March 2002                                                                                                                                                         

It is the Newsletter Committee’s goal to provide timely, educational and relevant information to the VGFOA members.  Participation of the VGFOA members in providing feedback, writing relevant articles and/or providing other information to further the goals of the Newsletter Committee is strongly encouraged.  Please visit the VGFOA website at www.vgfoa.org; contact VGFOA Board members or contact Newsletter Committee members for additional information and/or feedback. Newsletter Issues: March, June, September and December.

 

 

 

 

President’s Message – Bill Johnson

 

 

I hope this newsletter finds everyone well and surviving the current financial challenges the State is experiencing. Little did we realize when the thirty-fourth annual conference “Expanding Your Financial Horizons” was developed, how all our outlooks would be changed with the events of September 11th and the current financial situation. We will all be tested to provide maximum support to our employers as we adapt to changing business conditions.

 

The Board has been busy following current State legislation, GASB developments and providing educational opportunities for you in the upcoming year. We are dedicated to provide you the support that you need and expect from your association in the upcoming year. I hope that you will plan to attend the conferences and take advantage of the educational opportunities that are available.

 

Please let me or any Board member know how we can be of greater service to you.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


VGFOA Executive Board October 2001 - October 2002

 

The Executive Board generally meets quarterly in November, March, May and September.

 

 


Officers:

                                               

President:                                             William E. Johnson, Director of Finance, City of Colonial Heights.

Tele#: (804) 520-9261. Email: johnsonw@colonial-heights.com

President-Elect:                                    Joseph P. Casey, Director of Finance and Management Services, County of Hanover.

Tele#: (804) 365-6015. Email: jcasey@co.hanover.va.us

Vice President:                         Larry D. Clark, Director of Finance, County of Prince George.

Tele#: (804) 733-2610. Email: ldclark@princegeorgeva.org

Executive Secretary-Treasurer:             Judy Gough, Division Manager, County of Albemarle.

Tele#: (434) 296-5847. E-mail: jgough@albemarle.org

 


Directors/ Chairpersons:

Awards and Membership Committee:   Jeanne Colvin, Finance Director, City of Staunton.

Tele#: (540) 332-3822. Email: colvinjr@ci.staunton.va.us

Education Committee:              Phil Grant, Director of Finance, Town of Vienna.

Tele#: (703) 255-6320. Email: finance@ci.vienna.va.us

Rebecca Owens, Finance Manager, County of Roanoke.

Tele#: (540) 772-2020, Ext. 327. Email: rowens@co.roanoke.va.us

Newsletter Committee:              Terry S. Adams, Utility Controller, County of Hanover.                                                                                                      Tele#: (804) 365-6016. Email: tsadams@co.hanover.va.us

Govt. Finance Research Committee:     Mary E. Lechner, City Controller, City of Portsmouth.                                                                  Tele#: (757) 393-5082. Email: lechnerm@ci.portsmouth.va.us

Technology Committee:                       Raoul James Kister, Finance Director, Albemarle County Service Authority.                                                                       Tele#: (434) 977-4511, Ext. 107. Email: rjkister@acsanet.com

Past President:                          Shelley Carmichael, Assistant Director of Finance, County of Stafford.

Tele#: (540) 658-8692. Email: scarmichael@co.stafford.va.us

State Representative:                            Clarence C. Daniel, Jr., Accounting Division Director, County of Henrico.

Tele#: (804) 501-4557. Email: dan@co.henrico.va.us

 

 

 

 

CALENDAR OF UPCOMING EVENTS

 

March 21-22

VGFOA – Innovations, Technology and Management Issues Conference

Roanoke

April 22-23

VGFOA – Intermediate Accounting

Charlottesville

May 5-8

VGFOA - Spring Conference

Virginia Beach

June 16-19

GFOA – Annual Conference

Denver, CO

October 23-25

VGFOA – Fall Conference

Richmond

 

 

 

 

 

                                                           

BEFORE DENVER AND THE GFOA

PLAN TO BE IN VIRGINIA BEACH – SOMETHING FOR EVERYONE!

MAY 5– 8, VGFOA SPRING CONFERENCE

 

IN COLLABORATION WITH THE VIRGINIA RESOURCE AUTHORITY (VRA)

VRA CONFERENCE IMMEDIATELY FOLLOWS VGFOA CONFERENCE AT SAME LOCATION!

Topics include:  GASB 34, General Assembly Update, Media Relations and MORE!

Updates from Collaborating Organizations including VRA, SNAP, APA

Speakers include:  Virginia Secretary of Finance - The Honorable John M. Bennett, Betty Long of VML and Claire Morris of SNAP

 

 

 

 

Fall Conference Update – Joe Casey

       

Reserve October 23-25, 2002 on your calendar for the VGFOA Annual Fall Conference to be held at the Omni Hotel in Richmond.  We are hoping to bring informative sessions and exciting speakers as well as provide for fellowship opportunities.  If you have any suggestions or input regarding speakers and topics, please contact Joe Casey at (804) 365-6012 or via e-mail at jcasey@co.hanover.va.us.

 

                                                       

 

 

Need the latest legislative information?

 

www.vaco.org – Virginia Association of Counties

www.vml.org – Virginia Municipal League

www.state.va.us – Commonwealth of Virginia

http://www.vipnet.org/portal/government/index.htm – Code of Virginia

                                               

HIGHLIGHTS FROM FALL CONFERENCE 2001:         

 

As the Fall 2001 conference landed on the heels of September 11, 2001, we remember all of those who lost their lives in the World Trade Center and the Pentagon – and pay special tribute to the public servants who gave their lives in an effort to save others.

 

 

                                                                                                                                               

 

Keynote Address – Mr. Pat Pate, President-Elect - GFOA

 

Mr. Pat Pate, President-Elect of the Government Finance Officer’s Association (GFOA), shared his personal reflection of how the events of September 11th, should serve to remind us of those public servants and others on the front-line that we in Finance exist to serve.   “Those firefighters could have been any of ours.”

 

Regarding GFOA activities and his future terms as President of the Association, Mr. Pate wants to emphasize partnerships within the organization (i.e.: national and local, Executive Board and Committees).  The GFOA’s current Executive Board priorities and key activities include:

 

·        Sustainability – The ability to create an economy that is viable in the future.  Have we provided the resources and infrastructure for the future of our communities?

·        New Financial Reporting Model – Compliance with GASB 34 – and assistance to members and localities with training and publications.

·        Performance Measurement Initiative – While the GFOA supports and advocates performance measures, they do not feel this information should be mandated by the GASB.

·        Standing Committees – Building participation and membership of the GFOA standing committees.  See the GFOA website for further information.

·        Publications – Be aware of what is available and participate.  Submit articles for publication in Government Finance Review.

·        Training – Annual Conference in Denver, internet training and CPFO certification program

 

“The key challenge for finance officers – as we move forward – is to remember that what we are doing makes a difference in the lives of the people we serve.”

 

 

GASB 34 Update – Ms. Staci Henshaw, APA

 

Ms. Henshaw provided an overview of the APA – GASB 34 activities, including the APA GASB 34 Focus Group, the latest official guidance, an update of the GASB/AICPA activities and the announcement of the Comparative Cost Report Project.

 

The GASB 34 Focus Group discusses current issues surrounding the implementation of GASB 34, as a resource to and to facilitate consistency among local governments.  Highlights of the meetings are on the APA’s GASB 34 website, www.apa.state.va.us.

 

The latest official guidance includes school presentation (to be updated pending the outcome of proposed legislation before the General Assembly), infrastructure, budgetary reporting, revenue classification, and GASB 33 evaluation tool.

 

 

School Funding Formulas – Becky Dickson, Director of Budget & Management – Chesterfield Co.

 

Ms. Dickson presented information regarding Chesterfield County’s methodology for determining the local transfer to schools.  “For years, there was no methodology for calculating the General Fund Transfer to Schools.  Annual negotiations and “show-downs” took place every budget season.”

 

Highlights of the County’s existing funding formula included:

·        Determining a preliminary target for schools – 71.6% of net property taxes (previous 10 year history supported)

·        Schools and County share in maintaining and contributing to the County’s required fund balance to maintain level of 7.5% of General Fund expenditures

·        Expenditures for projects related to “property tax collections” would also be shared by County and Schools (i.e.: new systems for assessment and/or collection)

 

Highlights of Chesterfield’s new approach includes:

·        Linking trends in school enrollment growth to total population

o       If enrollment declines (in proportion to total population) – schools receive lower allocation

o       If enrollment grows (in proportion to total population) – schools receive greater allocation of funding

·        The new approach uses a 5 year “rolling average” (for both enrollment and county population), eliminating significant changes in any given year

·        Used FY 98 as “base year” for FY 99 budget process – to calculate local transfer to schools

·        Preliminary budget target is transmitted to Schools in late September, and a revised target is transmitted late the following January, using updated tax projections.

·        The methodology “works”, as it is clearly quantifiable and easily understood.  “It provides a consistent, predictable system for both the County and the School Board, minimizing conflict during the budget process.  Issues are resolved at the staff level with the commitment to openly share information, issues and concerns.

·        A commitment between the County and Schools exists that all unspent appropriations and/or any surplus tax revenue (over budget) would be returned to the School Board for use in the current or future budgets – for non-recurring items.

 

 

VGFOA Awards - 2001:                                                    

 

The 2001 VGFOA Award winners were James City County for a program titled “Electronic Form Filler” and Prince William County for a program titled “Tax Administration Re-Engineering”. 

 

 

 

 

The Awards Program was established to recognize Virginia jurisdictions that have developed innovative programs and to share this information with other VGFOA members.  New in 2001, VGFOA accepted copies of applications prepared and submitted to other state and nationally recognized award programs with a completed VGFOA entry form.  For the 2001 program, VGFOA received seven quality submissions that made it very difficult to choose winners.  Submissions were received from City of Alexandria, Chesterfield County, Fairfax County, Henrico County, James City County, Prince William County and City of Virginia Beach. 

           

Congratulations to the winners and a special thanks to all localities who submitted applications.

 

 

 

 

VGFOA COMMITTEE REPORTS

 

 

 

AWARDS & MEMBERSHIP COMMITTEE:

 

Farewell to Donna Rexrode and our greatest appreciation for her years of service on the VGFOA Board from 1997 to 2001.   We also welcome Jeanne Colvin as the new chairperson of the Awards and Membership Committee.

 

Applications for the VGFOA 2002 Awards Program will be mailed this summer.  Remember, copies of other award submissions are accepted with an accompanying VGFOA entry form.  

 

 

 

EDUCATION COMMITTEE:

 

Please refer to the Upcoming Events Calendar for scheduled training.  Also, all educational offerings are included on the VGFOA web site at www.vgfoa.org throughout the year.  Please contact co-chairpersons Phil Grant or Rebecca Owens with suggestions or request for future educational offerings.

 

 

 

NEWSLETTER COMMITTEE:

 

“Former” Newsletter Chairperson – Mary Lechner

 

Have you noticed that the Newsletter has been MIA (missing in action) – well, please accept my sincere apologies, as I was rather sidetracked this year with the birth of my third daughter, and new employment.  Since this newsletter is a key component of our communication strategy, the Executive Board has approved the reassignment of two committee chairs, Terry Adams, former chairperson of the Government Finance Research Committee and myself.  Terry assumes the helm of the newsletter with this addition.   I will remain a regular contributor … as can any and all of you!

 

All of the VGFOA committee chairpersons could use your assistance on their committees.  The VGFOA is your voluntary organization and its success is directly related to the participation of its membership.  Please consider volunteering your knowledge and resources to the committee of your choice – the committee chairs are listed on the second page of this newsletter.

 

 

 

GOVERNMENT FINANCE & RESEARCH COMMITTEE:

           

 

GASB 34 UPDATE – Mary Lechner

 

Well – the wild and wonderful roller coaster ride – otherwise known as GASB 34, continues to thrill and excite us as we all busily implement the standard.  The ride has made a brief stop in the Virginia General Assembly with the proposed Senate Bill 276, which, at this newsletter publication date, has passed the Senate. On February 22, 2002 the House Committee on Counties, Cities and Towns unanimously passed SB 276 and we are now awaiting full vote from the House of Representatives. We anticipate the bill will pass.  Further information on the impact of this legislation will be forthcoming form the APA and the APA GASB34 Focus Group. 

 

So what is SB 276?  If you recall, the APA and its GASB 34 Focus Group, consisting of representatives of local government, public accounting firms, and schools has been contending with the issue of presenting school capital assets and the related debt in the government wide financial statements.  To summarize our arduous journey …  First the school assets and debt were in (presented together in the primary government column of the new financial statements or school component unit) … then out … liabilities in, assets out … etc. and so on.  Why all of this confusion you may ask?   Initially, the Focus Group relied on the lack of specific guidance regarding our Virginia school/locality relationship in GASB 34 and referred to previous guidance provided by the GASB during the implementation of GASB 14. This guidance recommended localities (based on specific Virginia facts) allocate the debt for school capital assets to the school component unit, which, according to current Code, has title to those assets.  But the release of the second GASB 34 implementation guide changed all that. A question included in the implementation guide addresses whether general obligation debt issued by a local government for the purpose of constructing capital facilities for a component unit can be reported in the component unit’s financial statements.  The answer states that a component unit should report the debt as a liability only if it is legally obligated to repay it.  Since Virginia school boards are not legally obligated to repay general obligation debt of the local government, this question effectively eliminates the current practice of allocating “on-behalf” of debt.

 

Following an unsuccessful effort by the APA, the Focus Group and many Virginia localities to have the question removed from the implementation guide (during the comment phase), the APA and Focus Group went back to the drawing board to find any other means by which schools assets and the related debt could be presented together in the financial statements, eliminating the deficit impact on unrestricted net assets.  And the only remaining solution, was to propose legislation to amend the code regarding ownership of school assets.  Hence … SB 276.  While the APA did not introduce or sponsor this legislation, the APA and staff have worked very hard to research and provide information on this matter and during the entire implementation of GASB 34.

 

The proposed legislation will make the locality a “Tenant in Common” and create shared ownership thus permitting the locality to record the asset on its financial statements until the debt is retired.  (Relying on the maintenance provision of asset ownership in GASB 34 – where title is not clear, who maintains the asset?)  While schools may physically perform the maintenance, the locality controls funding for and technically “pays” for maintenance.  The legislation simply corrects an accounting problem, and by no means impacts the control, management or maintenance of those assets, nor changes any existing budgetary or internal accounting practices.

 

The Executive Board of the Virginia Government Finance Officer’s Association (VGFOA) supports this legislation, as we feel the presentation of school assets with the corresponding debt more accurately reflects the underlying economic transaction, rather than the presentation proposed by the GASB.  Further, we are concerned that financial statement presentation under the current legislation is misleading and may adversely impact school capital funding decisions, particularly in small rural counties.   The VGFOA will keep you up to date on the progress of this legislation and other Focus Group and GASB 34 training and initiatives.

 

 

 

SOME GASB 34 RESOURCE LINKS

 

www.apa.state.va.us - APA GASB 34 Web site: Focus Group activities, links, revenue guidance, GASB 33 etc.

www.vgfoa.org – VGFOA official web site: Training calendar, GASB 34 and other training links

www.gfoa.org – GFOA official web site: Links to GASB 34 training, publications, etc.

www.vdot.state.va.us/info/gasb34 – INFRASTRUCTURE!  VDOT has policies and values – check it out

 

 

 

 

TECHNOLOGY COMMITTEE – Jim Kister:

 

The site putters along, without input, guidance, hindrance or let.  Its most useful features, the membership directories and activity calendar, are carefully maintained; the rest sit quietly, awaiting inspiration.

 

I recently tried a survey to see how many of my utility’s customers were interested in on-line billing.  Step One:  printed a message on all 13,500 bills inviting potential users to visit our website (to insure that respondents actually had access to on-line activity).  Step Two: created a very brief questionnaire on the site.  Step Three: directed that responses to the questionnaire be sent to a special e-mail account (to test the ability to follow instructions).  End result: 41 replies, 38 of which expressed outrage at the possibility some small charge might be imposed for this service.  I am close to being convinced that if you aren’t selling books or porn, the Web isn’t yet a useful tool.  Don’t take my word for it—ask WebVan.

 

We suddenly live in a difficult time, and that might be coloring this message: it’s hard to focus on this stuff.  But as a recently elected VGFOA Board member (everything old is new again) assigned to technologize us, I want to do the best I can, so I’m asking for your input.  What does the membership want on our site?  If my last survey is indicative, asking you to e-mail me at rjkister@acsanet.com will result in 1.4 messages.  If you’re going to be one of those 1.4 people, please make it good: rant, vent, condemn, dismiss with disdain, or even volunteer to help.  I have lots of ideas, but they’re mine, and therefore suspect.  I’m beginning to feel like one of those sun-crazed zanies in the Southwest who builds bottle cap-and-cement dioramas of the first three books of the Bible, fervently believing that Charles Kuralt will eventually show up: no one has the heart to tell him Chuck is dead.

 

Specifically:

           

 

 

 

 

We could make this a useful project, but only with a big dose of “We.”  I’m getting old, my feet hurt, and “cui bono?” taints my enthusiasms; so let me know what you think (only, please, not in all caps).

 

 

 

                                                                            

 

VGFOA December 2001 Board Meeting - In an effort to support continuing education and Virginia representation at national training events, the VGFOA Executive Board included in the 2002 Budget funding for a scholarship to the GFOA Advanced Governmental Finance Institute. The candidate was selected from Board nominations and we are pleased to announce that James McReynolds of York County is the recipient of the 2002 scholarship.  Mac, currently County Administrator for York County, is a former Finance Director and was President of the VGFOA in 1994.  Congratulations Mac!

 

 

 

 

 

 

 

 

 “BACK- PAGE”

This section represents a collection of various items submitted by the members that may be of general interest to all members. Included in this would be job opportunities; accomplishments and awards to members or their entities; general comments or viewpoints that you are willing to share; GFOA news; and updates on former members. Please feel free to e-mail any short narrative that you would like to include.

 

 

EMPLOYMENT OPPORTUNITIES:

 

 

Finance Director

Northampton County, Virginia

 

Dynamic, growing County (population 13,000) on Virginia’s Eastern Shore seeks Finance Director.  Position serves as primary financial advisor to Board of Supervisors and County Administrator as well as financial liaison to constitutional Officers and School Board.  Responsibilities include planning, oversight and direction of all accounting and financial services (payroll, accounts payable, general ledger) including budget preparation and administration, revenue projection and analysis, cash management, fixed asset administration, procurement and contract administration, capital plan development and financing, grant accounting and reporting, implementation and oversight of financial and other information systems, oversight and direction of County external audit and preparation of all required financial statements and reports in accordance with promulgated governmental accounting standards and legal requirements.  Requires any combination of education/training and experience equivalent to graduation from a college/university with degree in accounting, business administration or related field with 5+ years experience in local government finance.  CPA preferred.  Salary: DOQ/DOE (+) benefits and possible relocation assistance.  Full job description available upon request.  Submit resume and business references to Goodman Consulting, P.O. Box 12018, Newport News, VA 23612.  Attn: Aimée Skinner E-mail: gctrecruiting@goodmanct.com. Position open until filled.

 

 

 

DEPARTMENT OF INFORMATION TECHNOLOGY

General Accounting Manager - Position S3304

Role Title: Financial Services Manager I, PB 5

 

DIT is looking for an energetic, assertive, customer-service oriented leader to serve as the General Accounting Manager for the state's central information technology agency, which operates in the same manner as a private enterprise.  This position reports to the Assistant Controller, and manages a staff of seven professional and clerical employees engaged in the following traditional financial activities for the Department and two sister agencies: general accounting and financial reporting; payroll processing; disbursements processing; cash collections; travel authorization; and follow-up on delinquent accounts receivable.

 

Position requires comprehensive knowledge of governmental GAAP; previous accounting and/or auditing management experience; and excellent written and oral communications skills.  Position requires CPA certificate with college accounting degree, although previous work experience may substitute.  The ability to work in dynamic, high-pressure situations; experience in evaluating manual and automated processes; payroll processing experience; state accounting and financial reporting experience; and experience with PeopleSoft financial accounting software are also highly desirable.

 

Salary is commensurate with experience, but not to exceed$71,646.

 

 

 

 

 


GFOA National Conference in Denver, Colorado (June 16 – 19) - Plan to visit the VGFOA Hospitality Suite at the Marriott City Center while in Denver.  The room number is not currently available.  Please check the VGFOA website www.vgfoa.org for the room number closer to the conference date.   

 

 

Congratulations to W. Forrest Matthews on his appointment as Director of the Virginia Retirement System.  Forrest was previously the Chairman of the Board of Trustees for VRS.

 

 

John Tuohy is now Finance Director of the Virginia Railway Express.  His contact information is 1500 King Street, Suite 202, Alexandria, Virginia 22314, (703) 684-1001, ext. 750, jtuohy@vre.org.  Congratulations to John on his new position. 

 

 

Congratulations to Shelley Carmichael on her promotion to Assistant Director of Finance for Stafford County.

 

 

You can now find Mary Lechner at the City of Portsmouth.  Mary recently accepted the position of City Controller.

 

 

AGA TRAINING - New topics are presented at the next AGA/NASACT satellite teleconference, entitled "Experiences in Preparing, Auditing and Using Financial Statements Under GASB 34". The teleconference is planned for Wednesday, May 8, 2002 from 9:30 to 6:00.  This CPE training is coming to you via satellite, which will save you time and travel costs.  Register on-line for the Maryland or Virginia satellite site nearest you at the AGA’s website, www.agacgfm.org. There will be a light continental breakfast prior to the beginning of the broadcast. Directions to lunch sites will be given at the site.

 

During this one-day special training event, GASB Chair and Staff will provide an overview on preparing; auditing and using GASB 34 based financial statements. You will hear from early implementers on the challenges of preparing GASB 34 based financial statements.  And members of the AICPA State and Local Government Audit Guide Task will address the new "hot off the press" AICPA State and Local Government Audit Guide. They will discuss the criteria that auditors must follow in conducting audits of GASB 34 based financial statements.

 

 

 

GFOA News – The new BLUE-BOOK is AVAILABLE (for further information contact GFOA at 312-977-9700 or WWW.GFOA.ORG

 

 

 

 

 

 


Terry S. Adams, Newsletter Chairperson

Virginia Government Finance Officers Association

P. O. Box 470

Hanover, Virginia 23069