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May 23, 2024

May 23, 2024

Michigan Committee on Governmental Auditing and Accounting

May 23, 2024

Approved Meeting Minutes

  1. Call to Order
    1. Cary Vaughn called the meeting to order at 10:02 a.m.
  2. Roll Call
    1. Members Present – 11
      1. Cary Vaughn – Department of Treasury
      2. Yongping McDonnell - Department of Treasury
      3. Rana Emmons – PSLZ
      4. Michelle Watterworth – Plante Moran
      5. Penny Ray – Milford, MI
      6. Anthony Moggio – City of Rochester
      7. Paul Matz – Rehmann
      8. Michael Slater – City of Livonia
      9. Wendy Trumbull – Canton Township, MI
      10. Tyler Baker (sub for Bill Tucker) – Maner Costerisan
      11. Eric Van Dop – Brickley DeLong
  3. Review of Prior Meeting Minutes
    1. The January 11, 2024, draft meeting minutes were sent out to the members for review on January 19, 2024. Comments were received and corrected. Committee approved revised minutes. The minutes and the agenda are posted on Treasury website.
  4. Old Business
    1. None
  5. New Business
    1. Member Introductions
      1. Cary Vaughn introduced a new member to the committee: Anthony Moggio from the City of Rochester who will represent the cities.
    2. Numbered Letter 2023-Release and 2024 Batch
      1. Treasury has begun the process of reviewing and updating the old-numbered letters in 2022. The goal is to review and update 20% of them each year. Mostly, it will be formatting updates. Ideally, we like to issue them within each year in which they are reviewed. Last year was a bit different with staffing shortages in our division. Our goal for this year is to issue them within 2024 calendar year.
    3. Uniform Reporting Format
      1. The Uniform Reporting Format was issued in January as planned.
    4. Budget Manual
      1. The Budget Manual was issued in April.
    5. Uniform Actuarial Assumptions for FY 2024
      1. Treasury released the uniform actuarial assumptions for FY 2024 last month.
    6. MCGAA Statement No. 4
      1. Treasury’s hope is to get this updated along with other numbered letters for 2024. We are getting ready to go through testing the APR process with the newly developed system in June and July, if not longer. With the staff shortage and the testing, we may get delayed on Statement No. 4 and the numbered letters. We appreciated MGFOA’s help with the draft.
    7. Road Manual
      1. Various topics were discussed with the County Road Association. Purchase of Federal Aid, Equipment Rental and Depreciation (motor-pool). Moving forward with standards-based changes to the accounting manual as Bill Tucker suggested. We will likely have more updates in our next meeting.
    8. MDOT Act 51 Report Redesign
      1. Treasury has been working with MDOT on the redesign of the Act 51 report. MDOT is the lead on this. They reached out to us in January and have had meetings with them. They are determining the uses of the data they are collecting and looking to reduce the amount of data that is being collected. There have been discussions about removing the capital assets page, equipment rental credits and depreciation credits as well as others. Their plan is to meet with Treasury weekly or bi-weekly.
    9. Uniform Chart of Accounts
      1. Originally, we planned to issue the updated version in January 2024, however, we were unable to do so. The plan now is to go through formatting changes to be in compliance with Treasury requirements and hope to issue it before the end of the year.
    10. Delinquent Tax Revolving Fund Accounting
      1. Mary Mitchell, Treasurer at Emmett County, with a group of accounting professionals from various local governments, have been working together on a draft proposal accounting plan for Treasury. The last time we contacted her in late March, she was wrapping up a settlement and was hoping to get back to the DTFR accounting project after that. We will continue to follow up with her.
    11. APR Update with New System
      1. In the last meeting, Cary updated the committee on the changes that were being made to the F65 report and APR. We were told that by the end of May, the external APR testing will be ready for us to do. The internal APR testing will be ready in early August. Cary asked the committee if anyone would be interested in doing APR external testing in June or July. They can email Cary if they are interested.
    12. F65 Redesign
      1. We know it is not an easy form to use. With the new system being developed, we may have a chance to review the F65 report and possible redesign the form. You may recall that the 5572 information will be added to the F65 and that is still in the works by our IT department. We would like to rewrite the F65 to make it more consistent with the Uniform Chart of Accounts but not too detailed as the UCA and for it to be more user friendly. As of now, we are unable to determine the direction we can go and how much we can do at this point due to the US Census agency and others who are pulling the F65 data and there may be a limitation on how much we can do with the new system.
    13. Treasury Webinar
      1. We are planning to have another Chart Chat Webinar on May 30th. Topics include Corrective Action Plan submissions, Budget Projection Tool, Uniform Actuarial Assumptions (PA 2 of 2017) and Headlee Override.
    14. Items on the To Do List
      1. F65 Form Update
      2. Audit Manual
      3. Transit Manual
      4. Website for LAFD
  6. Adjournment
    1. 10:48AM