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October 26, 2023

October 26, 2023

Michigan Committee on Governmental Auditing and Accounting

October 26, 2023

Meeting Minutes

  1. Call to Order
    1. Cary Vaughn called the meeting to order at 10:01 a.m.
  2. Roll Call
    1. Members Present – 10
      1. Cary Vaughn – Department of Treasury
      2. Michelle Watterworth – Plante Moran
      3. Eric Van Dop – Brickley DeLong
      4. Michael Slater – City of Livonia
      5. Rana Emmons – PSLZ
      6. Yongping McDonnell – Department of Treasury
      7. Paul Matz – Rehmann
      8. Bill Tucker – Maner Consterisan
      9. Bridgette Gransden – Midland, MI
      10. Penny Ray – Milford, MI
  3. Review of Prior Meeting Minutes
    1. Cary Vaughn will send out the draft meetings minutes from the July 13, 2023 meeting for the committee to review.
  4. Old Business
    1. None
  5. New Business
    1. Member Introductions
      1. Cary Vaughn introduced the new members to the committee: Paul Matz, Penny Ray, Bridgette Gransden, and Yongping McDonnell. Each member introduced themselves to the group. Cary indicated that the committee still need a member from a township. Michelle Watterworth said she could recommend some if needed. Cary asked her to do so and thanked her. Michelle asked if a future member should be considered as Mike Slater will retire in early 2024.
    2. Numbered Letter for Accounting for State Pension Grants
      1. Cary Vaughn reviewed the updated numbered letter for accounting for state pension grants with the committee. The committee discussed and had questions regarding the changes. Some of the comments/questions include what to do for a local unit that does their own pension, whether it is more helpful to just indicate that the other side of entry can be just expenses, deferred outflows, or liabilities instead of listing out the detailed entries in the letter, and entries for enterprise funds. Cary wrote down the notes and will make revisions accordingly.
    3. XBRL Status Update
      1. Cary Vaughn updated the MCGAA committee. The final report is being drafted now but unsure of when the release date will be.
    4. Budget Manual Status Update
      1. Cary Vaughn sent the budget manual out to the committee to review the changes and the Treasury’s response to the comments made by the committee, and thanked Yongping for all the updates. Cary reviewed the updates with the committee and asked for questions, comments, or concerns. Michelle Watterworth indicated the Treasury’s responses made sense to her. No other comments, questions, or concerns were made. The exposure draft is scheduled to go out by the end of this year or early next year. Cary indicated that the committee still has a chance to provide comments after the exposure draft is out.
    5. Road Manual Status Update
      1. Cary Vaughn informed the committee that the road manual was updated about a year ago. Treasury is now working on a second version. MDOT and the Road Commissions will need to be involved. Bill Tucker asked if the Treasury could work on updating the manual with newer standards first. Cary agreed with him.
    6. Uniform Reporting Format
      1. Cary Vaughn updated the committee about the exposure draft being scheduled to be published on Oct 31. He asked the committee to send their comments, questions and concerns to him and they will review.
    7. Uniform Chart of Accounts
      1. Cary Vaughn informed the Committee that changes will be once a year with revisions, etc. instead of waiting several years in between updates. This year, Treasury only is making formatting updates mostly. Penny Ray asked a question about activity numbers for some revenue accounts, and Cary will get back to her after the meeting.
    8. Delinquent Tax Revolving Fund Accounting Status Update
      1. Cary Vaughn updated the committee. Cary and Yongping had a meeting with the group who has been working on this in July. They indicated they will send us their proposals once they finalize it. Cary let the committee know that Yongping just reached out to them before the meeting and is waiting for their response.
    9. Technical Support
      1. Cary Vaughn informed the committee that Treasury has a small amount of money to local units with their accounting. If anyone on the committee knows of a local unit in need to let him know.
      2. Cary Vaughn also gave an update on the process of Elite 2.0 to the committee. He explained some of the changes made to the APR and the F65. Changes are made to the some of the questions on the APR and less numbers need to be entered on the form. With F65, 5572 form will be integrated to the F65 and after that, 5572 will be eliminated.
    10. Review No. Letters 1999-05 and Other Numbered Letters
      1. Cary Vaughn updated the committee the status of the numbered letters. The Treasury has been going through an ongoing process of updating the numbered letters. This year, there will be 20 or so letters that will be released early next year. Cary Vaughn informed the committee that he sent the letters out to the committee a few days ago before the meeting and wanted to run the suggested changes by them before being sent out for the 30-day exposure draft. Rana Emmons asked if 2000-2 and 2000-6 could combine as they both talk about Statewide Construction Code Act. Cary responded that Treasury has combined them. Penny Ray asked questions regarding separate police fund and state construction codes, and Cary said he will follow up on this after the meeting.
      2. Michelle Watterworth mentioned that she had several comments on the numbered letters that were distributed for review and will provide feedback via email after the meeting.
    11. Suggested Topics for Next Meeting
      1. Cary Vaughn asked the committee if they have topics to talk about for the next meeting to email him their suggestions.
    12. Future Meetings
      1. Cary Vaughn informed the committee that he will send out a doodle with potential dates for the 2024 meetings.
  6. Adjournment
    1. 12:00PM