A challenge to 501(c)(3) status

is described in this blog post http://taxprof.typepad.com/taxprof_blog/2013/12/cornell-law-prof.html

Detroit pension cuts allowed says Judge

Calling attention to the fact that a pension was a contract was an important part of the decision.   http://www.freep.com/article/20131203/NEWS01/312030159/Retirees-brace-pension-cuts-wake-Detroit-bankruptcy-ruling

Treasury and IRS Guidance for social welfare organization

501c4 organizations will get new guidance defining
"candidate-related political activity" today.   http://www.treasury.gov/press-center/press-releases/Pages/jl2225.aspx

Paying for a ball field

What won't be paid for, in order for this ball stadium to take place?

http://www.economist.com/blogs/democracyinamerica/2013/11/stadium-financing

http://www.forbes.com/sites/kellyphillipserb/2013/11/13/braves-new-world-taxpayer-funding-remains-a-concern-as-atlanta-rushes-towards-new-stadium/

http://deadspin.com/heres-how-cobb-county-will-pay-for-the-braves-ballpar-1464404976

Pension Standard Transitions

ala GASB Statement 71  http://www.journalofaccountancy.com/News/2013-9159.htm

One view of the best and worst run states

 is included.   http://247wallst.com/special-report/2013/11/21/the-best-and-worst-run-states-in-america-a-survey-of-all-50-2/2/

GASB 65 and public power providers

How GASB 65 will affect the public power providers is pointed out courtesy of BKD.
 
Debt issuance costs and understanding the circumstance for choosing between a liability or deferred inflow or an asset and a deferred outflow are discussed.    Implementation date makes this immediately relevant.

http://www.bkd.com/articles/2013/implementation-of-gasb-statement-number-65-will-affect-many-public-power-providers.htm?mkt_tok=3RkMMJWWfF9wsRoksqzBZKXonjHpfsX56OkpXaC1lMI%2F0ER3fOvrPUfGjI4AT8ZlI%2BSLDwEYGJlv6SgFT7nDMaxwy7gIWxQ%3D

Cities fighting for solvency

8 out of 12 municipal bankruptcies in the last 3 years.   What are reasons and how to stop the downward slide are suggested here.  http://ww2.cfo.com/accounting-tax/2013/11/cities-brink/

Federal goverment and transformational management agenda

A "new management agenda" with focus on accounting and financial management is the goal  according to interim OMB controller.   This was at a meeting of AGA.    http://www.federaltimes.com/article/20131110/DEPARTMENTS06/311100003/White-House-finalizing-new-management-initiatives-OMB-says?odyssey=mod|newswell|text|FRONTPAGE|p

Special purpose governments

and the perceived inefficiencies.   Mosquito abatement, West Nile Virus.....necessary but effective?   If the wages and pensions are more than the insecticide, that is the question!   Illinois is featured in its prominence with the most local governments.   More than any other state.   The article refers to these as feifdoms that provide handouts to a select few.   There is a chart to look at the other states as comparison across the nation.   http://www.bloomberg.com/news/2013-10-28/reagan-revolution-misses-tax-fiefdoms-flourishing-in-u-s-.html

Survey results of public pension administrators

http://www.ncpers.org/Files/%282013117%29%20NCPERS%20Public%20Retirement%20System%20Study%20Report%20-%20Final%20Public%20Version.pdf

From the overview: The National Conference on Public Employee Retirement Systems (NCPERS)undertook a comprehensive study exploring retirement practices of the public sector.  241 responses, 82% local governments and 18% state.   Study found the governments are continuing to respond in ways to keep the pensions sustainable.   The 41 page pdf is accessible at the link

Federal government shutdown costs billions

here's wishes for a speedy resolution to this issue.
http://www.fiercegovernment.com/story/shutdown-costs-economy-billions/2013-10-10?utm_medium=nl&utm_source=internal

State and Local governments taking too long to

get their financials ready.   Issues for muni bond investors who want timely information http://www.reuters.com/article/2013/10/08/municipals-reports-timing-idUSL1N0HY1J620131008

Vatican published annual report - a first

Here is the press release:  http://www.ior.va/Portals/0/Content/Media/PressReleases/Comunicato%20stampa_IOR_Rapporto%20Annuale%202012_ENG.pdf

The overall website is accessible from http://www.ior.va

A couple articles follows:

http://www.mondayvatican.com/vatican-finances/vatican-finances-the-ior-will-publish-its-balance-sheet-2


http://247wallst.com/banking-finance/2013/10/01/the-vatican-bank-annual-report-now-open-a-true-first/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=OCT022013A&utm_campaign=DailyNewsletter

Lesson in reckoning with obstacles as they occur

rather than "kicking the can" down the road.  http://www.thestreet.com/story/12059944/1/political-popular-obstacles-block-pension-changes.html

How to make a city great

This 44 page document (pictures included) approaches urbanization from a global perspective, and breaks down the discussion into three chapters, all of which have a role for accountants.   The three chapters: achieve smart growth, do more with less, and win support for change.   http://www.mckinsey.com/insights/urbanization/how_to_make_a_city_great?cid=other-eml-nsl-mip-mck-oth-1309

Do local governments have much control over pensions?

A Moody's report of 8,000 local governments found that 75% have centrally administered plans (cost-sharing plans).   Few school districts in particular were found to have independence in the pension area.  http://www.reuters.com/article/2013/09/09/usa-pensions-moodys-idUSL2N0H51JU20130909

Detroit defends right to bankruptcy

This article discusses a few of the issues relevant to the challenges that have been made to Detroit's right to bankruptcy.   The initial processes undertaken and a few dates for the next steps in the legal processes are described.   The case of those "for" and "against this are highlighted

http://www.bondbuyer.com/issues/122_174/detroit-defends-right-to-enter-chapter-9-1055354-1.html

Nonprofit accounting and reporting

Not a new resource, but new to me.   Nice coverage of material and financials.   Thanks to the Greater Washington Society of CPAs Educational Foundation for presenting this material and article by Elizabeth Hamilton Foley.  There are other good Nonprofit accounting materials by her as well from this particular link.

http://www.nonprofitaccountingbasics.org/reporting-operations/statement-financial-position

Exposure draft released of Green Book for GAO

First revision since 1999.   90 pages.  The Green Book is the concepts and principles of internal control which GAO defines as policies and procedures an organizations uses to achieve its objectives.
Created in 1983, this is the third run at this.....You have until Dec 20 to comment. http://www.gao.gov/assets/660/657383.pdf

Gas tax - who has the highest

This report shows the top ten highest US states in terms of gas tax.  http://abcnews.go.com/Business/top-10-states-highest-gasoline-taxes/story?id=20093917

State income taxes impacting populations

This article pertains to the migration of individuals to where a tax benefit can be achieved.   Summarize a Tax Foundation study, and details the jurisdictions with the highest and the lowest personal income tax.  Interesting that when those celebrities that do this speak up, a pattern that has been underway for awhile gets more attention.  http://www.accountingweb.com/article/how-state-income-taxes-may-be-redrawing-population-map/222315

AICPA video explaining GASB pension standards

Just 6 minutes in length, this video describes the changes that the state and local governments will be undergoing to achieve the improved transparency and accounting for public pension benefits.  http://www.aicpa.org/News/AICPATV/Pages/home.aspx?bctid=2591408790001&Ca=Government%7cProfessional+Issues&Type=VideoSubCat

Comparing across governments

Open governance projects.   Comparing the reporting across cities and states is a challenge as presented in the report of a study that looked across 260 California cities. Lack of standardization and the fact that not all reports use machine readable data are just part of the challenge.

 The article mentions this work in comparison to the transactions reporting approach of the UK.  http://www.theguardian.com/local-government-network/2013/aug/01/open-governance-projects-compare-council-finances

Projects undertaking tracking of government spending are at http://openspending.org/  and http://www.openlylocal.com/
These are ambitious projects.

Detroit's underfunding of pension funds less dire than presented

originally in the city's pending bankruptcy, according to this article http://www.freep.com/article/20130802/BUSINESS06/308020076/Detroit-pension-Orr-bankruptcy

This article shed some light as well. 
http://www.crainsdetroit.com/article/20130804/NEWS/308049961/detroit-ch-9-may-set-pension-precedent#

An introduction to government reporting

in the form of a 46 slide slidshare.   http://www.slideshare.net/parentebeardllc/how-to-read-and-interpret-municipal-and-governmental-audited-financial-statements

Audit report blasts city of Stockton, CA

Stockton had taken bankruptcy, but this report shows internal control issues that likely contributed to poor fiscal affairs.  http://www.recordnet.com/apps/pbcs.dll/article?AID=/20130801/A_NEWS/308010320

The writer of the article keeps a blog on Stockton City Hall activities http://blogs.esanjoaquin.com/stockton-city-hall-blog/ 

USDA paying farmers after death

The results of a recent GAO report that indicates subsidies being paid more than a year after death. http://www.latimes.com/business/money/la-fi-mo-usda-dead-people-20130729,0,3034245.post
Here is a link to the GAO report on improper payments by the USDA.
http://www.gao.gov/assets/660/655649.pdf

States and cities need to promise less

This article is discussing the potential of the borrowing and debt from promises made (pension and health care) and the challenges and warnings to various governments.   There is one quick-telling visual of the map of the U.S. with the pension gap highlighted in colors for states where this gap is greater than 50% of annual revenues.  http://www.economist.com/news/leaders/21582258-it-not-just-detroit-american-cities-and-states-must-promise-less-or-face-disaster

Making the 990 form reach its potential

This article is oriented to nonprofits who want to ensure that the Form 990 is prepared in a way that will meet the needs of various stakeholders.   Five recommendations are provided, with some good suggestions and reasoning.
http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2013/CorpTax/MakeForm990Work.jsp

One helpful item that is linked within the article that might be of interest is testimony from last year related to this area.   I am separately linking to that testimony which had suggestions, and a little bit of history of  the Form 990.  http://waysandmeans.house.gov/uploadedfiles/borenstein_testimony_7.25.pdf

Some future scenarios for Detroit

as per these educators  http://hbswk.hbs.edu/item/7313.html

Large U.S. municipal bankruptcies

are discussed in this article  http://247wallst.com/special-report/2013/07/19/the-largest-municipal-bankruptcies-in-u-s-history/

Detroit files for bankruptcy

Trying to stop 60 years of decline, Detroit is the largest American City to file for bankruptcy.   The governor's representative, Kevin Orr discusses the 15 months he has left in his 18 month term, to try to help Detroit.   The lawyer for the retirement systems see it as betrayal, as well as others who view it as a dark day.   Many citizens will watch this situation with interest.  http://www.freep.com/article/20130718/NEWS01/307180107/Detroit-files-Chapter-9-bankruptcy-amid-staggering-debts

Moody's affirms U.S. bond rating

Says this represents a move toward stability.   Go triple A....but don't get too confident.   http://www.reuters.com/article/2013/07/18/us-usa-ratings-moodys-idUSBRE96H1AC20130718

constituents provide input into GASB processes

is detailed in this article http://www.governing.com/blogs/view/gov-the-trouble-with-gasb.html

Gifts in kind valuation for nonprofits

and some of the related issues are addressed in this 2011 piece regarding some well-known charities  http://www.charitywatch.org/articles/valueinwonderland.html

Nonprofit governance tips

to ensure that unexpected issues do not arise.   15 useful policies outlined in this article. http://journalofaccountancy.com/News/20138217.htm

Nonprofits ripe for fraud?

See this article that discusses the necessity for internal controls in the mission driven NFP sector.   Doing good is great, but do so with open eyes to the realities of the world, so that you can continue to "do good".  http://journalofaccountancy.com/News/20138221.htm

GASB issues proposal for pension transition

to eliminate potential source of understatement  by governments in the transition for GASB 68.   Comments are being sought through 8/26  http://journalofaccountancy.com/News/20138266.htm

Issues with the way the U.S. Treasury

processes its consolidated financial statements.   The 33 page GAO report issued June 28, 2013 report indicates some of the concerns.   http://www.gao.gov/assets/660/655636.pdf

IRS and nerf balls

some improper payments   http://accounting.smartpros.com/x74908.xml

AICPA responding to single audit changes

And expressing the concerns http://blog.aicpa.org/2013/06/3-ways-the-new-coso-framework-may-affect-your-business.html

Some of the various changes are discussed here.
http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/NewsAndPublications/GAQCALERT/2013/Pages/GAQCAlertNo211.aspx

Materials related to the overhead myth

at this site  http://www.overheadmyth.com/?hq_e=el&hq_m=2137165&hq_l=3&hq_v=d8521fbc6e

Municipalities being scrutinized for cooking the books related to bonds

per this WSJ article.  This article generated many comments from readers related to issues of muni bond financing , culpability of players, and related matters...  http://online.wsj.com/article/SB10001424127887324659404578501241181682894.html?mod=dist_smartbrief

Americans trust local government

more than federal and state, according to a recent poll conducted by the National League of Cities.    http://americancityandcounty.com/citizen-engagement/americans-trust-local-governments-most-new-poll-finds

Almost an anniversary...new logo for GASB

the FAF is celebrating 40 years, so some changes are in store..... http://accounting.smartpros.com/x74779.xml

Revised GASB white paper

being updated as of April 2013 for all the revised standards that have ensued since it was written in 2006.  "What governmental accounting is -  and should be - different" is the name of the white paper    http://www.gasb.org/cs/BlobServer?blobkey=id&blobwhere=1175826684726&blobheader=application%2Fpdf&blobcol=urldata&blobtable=MungoBlobs

FASAB seeking comments on proposal

to ensure appropriate organizations are included in the Federal government reporting.   Comments are requested by July 3.  http://journalofaccountancy.com/News/20137719.htm

Iowa State auditor to be new chair at GASB

Robert Attemore, the outgoing chair who is retiring, mentions how his replacement has experience to help navigate some of the controversial work ahead.   Post employment benefits is one specific topic referenced.  http://journalofaccountancy.com/News/20137716.htm

SIngle audit thresholds

under potential change  http://www.journalofaccountancy.com/News/20137301.htm

Transparency in government reporting

The reporting during "Sunshine week" showed 247 transparency winners out of 1000 local governments whose websites were reviewed.    No states actually received awards for their transparency, although three states garnered the most awards.  http://www.governing.com/news/state/gt-awards-highlight-transparent-government-websites.html

The nonprofit Sunshine Review is the one to tabulate this information.   here is that website.  http://sunshinereview.org/core/

States where individuals are not saving as much

are highlighted in this article http://247wallst.com/2013/03/05/the-10-states-where-people-save-the-least/

Group of 20 leading nations

highlight the importance of comparability and transparent public sector financial reporting in Russia at meeting of central bank governors and finance ministers.    Emphasized the importance of country specific circumstance and impact of financial sector vulnerability on public debt.  http://www.publicfinanceinternational.org/news/2013/03/accounting-bodies-hail-g20-emphasis-on-public-sector-reporting/

A ticking clock for Detroit

as the State has declared a financial emergency situation.  This gives ten days to look for solutions,  prior to a state takeover of Michigan's biggest city.    A state takeover is preferable to the bankruptcy option, which if it occurred would make Detroit the largest municipal bankruptcy.   Michigan law enables this state takeover option.  http://www.businessweek.com/news/2013-03-04/michigan-governor-s-move-sets-detroit-takeover-in-motion

Rita Crundwell sentenced

for the Dixon fraud.   $53 million will get you almost 20 years.   http://www.cbsnews.com/crimesider/?keyword=rita+crundwell&tag=contentMain;contentBody

Moody's lowers Britain's bond rating

for first time from AAA http://www.guardian.co.uk/business/2013/feb/23/george-osborne-britain-aaa

Sequestration impact on each state

is detailed here by the Washington Post http://www.washingtonpost.com/wp-srv/special/politics/sequestration-state-impact/    You can use the draw down menu to find your state and the resultant impact.

The article discussing this is located at this link http://www.washingtonpost.com/business/white-house-releases-state-by-state-breakdown-of-sequesters-effects/2013/02/24/caeb71a0-7ec0-11e2-a350-49866afab584_story.html?wpisrc=al_comboPNE
This article may require you to register at the site.

McKinsey helps rethink infrastructure issues

And whoever knew that roads and bridges could be such an interesting topic? 

The video with Madelein Albright and other speakers is interesting as it is talking about infrastructure being looked at differently than mere government concern.   Climate change, and other issues show that some of our present actions may not be sustainable; the images will make you think about this in ways you may have taken for granted before.   McKinsey Consulting group is looking at this from a more systemic approach.    http://www.mckinsey.com/features/infrastructure   The role of politics, what has been tried that is not working and other factors are discussed.

http://www.mckinsey.com/features/infrastructure/judith_rodin   The video and transcript discuss challenges facing Asian cities where the demographics mean burgeoning populations in Asia in years to come. Also the challenge of the weak municipal governance, and absence of municipal funding authority. How interesting that a NFP foundation (Rockefeller Foundation) and for-profit consulting groups is assisting in this national and international governmental planning and accounting topic.

City of Houston implementing pension standard

and the bleak outcome on net assets from this.   http://www.chron.com/opinion/king/article/New-accounting-rules-put-city-s-net-assets-at-risk-4283476.php

State and local government

revenue sources....check out this report from the tax foundation.  http://taxfoundation.org/article/where-do-state-and-local-governments-get-their-revenue

States with a sales tax sting

This references work published by the Tax Foundation.   The perspective of this article is toward retirees.
http://blogs.marketwatch.com/encore/2013/02/12/states-where-sales-taxes-sting-retirees/

If you are interested in seeing a list of the state rates try http://taxfoundation.org/article/state-and-local-sales-tax-rates-2013

Also an article from that site...http://taxfoundation.org/article/new-state-and-local-sales-tax-data-tax-foundation

Detroit needs some cash

or the concern is that it could, in very short time be the largest U.S. municipal bankruptcy.   The options are described in this article.   http://www.nytimes.com/2013/02/08/opinion/detroit-sinks-with-belle-isle.html?_r=0

Please don't tax the CPA! (or other professional services)

 Hawaii,  New Mexico and South Dakota, who in their sales tax on professional services do not exempt the CPA are not the only states to be aware of in changing times.   Shifting from manufacturing to services is part of the culprit as this tax becomes more prevalent on services.   Notice in this advocacy article from the AICPA how it points out that states who had taxes in place eliminated them for complexity issues.   http://blog.aicpa.org/2013/02/tentacles-of-state-tax-on-professional-services-may-reach-cpas.html

Federal government lawsuit against Standard and Poors

trying to revamp the agency which is seen as flawed.   We need the bond rating agencies, but the conflict of interest inherent is troubling.
http://www.washingtonpost.com/business/economy/four-years-later-reform-of-rating-agencies-bogs-down/2013/02/06/20be38a4-7095-11e2-ac36-3d8d9dcaa2e2_story.html

This article from USA today used a sausage analogy that was somewhat creepy....if you like sausage that is.   http://www.usatoday.com/story/money/business/2013/02/05/justice-states-sue-sp/1892647/

Saying goodbye to Canadian pennies

Slowly but surely, the Canadian penny will be seen in circulation less and less.  Royal Canadian mint will stop distributing.  Even Google got in on the act to pay some homage to the cent.   http://news.nationalpost.com/2013/02/04/canadian-penny-last-day/

S&P lowers Illinois Bond rating

What again?  I thought this just happened back in August.   Are the citizens noticing this?   http://www.pionline.com/article/20130125/DAILYREG/130129916/pension-woes-drive-moody8217s-sp-to-lower-illinois8217-bond-ratings

No deal on sequester in sight

Also consider viewing the short video that has the planes in the backdrop of 1.8 billion......It is on the left side of the page. 
 http://www.washingtonpost.com/politics/deep-spending-cuts-are-likely-lawmakers-say-with-no-deal-on-sequester-in-sight/2013/01/29/286d4f94-6a1f-11e2-ada3-d86a4806d5ee_story.html

Citizen-Centric Financial Reporting award

AGA presented the city of Scottsdale, AZ with a Certificate of Excellence in Citizen-Centric Reporting for the third consecutive year.   Merely four pages in length but a snapshot of visuals to tell specific metrics related to the city.  Interesting section of comparables

http://www.scottsdaleaz.gov/Assets/Public+Website/finance/Archive/FY+2011-12/FY_2011-12_Annual_Report.pdf

2 BKD Nonprofit articles

The one article is related to Schedule K of the 990 form as a recent impetus for audit examinations....look out hospitals this year.  http://www.bkd.com/articles/2013/schedule-k-responses-become-focus-of-recent-irs-enforcement-examinations.htm

The second deals with PILOTs and an explanation of the balancing act for government's wanting tax revenue from the impact of non-profit entities.  http://www.bkd.com/articles/2013/balancing-the-interests-of-municipalities-and-nonprofits-through-pilots.htm

U.S. government 2012 audit

indicates another year without a clean audit opinion.  

http://www.fiercegovernment.com/story/federal-fiscal-house-not-order/2013-01-22?utm_medium=nl&utm_source=internal


http://www.govexec.com/management/2013/01/government-again-fails-get-its-financial-books-order/60744/

Pew report about underfunded city pensions and health care

 obligations.   Used 2009 data and was for 61 cities - result was 217 billion dollar gap.   http://www.pewstates.org/uploadedFiles/PCS_Assets/2013/Pew_city_pensions_report.pdf

Redundant inspections in the DOJ

This article details how the Office of Federal Detention Trustees and the U.S. Marshal's Office, both components of the Department of Justice had overlap in their inspections of jails and prisons.   http://www.fiercegovernment.com/story/doj-components-redundantly-inspected-dozens-same-jails-and-prisons/2013-01-14?utm_medium=nl&utm_source=internal

Federal government and the deficit

Immediate action is needed said 75% of those responded.   Also 54% of members of the AICPA surveyed in December 2012 said top economic priority should be to get the deficit under control.    This article discusses those survey results and also provides links to helpful materials in attempting to understand the problem.  http://www.journalofaccountancy.com/News/20137139-deficit.htm

GASB release Statement 69

GASB Statement No. 69, Government Combinations and Disposals of Government Operations will be available on the GASB website in February.  This article has some highlights.  http://www.journalofaccountancy.com/News/20137138

FASB trying to Clarify Fair Value Disclosure in

Nonpublic Entities.    Stakeholders had pointed out issues of inconsistency with 2011 amendment that had occurred. FASB intends to address as quickly as possible.   Comments are for a limited period of time as FASB seeks a responsive due diligence process.   http://journalofaccountancy.com/News/20137128.htm

FASAB Issues Standards on Asset Impairment

You will see standard SSFAS 44 at this link.   The standard is 72 pages in length and was released Jan 3, 2013.   It lets users see impairment as it occurs and the impact on the reporting entity.  http://www.fasab.gov/accounting-standards/authoritative-source-of-gaap/accounting-standards/fasab-handbook/

Difficulties in assessing government success

especially at the state level.   Complexity and commingling funds from other sources are part of the problem.  http://www.governing.com/columns/col-difficulties-of-measuring-government-success.html

States that recovered most and least from the

recession since the 5 year anniversary of the Great Recession.   http://247wallst.com/2013/01/03/the-states-which-recovered-most-and-least-from-the-recession/