Financial Management

The Federal Emergency Management Agency's (FEMA) Public Assistance Program was activated March 13, 2020, when President Trump declared the ongoing coronavirus pandemic an emergency under the Stafford Act. With recent passage of the CARES Act, the program has received an influx of resources available to state and local governments.

Based on our years of experience auditing FEMA public assistance grants and FEMA's current guidance, we have a few suggestions and resources for you:

Document your expenses

We know there's a lot of information coming out right now about federal grant programs and other federal financial assistance. It can be challenging to find information and resources you might be interested in, so we have done some legwork for you. Here are some resources you might find helpful as you seek and apply for federal grant funding:

Local governments are navigating many new areas while managing operations in response to coronavirus. Here is some information and links to resources. Thanks go to the Municipal Research and Services Center (MRSC) for its timely guidance provided in several important areas of this guidance.

Guidance from SAO on accounting-related matters

Do you use a checklist to prepare or review your financial statements? If not, maybe you should! Checklists are a great way to make sure you remember important steps.

Nothing is more synonymous with accounting and finance than the monthly reconciliation. Recall even your most basic memory of “finance,” and the importance of balancing your personal checkbook. This essential control activity to government finance not only ensures that banking and accounting records are accurate, but is also a component of identifying unusual transactions that might result from fraud.

Accounting and reporting standards and guidance for leases are changing for both GAAP and cash basis local governments, effective for fiscal years ending December 31, 2020, and after.

Although you won't be preparing your financial statements and notes until early 2021, those first lease payments under the new standard will begin to flow in January 2020. Will you be ready?

Accounting and reporting principles are changing

Segregation of duties, or separating conflicting duty assignments in your government, can help protect your local government's assets. But which duties do you segregate, and what are your options if you cannot feasibly do this? What if you are a very small entity with limited resources?

By the Center for Government Innovation

Estimated reading time: 2 minutes

The Center for Government Innovation has published two new resources to help local governments identify best practices for two different, but possibly related areas: credit card programs and travel expenditures.

Credit card programs

Local governments are beginning to implement GASB Statement No. 83 on asset retirement obligations, or ARO's, which is effective for reporting periods beginning after June 15, 2018. For GAAP reporting entities, this new standard requires reporting liabilities for future costs related to retiring assets. For example, costs related to a well or sewer lagoon closure or reclamation of gravel or sand stock areas. Cash basis governments should report these obligations on Schedule 9 (Schedule of Liabilities) and disclose them.

While talking with community members in Kitsap County recently, State Auditor Pat McCarthy was asked, “Where does the State Auditor's Office money come from, and where does it go?”