association. He represents American Institute of Certifi ed public accountants and private, NASACT by observing and Public Accountants’ Auditing educational and governmental writing an account of meetings Standards Board. Th e three-year entities. of the Governmental Accounting appointment is eff ective January Boaz has been with the Tennessee Standards Board. 1, 2015. Comptroller of the Treasury He has a B.A. in accounting with a Th e ASB establishes auditing since 1995. He is a certifi ed German minor from Murray State and attestation standards public accountant and a certifi ed University. for audits of governments government fi nancial manager.

RANDY ROBERTS RECEIVES AICPA CAREER CONTRIBUTION AWARD On August 11, the American of their respective local state or and Local Government Expert Institute of Certifi ed Public federal employer organization. Panel, and contributed to the Accountants announced Randy Roberts is the senior technical state and local government audit Roberts as the recipient of director for the Arizona Offi ce guide and government auditing the 2014 Outstanding CPA in of the Auditor General. He has standards and A-133 audit guide. Government Career Contribution been extremely active in the audit He was awarded the National State Award. community during his career, Auditors Association’s William Th e Outstanding CPA in having served, and continuing R. Snodgrass Distinguished Government Career Contribution to serve in many capacities, a Leadership Award and NASACT’s Award recognizes the impact of number of organizations. Special Recognition Award. Th e signifi cant contributions of the Roberts served on the Auditing Arizona State Society of CPAs CPA to the effi ciency, eff ectiveness Standards Board during the clarity honored him with the Lifetime or innovative service delivery standards project and on the State Member Award.

NASACT News | September 2014 10 NEWS FROM AROUND THE NATION

NAST ELECTS 2014 EXECUTIVE COMMITTEE, LILLARD TO SERVE AS PRESIDENT On September 9, the National Miller, state treasurer of • Western Region Vice Association of State Treasurers Oklahoma President: Mark Gordon, elected its 2015 Executive • Eastern Region Vice state treasurer of Wyoming Committee. Th ose elected were: President: Nancy K. Kopp, Th e newly elected offi cers will • President: David H. state begin their terms on January 1. At Lillard, Jr., state treasurer of • Southern Region Vice that time, Treasurer Lillard will Tennessee President: Lynn Fitch, state replace the 2014 NAST president, • Senior Vice President: James treasurer of Mississippi Richard David H. Lillard, Jr., NAST’s L. McIntire, state treasurer of Ellis, who will continue to serve new president-elect • Midwestern Region Vice Washington on the Executive Committee as President: Don Stenberg, immediate past president. • Secretary Treasurer: Ken state treasurer of Nebraska

GANERIWALA AND McINTIRE RECEIVE AWARDS AT NAST ANNUAL CONFERENCE On September 8, Virginia State McIntire was elected in 2008. In NAST and former California state Treasurer and 2011, he prepared Washington’s treasurer. Th e award recognizes Washington State Treasurer James fi rst-ever debt aff ordability study an active treasurer’s outstanding McIntire were both presented to provide a comprehensive tool service to the association, the with awards by the National for managing the state’s debt. profession and his or her state. Association of State Treasurers. Prior to his election, he was a Ganeriwala was appointed state Th e awards were presented at business economist for Navigant treasurer of Virginia in 2009 and the NAST Annual Conference in Consulting, Inc. He began his reappointed in July 2010. Prior to Mackinac Island, Michigan. public service career working serving as treasurer, she served Treasurer McIntire was recognized in the U.S. Senate for Hubert as deputy secretary of fi nance. with the Harlan Boyles-Edward Humphrey. He is a fi ve-term state Her public service career also T. Alter Distinguished Service representative and founded and includes leadership roles with the Award. He was chosen by directed a fi scal policy center. Virginia Department of Medical members of the NAST Executive Treasurer Ganeriwala received the Assistance Services and the Committee to receive the award, Jesse M. Unruh Award. She was Virginia Department of Planning which is presented to dedicated chosen by members of the NAST and Budget. public servants whose outstanding Executive Committee to receive career in government has provided the award, which is named in a respected voice for NAST. honor of a founding member of

INDIANA GOV. PENCE APPOINTS DANIEL HUGE TO REPLACE RICHARD MOURDOCK On Friday, August 29, Richard and I am confi dent he will ensure to 2010 and has held other upper Mourdock resigned his position continuity of operations in the management positions in both the as Indiana’s state treasurer four Treasurer’s offi ce,” said Gov. public and private sectors. Huge is months before the end of his Pence. Huge is a CPA with 30 a graduate of Purdue University. term. Indiana Gov. years of fi nancial, accounting Huge’s appointment was made to immediately appointed Daniel and audit experience. He is the ensure continuity of operations Huge to serve in an interim chief fi nancial offi cer and chief in the Treasurer’s Offi ce until capacity. In his resignation letter, operating offi cer of the Indiana Governor Pence is able to appoint Mourdock said he was leaving Finance Authority and has someone to serve through to pursue other professional served as CFO of the Capital December 31, 2014. interests. Improvement Board from 2010 “Daniel Huge brings a strong to 2013. He served as director of background in fi nancial services, the Indiana Bond Bank from 2001

NASACT News | September 2014 11 CALENDAR

2014

September 30 - October 3 | NSAA IT Workshop & Conference, Grand Rapids, MI

VOLUME 34, NUMBER 9 | SEPTEMBER 2014 November 6 | Webinar — High Impact Audits and Reports: NSAA’s 2014 Excellence in Accountability Award Winners, 2:00 - 3:50 p.m. Eastern Time

R. Kinney Poynter 2015 Executive Director Cornelia Chebinou March 10 | NASACT Executive Committee Meeting, Richmond, VA Washington Office Director March 11-13 | NASC Annual Conference, Richmond, VA

Glenda Johnson April 14-16 | NASACT Middle Management Conference, Raleigh, NC Communications Manager June 9-12 | NSAA Annual Conference, Little Rock, AR National Association of State August 23 | NASACT Executive Committee Meeting, Chicago, IL Auditors, Comptrollers and Treasurers August 22-26 | NASACT Annual Conference, Chicago, IL Headquarters Office 449 Lewis Hargett Circle, Suite 290 September 22-25 | NSAA IT Workshop & Conference, Hartford, CT Lexington, KY 40503-3590 P (859) 276-1147, F (859) 278-0507 Washington Office AFFORDABLE TRAINING OPTIONS 444 N. Capitol Street, NW, Suite 234 BY DONNA MALOY, CONFERENCE MANAGER Washington, DC 20001 P (202) 624-5451, F (202) 624-5473 TRAINING SEMINARS www.nasact.org NASACT’s Training Seminars Program will bring training to you. We have a wide range of qualifi ed presenters who cover topics such as interviewing techniques, Governmental Accounting Standards Board updates, internal controls, fraud and much more. If one of NASACT OFFICERS our standard training packages isn’t quite right for your needs, we are happy to customize William G. Holland training specifi cally for you. To fi nd out more information about NASACT’s Training President Seminars Program, contact Kathleen Young at [email protected]. Auditor General, Illinois WEBINARS Calvin McKelvogue First Vice President NASACT’s webinars are another avenue for high-quality, aff ordable training. NASACT Chief Operating Officer schedules on average four webinars per year. For one registration fee, an offi ce can host an State Accounting Enterprise, Iowa unlimited number of participants. Th is is an extremely cost-eff ective way to off er training and CPE to staff in your offi ce without requiring travel. If you have a topic that you Richard K. Ellis would like to see us cover in a webinar, please email it to Kinney Poynter at kpoynter@ Second Vice President nasact.org. State Treasurer, Utah Debra K. Davenport Secretary NOVEMBER 6 WEBINAR — HIGH IMPACT AUDITS AND REPORTS: NSAA’S 2014 Auditor General, Arizona EXCELLENCE IN ACCOUNTABILITY AWARD WINNERS D. Clark Partridge Each year the National State Auditors Association recognizes outstanding performance audit report(s), Treasurer forensic report(s), and special project(s) through its Excellence in Accountability Awards Program. State Comptroller, Arizona NASACT’s next webinar will feature an overview of the 2014 winning entries. States presenting include Colorado, Nevada, Washington and Ohio.

NASACT News is published monthly. Earn 2 credits of CPE! Group registrations cost $299 (unlimited attendance) and individuals can To submit articles, photos or ideas, participate for $50. contact Glenda Johnson at [email protected] or (859) 276-1147. Get complete details at www.nasact.org/2014_nsaa_winner_webinar!

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