Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES CONTRACT WITH CIUNI & PANICHI, INC. FOR THE PREPARATION OF THE CITY'S 2019 ANNUAL FINANCIAL STATEMENTS.
Brief Description: This is a contract with an accounting firm to assist staff in the preparation of the 2019 annual financial statements.
Body
Legislative History
None
Purpose & Explanation
The City's annual financial statements are required to be reported on an accrual basis. This is a contract with an accounting firm to assist staff in preparation of those statements and related notes to the financial statements. The City has always used this service as it is deemed the most efficient approach in preparing our statements for audit.
Our 2019 statements will include Governmental Accounting Standards Board (GASB) Nos. 68 and 75 which are the reporting requirement for pensions. In summary, local governments are required to report their share of the net pension liability on the balance sheet. This requires additional calculations and disclosures in our statements. In addition, we are required to report Other Post-Employment Benefits (OPEB) which includes reporting our share of the unfunded liability for retiree health care.
New for 2019 implementation are GASB 83 - Certain Asset Retirement Obligations (AROs)
Examples of AROs are the wells at the water plant as well as the new brine well. We need to determine if there is a legally enforceable liability associated with the retirement of the asset and report the value of that liability.
Also new for 2019 is GASB 84 - Fiduciary Activities. This requires evaluation of our fiduciary funds to determine proper reporting and disclosures under the new standard. Our current fiduciary funds are those in which the City holds assets for others but we do not exercise control such as the library levy proceeds or the school district's share of the income tax.
The estimated costs are as follows:
Financial statement preparation $28,400
GA...
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