keeping stateNASACT fiscal officials informed news Volume 32, Number 11 November 2012 NASACT Responds to SEC Report on Municipal Securities Market Members Remain Opposed to Federal Intervention or SEC Authority Over State Fiscal Affairs his summer the U.S. Securities and Exchange Commission recommendations that it be given specifi c authority to establish Tissued a long-anticipated report looking at disclosure and the form and content of fi nancial statements and to designate a pricing practices in the municipal securities market. The report private sector body as the GAAP standard setter for municipal makes a series of legislative and regulatory recommendations issuer fi nancing: such actions represent a direct infringement to address concerns voiced by market participants during fi eld of states’ rights. Federal authority over the Governmental hearings, in comment letters, and in meetings and conference Accounting Standards Board would be a violation of federalism calls with the SEC. and NASACT would adamantly oppose any attempt by the The report contains legislative recommendations that are federal government or Congress to override or interfere with particulary concerning to NASACT’s members, as they would GASB’s independent standard setting. NASACT’s comments to give the SEC authority over municipal issuer disclosure, the SEC point out: including designating a state or local government’s accounting standards setter and controlling the form and content of an “Governments have an important responsibility to be issuer’s fi nancial statements. NASACT members do believe accountable to the taxpayers for the use of their resources. that voluntary initiatives can and do make improvements in Public accountability is a signifi cantly different objective the disclosure provided to municipal bond investors. However, than is found in the business environment, and the need members are strongly opposed to the SEC’s involvement in for accounting standards that refl ect the unique nature of setting standards for the fi nancial and operating information of government is widely recognized and one of the primary state and local governments. reasons that the states have statutory and or regulatory In a letter to the SEC, NASACT states that members support authority to promulgate accounting standards within their efforts to improve disclosure through voluntary initiatives respective jurisdictions. The states delegated that authority such as the creation of the Municipal Securities Rulemaking to the Government Accounting Standards Board (GASB) in Board’s Electronic Municipal Market Access (EMMA) System 1984; however, the authority to set accounting standards still and industry best practices. The association similarly supports resides with the states.” efforts to improve the timeliness of disclosure by exploring how unaudited cash-based or budget-based fi nancial information A copy of NASACT’s letter to the SEC is available at www. can be provided on government websites to offer more timely nasasct.org. A full copy of the Commission’s report can be found fi nancial information to investors. under the municipal securities section of the SEC website (www. NASACT strongly objects to the Commission’s sec.gov/news/studies/2012/munireport073112.pdf). NASACT Continues to Promote Voluntary Improvements to Disclosures ASACT has long been an advocate of voluntary Ndisclosure in the municipal market. Links to interim disclosure information can be found on the state pages in NASACT’s online directory at www.nasact.org/nasact/ directory/index.cfm. Additionally, a NASACT group will be working in the coming year to identify best practices and new methods to enhance voluntary disclosure. NASACT News November 2012 page 1 Association Notes 2012 Election Results Incumbent State Vermont Treasurer Kelly The Green Mountain State has a new By Neal Hutchko, Policy Analyst Schmidt scored a 66 state auditor. Policy Analyst Doug Hoffer to 34 win over former defeated State Senator Vince Illuzi by here were 17 elections affecting Mandan School roughly 17,000 votes in a race where the Toffi ces held by NASACT members Board Member Ross third-party candidate garnered nearly during the recent November elections. Mushnik. 9,000 votes. Hoffer had previously worked Results are outlined below. under contract with the Offi ce of the State Auditor for fi ve years in the 1990s. Guam Oregon Incumbent Public Incumbent State Incumbent State Auditor Doris Flores Treasurer Ted Wheeler Treasurer Beth Pearce Brooks ran unopposed held onto his seat by retained her seat by a and retained her seat. a comfortable margin 52 to 40 margin over over Internet radio Rutland City Treasurer show host Tom Cox, Wendy Wilton. winning 58 to 37. Missouri Pennsylvania Incumbent State The Keystone State elected a new Washington Treasurer Clint State Auditor, selecting State Rep. The Evergreen State selected a new state Zweifel defeated State Eugene DePasquale over another state auditor, electing Troy Kelly over James Representative Cole representative, John Maher, by a very Watkins by a 52 to 48 margin. Mr. Kelly McNary to retain his close 49.7 to 46.5 vote. DePasquale was a former state representative and past seat by a 50 to 46 was deputy secretary for community chairman of the Joint Legislative Audit margin. revitalization at the state Department of Review Committee. Environmental Protection from 2003- North Carolina 2006has been serving in the state House of James McIntire Incumbent State Representatives since 2007. defended his seat as Auditor Beth Wood state treasurer against defeated Debra Incumbent State accountant Sharon Goldman 54 to 46 in a Treasurer Rob Hanek, winning by a highly-publicized race McCord defended 58 to 42 margin. that featured over 4.3 his seat 53 to 44 million votes cast. versus challenger and Washington County Incumbent State Commissioner Diana West Virginia Treasurer Janet Irey-Vaughn. Incumbent State Cowell also won by Auditor Glen B. a 54 to 46 margin, Utah Gainer III won defeating business The Beehive State has a new state auditor, another four-year term owner Steve Royal. with technology consultant John Dougall in the Mountain State, winning over Navy veteran Mark Sage by defeating challenger a 65 to 30 margin. Dougall was also a state Larry Faircloth by a representative for 10 years. margin of 58 to 42. North Dakota Incumbents in the Incumbent State Incumbent State Peace Garden State Treasurer Richard Treasurer John ran away with solid Ellis had little trouble Perdue also won victories. State in his re-election bid, another, defeating Auditor Robert “Bob” winning handily by State Senate Minority Peterson easily a 67 to 28 margin Leader Mike Hall by defended his seat, over tax consultant a margin of 55 to 45. winning by a 63 to 37 margin over State Christopher Stout. This will be Perdue’s House Assistant Minority Leader Scot fi fth term as state treasurer, an offi ce he Kelsh. has held since 1996. NASACT News November 2012 page 2 Association Notes New at www.nasact.org 2013 NASACT Committees Named he following new items have been posted on Strategic Committees TNASACT’s website: Training and Professional Development GASB Meeting Observations from August 22-24 at Chair: Martin J. Benison (MA) www.nasact.org/nasact/positions/GASB.cfm. Committee on Accounting, Reporting & Auditing (CARA) Co-Chairs: David J. McDermott (CO) and Auston Johnson (UT) NSAA technical inquiries on the following topics at www.nasact.org/nsaa/technical/index.cfm (members Financial Management & Intergovernmental Affairs (FMIAC) only content): Chair: D. Clark Partridge (AZ) TeamMate Usage by NSAA Members Membership Chair: Rebecca Otto (MN) NASC technical inquiries on the following topics at www.nasact.org/nasc/technical/index.cfm Administrative Committees (members only content): Audit Electronic Payments Chair: Mike Foley (NE) Posting State Salaries Budget Chair: Richard Ellis (UT) Comptroller’s Book Short- and Long- Constitution and Bylaws Chair: David Lillard, Jr. (TN) Term Portions Available Nominating he complete 2012 update Chair: Ronald L. Jones (AL) to State Comptrollers: T Personnel Technical Activities and Chair: Martin J. Benison (MA) Functions is now available on NASACT’s website at www. Resolutions nasact.org/nasc/publications/ Chair: Elaine M. Howle (CA) comptroller.cfm (members Strategic Planning only content). Non-members Chair: James B. Lewis (NM) may purchase the complete data set in NASACT’s Time and Place bookstore at www.nasact.org/ Chair: William G. Holland (IL) bookstore/index.cfm. For full committee rosters, minutes and other committee resources (some content, members only), visit www.nasact. org/nasact/committees/index.cfm. Upcoming Information Sharing Calls November • NASC Travel & P-Card Information Sharing November 28 December • NASACT Committee on Accounting, Reporting and Auditing December 4 • NSAA Performance Audit Information Sharing December 13 Get Involved! January For information on participating • NASACT Pension Implementation Group January 23 (With participation in any of these calls, contact from members of the American Institute of Certifi ed Public Accountants’ NASACT’s headquarters offi ce State and Local Government Expert Panel) at (859) 276-1147. • NSAA HR Information Sharing January 30 NASACT News November 2012 page 3 News From Washington/Around the Nation Pension Funding Taskforce Agrees • Build funding discipline into the policy to ensure promised benefi ts can be paid. on Broad Objectives to Fund Public • Maintain intergenerational equity so the cost of employee