Understanding Municipal Finance and Budgeting

For Business and Government Professionals

Also an ideal overview and refresher for Municipal Finance Officers and CPA “Yellow Book” Practitioners

*A two-day workshop focusing on:*
Understanding the new municipal financial statements How to lower bond rates Financial Ratios for Revenue, Expenditure, Debt and Operations — Indicators and Warning Trends Municipal budgeting cycle and process Capital Budgeting . . . Calculation, Presentation and Approval How to prepare a budget for your area of responsibility New accountability requirements for local governments Using the Comprehensive Annual Financial Report (CAFR) The newly required Management’s Discussion and Analysis Report and required supplemental information Designed especially for: Municipal Employees, Accountants and anyone who needs to clearly understand Municipal Finance and Budgeting
Seminar Agenda
Part 1 — The Basics Definitions Accounting Measurements Fund Accounting Impact of State and Local Laws and Regulations
Part 2 — Importance of the Budget in Government
Understanding Budget Limitations	Legal Limitations State and Local Laws Constitutional Amendments Limitations on Taxing Power
Understanding the Budgetary Process	Establishing Goals to Meet Community Needs, Priorities, Challenges and Opportunities Developing Approaches to Achieve Goals Developing Financial Policies Developing Programmatic, Operating and Capital Policies and Plans Developing Management Strategies Developing and Evaluating Financial Options Making Choices Necessary to Adopt a Budget Evaluating Performance and Making Adjustments Input From Citizenry, Government Agencies, Elected Officials Case study — Example of Budget Preparation for a Governmental Unit
Understanding Capital Budgeting	Special Assessments Grants, Contributions, or Other Non-exchange Transactions Donated Capital Assets Special Elections Bond Ratings Legal Limitations
Part 3 — External Financial Reporting
Understanding Who Makes the Rules	Governmental Accounting Standards Board (GASB) Generally Accepted Accounting Principles (GAAP) Financial Accounting Standards Board (FASB)
Understanding Why the Rules Have Changed	GASB Statement 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments Emphasis on Accountability Emphasis on Primary Government Expansion of Financial Statements
Understanding Information Required in Basic Financial Statements (BFS)	Government-Wide Financial Statements Fund Financial Statements Management Discussion and Analysis (MD&A) Required Supplementary Information (RSI) Other Than MD&A
Understanding the Financial Reporting Entity	Primary Governments Component Units
Fund Financial Statements	Major Funds Governmental Funds Proprietary Funds Fiduciary Funds
Government-Wide Financial Statements — What They Are and What They Cover	Focus on Activities Relationship to Fund Statements Converting Capital and Long-term Debt Consolidations and Eliminations Statement of Net Assets and Modified Approach to Infrastructure Statement of Activities and Net Cost Format
Notes to the Financial Statements	Purpose of Notes Significant Accounting Policies Cash and Investments Capital Assets and Long-term Liabilities Claims and Judgments Pensions Internal Activity
Required Supplementary Information	Understanding the Requirements for Management’s Discussion and Analysis Required Budget Reporting Original Budget Final Budget Actual Budget
Understanding the Comprehensive Annual Financial Report (CAFR)	Introductory Section Financial Section Statistical Section
Part 4 — The Audit Process Internal Control and the Internal Audit Function
Laws, Rules, and Regulations	American Institute of Certified Public Accountants (AICPA) Generally Accepted Auditing Standards (GAAS) Audits of State and Local Governmental Units (ASLGU) Statements on Auditing Standards (SAS) General Accounting Office (GAO) and Generally Accepted Government Auditing Standards (GAGAS)
Internal Control and Prevention of Fraud
Understanding the Audit	External Auditors and the Audit Process Understanding the Audit Report; Unqualified; Other; Report on Internal Control
Part 5 — Evaluating the Financial Condition of Governments
Determining the Effectiveness of Governmental Units	Evaluation of Governmental Units Bond Rating Process: How to Get and Keep a Good Bond Rating Performance Measurements in Governmental Units Financial Indicators Database— Government Finance Officers Association (GFOA) Evaluating Financial Condition— International City/County Mgmt. Assn. (ICMA) Financial Trend Monitoring System (FTMS) Overview
Metrics to measure performance:	Revenue Indicators, Formulas and Warning Trends: Revenue Per Capita; Restricted Revenues; Elastic Revenues; One-time Revenues; Tax Revenues; Uncollected Property Taxes; Revenue Shortfalls or Surplusses Expenditure Indicators, Formulas and Warning Trends: Expenditures Per Capita; Employees Per Capita; Fixed Costs; Fringe Benefits Operating Position Indicators and Warning Trends: Operating Deficit or Surplus; Enterprise Working Capital; Unreserved Fund Balances; Liquidity Debt Indicators and Warning Trends: Current Liabilities; Long-term Debt; Debt Service Side-by-side Comparison of Financial Ratios to Other Cities or Counties
Real-Life Case Study — City of Orlando vs. City of San Francisco	Revenue Indicators Expenditure Indicators Operating Position Indicators Debt Indicators Summary: What the Metrics Tell You
CPE Credits
This seminar is recommended for 16 hours of CPE including 16 hours of A&A credit. The National Center for Continuing Education is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Visit the NASBA website at www.nasba.org. This seminar is approved in many states GAO Yellow Book requirements (Yellow Book course compliance may be subject to the determination of an external quality control review board). Contact NCCE for information about your state.
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Who Should Attend?
This seminar is a must for any attorney, government or business professional who needs to gain a clear understanding of municipal finance and budgeting, including: City and County Commissioners City Managers, Department Heads/Staff Municipal Administrators and staff City Attorney/Legal Department Economic Development Profesionals Growth Management Professionals Purchasing Directors and their staff Municipal Planners Engineering Staff and Technicians HR, Training and Public Relations Government Consultants Finance and Accounting Department Staff CPAs and Municipal Finance Officers GASB “Yellow Book” Practitioners Anyone who would like to clearly understand the basic principles of municipal finance, municipal budgeting and how to gauge the financial health of a municipal entity should plan to attend this practical two-day workshop
Instructor
Pete Rose, CPA, MBA, CGFM
In-house Presentations ...
If you have a group of 12 or more employees who need to understand Municipal Finance, NCCE’s customized training may be the cost-effective solution for your organization. Bring this course in-house and provide your staff with the critical financial know-how to immediately add value to your organization. Courses can be tailored to a 4-, 8-, 12- or 16-hour presentation, with the comprehensive case study geared to a featured municipal entity you select. For more information or to schedule a custom in-house program, email NCCE at contact@nccetraining.com or telephone 800-635-9615. Back to top
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