April 27, 2023

Michigan Committee on Governmental Accounting and Auditing Statements

April 27, 2023

Meeting Agenda

1. Call to Order
2. Prior Meeting Minutes Approval
3. Numbered Letters
   1. MCGAA-09 – Revenue Recognition of Property Taxes
      1. When the county purchases the delinquent taxes of a local unit, those delinquent taxes would be recognized in the corresponding fiscal year that the current tax is recognized as revenue. If the 60-day test is not met (as illustrated in section 2 above), the period being used, and related facts would be disclosed in the notes to the financial statements.
   2. 1994-10 – State Education Tax (SET) Local Unit Treasurers Collection & Rptg Procedures
      1. MCGAA: The State Tax Commission will be issuing a bulletin in the near future for this. The letter should be updated with a link or other reference to that bulletin.
      2. We cannot find a new bulletin.
   3. 1997-01 – Accrual of State Shared Revenues
      1. MCGAA: This is written assuming all local units have adopted a 60-day period of availability under GAAP...
      2. For consistency, I am proposing to keep it as is. Should we speak to the 60-day assumption or just leave the dates in the statement as it has been?
4. XBRL Status Update
5. Auditing Procedures Report, Treasury’s Review Process, and Other Improvements
6. Budget Manual Status Update
7. Uniform Reporting Format
   1. Comparable audited information required in the MD&A if the local unit is not audited every year
   2. Budget to actual reports must show a variance column
      1. Negative variances should be bad
   3. There must be a budget to actual detail report for the General fund
      1. Must be reported on the level of control passed by the governing body which should be the activity level at a minimum.
   4. All pdf files must be searchable
   5. Locking pdf for copying and pasting
   6. Audit adjustments to be included in reporting package?
   7. There must be row descriptions on each page for exhibits?
   8. Pension and OPEB must be reported regardless of materiality
   9. Numbered Letter 2018-3
      1. There have been some questions regarding how to report the ADC in the audit with GASB No. 75 in effect. Once calculated, for plans with a qualifying trust or equivalent arrangement, GAAP requires the disclosure of the ADC in the required supplementary information (RSI) section of the audited financial statements in accordance with GASB No. 75. OPEB plans that are not administered through trusts are not required by GAAP to disclose the ADC in the RSI section of the financial statements; those plans should disclose this information in the notes to the financial statements, instead of the RSI.
8. New Members
9. Suggested Topics for Next Meeting
10. Adjourn