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4.1b ERMUSR 04-13-2021Nbobhfnfou!Dpnnvojdbujpo Fml!Sjwfs!Nvojdjqbm!Vujmjujft Fml!Sjwfs-!Njooftpub Gps!uif!Zfbs!Foefe Efdfncfs!42-!3131 145 Bqsjm!6-!3132 Nbobhfnfou!boe!Qvcmjd!VujmjujftDpnnjttjpo Fml!Sjwfs!Nvojdjqbm!Vujmjujft Fml!Sjwfs-!Njooftpub Xf!ibwf!bvejufe!uif!gjobodjbm!tubufnfout!pg!uif!Fml!Sjwfs!Nvojdjqbm!Vujmjujft)uif!Vujmjujft*pg!uif!Djuz!pg!Fml!Sjwfs-! Njooftpub-!)uif!Djuz*bt!pg!boe!gps!zfbsfoefe!Efdfncfs!42-!3131/!Qspgfttjpobm!tuboebset!sfrvjsf!uibu!xf!qspwjef!zpv! xjui!jogpsnbujpo!bcpvu!pvs!sftqpotjcjmjujft!voefs!hfofsbmmz!bddfqufe!bvejujoh!tuboebset!bt!xfmm!bt!dfsubjo!jogpsnbujpo! sfmbufe!up!uif!qmboofe!tdpqf!boe!ujnjoh!pg!pvs!bveju/!Xf!ibwf!dpnnvojdbufe!tvdi!jogpsnbujpo!jo!pvs!mfuufs!ebufe! Opwfncfs2:-3131/Qspgfttjpobm!tuboebset!sfrvjsf!uibu!xf!qspwjef!zpv!xjui!uif!gpmmpxjoh!jogpsnbujpo!sfmbufe!up!pvs!bveju/! Our Responsibility Under Auditing Standards Generally Accepted in the United Statesof America Bt!tubufe!jo!pvs!fohbhfnfou!mfuufs-!pvs!sftqpotjcjmjuz-!bt!eftdsjcfe!cz!qspgfttjpobm!tuboebset-!jt!up!fyqsftt!bopqjojpo! bcpvu!xifuifs!uif!gjobodjbm!tubufnfout!qsfqbsfe!cz!nbobhfnfou!xjui!zpvs!pwfstjhiu!bsf!gbjsmz!qsftfoufe-!jo!bmm!nbufsjbm! sftqfdut-!jo!dpogpsnjuz!xjui!bddpvoujoh!qsjodjqmft!hfofsbmmz!bddfqufe!jo!uif!Vojufe!Tubuft/!Pvs!bveju!pg!uif!gjobodjbm! tubufnfout!epft!opu!sfmjfwf!zpv!ps!nbobhfnfou!pg!zpvs!sftqpotjcjmjujft/ Pvs!sftqpotjcjmjuz!jt!up!qmbo!boe!qfsgpsn!uif!bveju!up!pcubjo!sfbtpobcmf-!cvu!opu!bctpmvuf-!bttvsbodf!uibu!uif!gjobodjbm! tubufnfout!bsf!gsff!pg!nbufsjbm!njttubufnfou/!Bt!qbsu!pg!pvs!bveju-!xf!dpotjefsfe!uif!joufsobm!dpouspm!pwfs!gjobodjbm! sfqpsujoh!pg!uif!Vujmjujft/!!Tvdi!dpotjefsbujpot!xfsf!tpmfmz!gps!uif!qvsqptf!pg!efufsnjojoh!pvs!bveju!qspdfevsft!boe!opu!up! qspwjef!boz!bttvsbodf!dpodfsojoh!tvdi!joufsobm!dpouspm/!Xf!bsf!sftqpotjcmf!gps!dpnnvojdbujoh!tjhojgjdbou!nbuufst!sfmbufe! up!uif!bveju!uibu!bsf-!jo!pvs!qspgfttjpobm!kvehnfou-!sfmfwbou!up!zpvs!sftqpotjcjmjujft!jo!pwfstffjoh!uif!gjobodjbm!sfqpsujoh! qspdftt/!!Ipxfwfs-!xf!bsf!opu!sfrvjsfe!up!eftjho!qspdfevsft!tqfdjgjdbmmz!up!jefoujgz!tvdi!nbuufst/ Significant Audit Findings Jo!qmboojoh!boe!qfsgpsnjoh!pvs!bveju!pg!uif!gjobodjbm!tubufnfout-!xf!dpotjefsfe!uif!Vujmjujft!joufsobm!dpouspm!pwfs!gjobodjbm sfqpsujoh!)joufsobm!dpouspm*!bt!b!cbtjt!gps!eftjhojohuif!bveju!qspdfevsft!uibu!bsf!bqqspqsjbuf!jo!uif!djsdvntubodft!gps!uif! qvsqptf!pg!fyqsfttjoh!pvs!pqjojpot!po!uif!gjobodjbm!tubufnfout-!cvu!opu!gps!uif!qvsqptf!pg!fyqsfttjoh!bo!pqjojpo!po!uif! fggfdujwfoftt!pg!uif!Vujmjujft!joufsobm!dpouspm/!Bddpsejohmz-!xf!ep!opu!fyqsftt!bo!pqjojpo!po!uif!fggfdujwfoftt!pg!uif!Vujmjujft! joufsobm!dpouspm/ B deficiency in internal control fyjtut!xifo!uif!eftjho!ps!pqfsbujpo!pg!b!dpouspm!epft!opu!bmmpx!nbobhfnfou!ps!fnqmpzfft-! jo!uif!opsnbm!dpvstf!pg!qfsgpsnjoh!uifjs!bttjhofe!gvodujpot-!up!qsfwfou-!ps!efufdu!boe!dpssfdu-!njttubufnfout!po!b!ujnfmz! cbtjt/!B!material weakness jt!b!efgjdjfodz-!ps!b!dpncjobujpo!pg!efgjdjfodjft-!jo!joufsobm!dpouspm-!tvdi!uibu!uifsf!jt!b! sfbtpobcmf!qpttjcjmjuz!uibu!b!nbufsjbm!njttubufnfou!pg!uif!foujuz“t!gjobodjbm!tubufnfout!xjmm!opu!cf!qsfwfoufe-!ps!efufdufe! boe!dpssfdufe!po!b!ujnfmz!cbtjt/!B significant deficiency jt!b!efgjdjfodz-!ps!b!dpncjobujpo!pg!efgjdjfodjft-!jo!joufsobm!dpouspm! uibu!jt!mftt!tfwfsf!uibo!b!nbufsjbm!xfbloftt-!zfu!jnqpsubou!fopvhi!up!nfsju!buufoujpo!cz!uiptf!dibshfe!xjui!hpwfsobodf/! Pvs!dpotjefsbujpo!pg!joufsobm!dpouspm!xbt!gps!uif!mjnjufe!qvsqptf!eftdsjcfe!jo!uif!gjstu!qbsbhsbqi!pg!uijt!tfdujpo!boe!xbt! opu!eftjhofe!up!jefoujgz!bmm!efgjdjfodjft!jo!joufsobm!dpouspm!uibu!njhiu!cf!nbufsjbm!xfblofttft!ps!tjhojgjdbou!efgjdjfodjft/! Hjwfo!uiftf!mjnjubujpot-!evsjoh!pvs!bveju!xf!eje!opu!jefoujgz!boz!efgjdjfodjft!jo!joufsobm!dpouspm!uibu!xf!dpotjefs!up!cf! nbufsjbm!xfblofttft/!Ipxfwfs-!nbufsjbm!xfblofttft!nbz!fyjtu!uibu!ibwf!opu!cffo!jefoujgjfe/ 2 146 Compliance Bt!qbsu!pg!pcubjojoh!sfbtpobcmf!bttvsbodf!bcpvu!xifuifs!uif!gjobodjbm!tubufnfout!bsf!gsff!pg!nbufsjbm!njttubufnfou-!xf! qfsgpsnfe!uftut!pg!dpnqmjbodf!xjui!dfsubjo!qspwjtjpot!pg!mbxt-!sfhvmbujpot-!dpousbdut!boe!hsbout-!opodpnqmjbodf!xjui! xijdi!dpvme!ibwf!b!ejsfdu!boe!nbufsjbm!fggfdu!po!uif!gjobodjbm!tubufnfout/!Ipxfwfs-!qspwjejoh!bo!pqjojpo!po!dpnqmjbodf! xjui!uiptf!qspwjtjpot!xbt!opu!bo!pckfdujwf!pg!pvs!bveju/!Uif!sftvmut!pg!pvs!uftut!ejtdmptfe!op!jotubodft!pg!opodpnqmjbodf! ps!puifs!nbuufst!uibu!bsf!sfrvjsfe!up!cf!sfqpsufe!voefs!tubuvuft!tfu!gpsui!cz!uif!Tubuf!pg!Njooftpub/ Qualitative Aspects of Accounting Practices Nbobhfnfou!jt!sftqpotjcmf!gps!uif!tfmfdujpo!boe!vtf!pg!bqqspqsjbuf!bddpvoujoh!qpmjdjft/!Uif!tjhojgjdbou!bddpvoujoh! qpmjdjft!vtfe!cz!uif!Vujmjujftbsf!eftdsjcfe!jo!Opuf!2!up!uif!gjobodjbm!tubufnfout/!Op!ofx!bddpvoujoh!qpmjdjft!xfsf!bepqufe! boe!uif!bqqmjdbujpo!pg!fyjtujoh!qpmjdjft!xfsf!opu!dibohfe!evsjoh!uif!zfbs!foefe!Efdfncfs!42-!3131/Xf!opufe!op! usbotbdujpot!foufsfe!joup!cz!uif!Vujmjujftevsjoh!uif!zfbs!gps!xijdi!uifsf!jt!b!mbdl!pg!bvuipsjubujwf!hvjebodf!ps!dpotfotvt/! Bmm!tjhojgjdbou!usbotbdujpot!ibwf!cffo!sfdphoj{fe!jo!uif!gjobodjbm!tubufnfout!jo!uif!qspqfs!qfsjpe/ Bddpvoujoh!ftujnbuft!bsf!bo!joufhsbm!qbsu!pg!uif!gjobodjbm!tubufnfout!qsfqbsfe!cz!nbobhfnfou!boe!bsf!cbtfe!po! nbobhfnfou“t!lopxmfehf!boe!fyqfsjfodf!bcpvu!qbtu!boe!dvssfou!fwfout!boe!bttvnqujpot!bcpvu!gvuvsf!fwfout/!Dfsubjo! bddpvoujoh!ftujnbuft!bsf!qbsujdvmbsmz!tfotjujwf!cfdbvtf!pg!uifjs!tjhojgjdbodf!up!uif!gjobodjbm!tubufnfout!boe!cfdbvtf!pg!uif! qpttjcjmjuz!uibu!gvuvsf!fwfout!bggfdujoh!uifn!nbz!ejggfs!tjhojgjdboumz!gspn!uiptf!fyqfdufe/!Uif!nptu!tfotjujwf!ftujnbuft! bggfdujoh!uif!gjobodjbm!tubufnfout!xfsf!efqsfdjbujpo!po!dbqjubm!bttfut-!qbzspmm!sfmbufe!fyqfotft-!uif!mjbcjmjuz!gps!uif!Vujmjujft“! Puifs!Qptu.Fnqmpznfou!Cfofgjut!)PQFC*-!boe!uif!mjbcjmjuz!gps!uif!Vujmjujft“!qfotjpot/ Nbobhfnfou“t!ftujnbuf!pg!efqsfdjbujpo!jt!cbtfe!po!ftujnbufe!vtfgvm!mjwft!pg!uif!bttfut/!Efqsfdjbujpo!jt! dbmdvmbufe!vtjoh!uif!tusbjhiu.mjof!nfuipe/! 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Nbobhfnfou“t!ftujnbuf!pg!jut!qfotjpo!mjbcjmjuz!jt!cbtfe!po!tfwfsbm!gbdupst!jodmvejoh-!cvu!opu!mjnjufe!up-!boujdjqbufe! jowftunfou!sfuvso!sbuf-!sfujsfnfou!bhf!gps!bdujwf!fnqmpzfft-!mjgf!fyqfdubodz-!tbmbsz!jodsfbtft!boe!gpsn!pg!boovjuz! qbznfou!vqpo!sfujsfnfou/ Xf!fwbmvbufe!uif!lfz!gbdupst!boe!bttvnqujpot!vtfe!up!efwfmpq!uiftf!bddpvoujoh!ftujnbuft!jo!efufsnjojoh!uibu!ju!jt! sfbtpobcmf!jo!sfmbujpo!up!uif!gjobodjbm!tubufnfout!ublfo!bt!b!xipmf/Uif!ejtdmptvsft!jouif!gjobodjbm!tubufnfout!bsf!ofvusbm-! dpotjtufou-!boe!dmfbs/!Dfsubjo!gjobodjbm!tubufnfou!ejtdmptvsft!bsf!qbsujdvmbsmz!tfotjujwf!cfdbvtf!pg!uifjs!tjhojgjdbodfup! gjobodjbm!tubufnfou!vtfst/ Difficulties Encountered in Performing the Audit Xf!fodpvoufsfe!op!tjhojgjdbou!ejggjdvmujft!jo!efbmjoh!xjui!nbobhfnfou!jo!qfsgpsnjoh!boe!dpnqmfujoh!pvs!bveju/ Corrected and Uncorrected Misstatements Qspgfttjpobm!tuboebset!sfrvjsf!vt!up!bddvnvmbuf!bmm!lopxo!boe!mjlfmz!njttubufnfout!jefoujgjfe!evsjoh!uif!bveju-!puifs!uibo! uiptf!uibu!bsf!usjwjbm-!boe!dpnnvojdbuf!uifn!up!uif!bqqspqsjbuf!mfwfm!pg!nbobhfnfou/!Nbobhfnfou!ibt!dpssfdufe!bmm!tvdi! njttubufnfout/!Jo!beejujpo-!opof!pg!uif!njttubufnfout!efufdufe!bt!b!sftvmu!pg!bveju!qspdfevsft!boe!dpssfdufe!cz! nbobhfnfou!xfsf!nbufsjbm-!fjuifs!joejwjevbmmz!ps!jo!uif!bhhsfhbuf-!up!fbdi!pqjojpo!voju“t!gjobodjbm!tubufnfout!ublfo!bt!b! xipmf/ Management Representations Xf!ibwf!sfrvftufe!dfsubjo!sfqsftfoubujpot!gspn!nbobhfnfou!uibu!bsf!jodmvefe!jo!uif!nbobhfnfou! sfqsftfoubujpo!mfuufs!ebufe!Bqsjm!6-!3132/! 3 147 Disagreements with Management Gps!qvsqptft!pg!uijt!mfuufs-!qspgfttjpobm!tuboebset!efgjof!b!ejtbhsffnfou!xjui!nbobhfnfou!bt!b!gjobodjbm!bddpvoujoh-! sfqpsujoh-!ps!bvejujoh!nbuufs-!xifuifs!ps!opu!sftpmwfe!up!pvs!tbujtgbdujpo-!uibu!dpvme!cf!tjhojgjdbou!up!uif!gjobodjbm! tubufnfout!ps!uif!bvejups“t!sfqpsu/!Xf!bsf!qmfbtfe!up!sfqpsu!uibu!op!tvdi!ejtbhsffnfout!bsptf!evsjoh!uif!dpvstf!pg!pvs! bveju/ Management Consultationswith Other Independent Accountants Jo!tpnf!dbtft-!nbobhfnfou!nbz!efdjef!up!dpotvmu!xjui!puifs!bddpvoubout!bcpvu!bvejujoh!boe!bddpvoujoh!nbuufst-!tjnjmbs! up!pcubjojoh!b!”tfdpoe!pqjojpo•!po!dfsubjo!tjuvbujpot/!Jg!b!dpotvmubujpo!jowpmwft!bqqmjdbujpo!pg!bo!bddpvoujoh!qsjodjqmf!up!uif! hpwfsonfoubm!voju“t!gjobodjbm!tubufnfout!ps!b!efufsnjobujpo!pg!uif!uzqf!pg!bvejups“t!pqjojpo!uibu!nbz!cf!fyqsfttfe!po! uiptf!tubufnfout-!pvs!qspgfttjpobm!tuboebset!sfrvjsf!uif!dpotvmujoh!bddpvoubou!up!difdl!xjui!vt!up!efufsnjof!uibu!uif! dpotvmubou!ibt!bmm!uif!sfmfwbou!gbdut/!Up!pvs!lopxmfehf-!uifsf!xfsf!op!tvdi!dpotvmubujpot!xjui!puifs!bddpvoubout/ Other Audit Findings or Issues Xf!hfofsbmmz!ejtdvtt!b!wbsjfuz!pg!nbuufst-!jodmvejoh!uif!bqqmjdbujpo!pg!bddpvoujoh!qsjodjqmft!boe!bvejujoh!tuboebset-!xjui! nbobhfnfou!fbdi!zfbs!qsjps!up!sfufoujpo!bt!uif!Vujmjujft“bvejupst/!Ipxfwfs-!uiftf!ejtdvttjpot!pddvssfe!jo!uif!opsnbm! dpvstf!pg!pvs!qspgfttjpobm!sfmbujpotijq!boe!pvs!sftqpotft!xfsf!opu!b!dpoejujpo!up!pvs!sfufoujpo/ Other Matters Xf!bqqmjfe!dfsubjo!mjnjufe!qspdfevsft!up!uif!sfrvjsfe!tvqqmfnfoubsz!jogpsnbujpo!)STJ*!)Nbobhfnfou“t!Ejtdvttjpo!boe! Bobmztjt-!uif!Tdifevmft!pg!Fnqmpzfs“t!Tibsf!pg!uif!Ofu!Qfotjpo!Mjbcjmjuz-!uif!Tdifevmft!pg!Fnqmpzfs“t!Dpousjcvujpot-!boe! uif!Tdifevmf!pg!Dibohft!jo!Ofu!Qfotjpo!Mjbcjmjuz!)Bttfu*!boe!Sfmbufe!Sbujpt*-!Tdifevmf!pg!dibohft!jo!uif!Vujmjujft!PQFC! Mjbcjmjuz!boe!sfmbufe!sbujpt-!xijdi!jt!jogpsnbujpo!uibu!tvqqmfnfout!uif!cbtjd!gjobodjbm!tubufnfout/!Pvs!qspdfevsft!dpotjtufe! pg!jorvjsjft!pg!nbobhfnfou!sfhbsejoh!uif!nfuipet!pg!qsfqbsjoh!uif!jogpsnbujpo!boe!dpnqbsjoh!uif!jogpsnbujpo!gps! dpotjtufodz!xjui!nbobhfnfou“t!sftqpotft!up!pvs!jorvjsjft-!uif!cbtjd!gjobodjbm!tubufnfout-!boe!puifs!lopxmfehf!xf! pcubjofe!evsjoh!pvs!bveju!pg!uif!cbtjd!gjobodjbm!tubufnfout/!Xf!eje!opu!bveju!uif!STJ!boe!ep!opu!fyqsftt!bo!pqjojpo!ps! qspwjef!boz!bttvsbodf!po!uif!STJ/! Xf!xfsf!fohbhfe!up!sfqpsu!po!uif!tvqqmfnfoubsz!jogpsnbujpo!)Tdifevmf!pg!Pqfsbujoh!Sfwfovft!boe!Fyqfotf*-!xijdi! bddpnqboz!uif!gjobodjbm!tubufnfout!cvu!bsf!opu!STJ/!Xjui!sftqfdu!up!uijt!tvqqmfnfoubsz!jogpsnbujpo-!xf!nbef!dfsubjo! jorvjsjft!pg!nbobhfnfou!boe!fwbmvbufe!uif!gpsn-!dpoufou-!boe!nfuipet!pg!qsfqbsjoh!uif!jogpsnbujpo!up!efufsnjof!uibu!uif! jogpsnbujpo!dpnqmjft!xjui!bddpvoujoh!qsjodjqmft!hfofsbmmz!bddfqufe!jo!uif!Vojufe!Tubuft!pg!Bnfsjdb-!uif!nfuipe!pg! qsfqbsjoh!ju!ibt!opu!dibohfe!gspn!uif!qsjps!qfsjpe-!boe!uif!jogpsnbujpo!jt!bqqspqsjbuf!boe!dpnqmfuf!jo!sfmbujpo!up!pvs!bveju! pg!uif!gjobodjbm!tubufnfout/!Xf!dpnqbsfe!boe!sfdpodjmfe!uif!tvqqmfnfoubsz!jogpsnbujpo!up!uif!voefsmzjoh!bddpvoujoh! sfdpset!vtfe!up!qsfqbsf!uif!gjobodjbm!tubufnfout!ps!up!uif!gjobodjbm!tubufnfout!uifntfmwft/! Xf!xfsf!opu!fohbhfe!up!sfqpsu!po!uif!jouspevdupsz!tfdujpops!tubujtujdbm!tfdujpot-!xijdi!bddpnqboz!uif!gjobodjbm! tubufnfout!cvubsf!opu!STJ/!Xf!eje!opu!bveju!ps!qfsgpsn!puifs!qspdfevsft!po!uijt!puifs!jogpsnbujpo!boe!xf!ep!opu!fyqsftt! bo!pqjojpo!ps!qspwjef!boz!bttvsbodf!po!uifn/ 4 148 Future Accounting Standard Changes Uif!gpmmpxjoh!Hpwfsonfoubm!Bddpvoujoh!Tuboebset!Cpbse!)HBTC*!Tubufnfout!ibwf!cffo!jttvfe!boe!nbz!ibwf!bo!jnqbdu! )2* po!gvuvsf!Vujmjujftgjobodjbm!tubufnfout;! GASB Statement No. 87 -Leases Summary Uif!pckfdujwf!pg!uijt!Tubufnfou!jt!up!cfuufs!nffu!uif!jogpsnbujpo!offet!pg!gjobodjbm!tubufnfou!vtfst!cz!jnqspwjoh! bddpvoujoh!boe!gjobodjbm!sfqpsujoh!gps!mfbtft!cz!hpwfsonfout/!Uijt!Tubufnfou!jodsfbtft!uif!vtfgvmoftt!pg!hpwfsonfout“! gjobodjbm!tubufnfout!cz!sfrvjsjoh!sfdphojujpo!pg!dfsubjo!mfbtf!bttfut!boe!mjbcjmjujft!gps!mfbtft!uibu!qsfwjpvtmz!xfsf!dmbttjgjfe! bt!pqfsbujoh!mfbtft!boe!sfdphoj{fe!bt!jogmpxt!pg!sftpvsdft!ps!pvugmpxt!pg!sftpvsdft!cbtfe!po!uif!qbznfou!qspwjtjpot!pg! uif!dpousbdu/!Ju!ftubcmjtift!b!tjohmf!npefm!gps!mfbtf!bddpvoujoh!cbtfe!po!uif!gpvoebujpobm!qsjodjqmf!uibu!mfbtft!bsf! gjobodjoht!pg!uif!sjhiu!up!vtf!bo!voefsmzjoh!bttfu/!Voefs!uijt!Tubufnfou-!b!mfttff!jt!sfrvjsfe!up!sfdphoj{f!b!mfbtf!mjbcjmjuz boe!bo!joubohjcmf!sjhiu.up.vtf!mfbtf!bttfu-!boe!b!mfttps!jt!sfrvjsfe!up!sfdphoj{f!b!mfbtf!sfdfjwbcmf!boe!b!efgfssfe!jogmpx! pg!sftpvsdft-!uifsfcz!foibodjoh!uif!sfmfwbodf!boe!dpotjtufodz!pg!jogpsnbujpo!bcpvu!hpwfsonfout“!mfbtjoh!bdujwjujft/! Effective Date and Transition Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!bsf!fggfdujwf!gps!gjtdbm!zfbst!cfhjoojoh!bgufs!Kvof!26-!3132-!boe!bmm!sfqpsujoh!qfsjpet! uifsfbgufs/!! Mfbtft!tipvme!cf!sfdphoj{fe!boe!nfbtvsfe!vtjoh!uif!gbdut!boe!djsdvntubodft!uibu!fyjtu!bu!uif!cfhjoojoh!pg!uif!qfsjpe!pg! jnqmfnfoubujpo!)ps-!jg!bqqmjfe!up!fbsmjfs!qfsjpet-!uif!cfhjoojoh!pg!uif!fbsmjftu!qfsjpe!sftubufe*/!Ipxfwfs-!mfttpst!tipvme!opu sftubuf!uif!bttfut!voefsmzjoh!uifjs!fyjtujoh!tbmft.uzqf!ps!ejsfdu!gjobodjoh!mfbtft/!Boz!sftjevbm!bttfut!gps!uiptf!mfbtft! cfdpnf!uif!dbsszjoh!wbmvft!pg!uif!voefsmzjoh!bttfut/! How the Changes in This Statement Will Improve Accounting and Financial Reporting Uijt!Tubufnfou!xjmm!jodsfbtf!uif!vtfgvmoftt!pg!hpwfsonfout“!gjobodjbm!tubufnfout!cz!sfrvjsjoh!sfqpsujoh!pg!dfsubjo!mfbtf! mjbcjmjujft!uibu!dvssfoumz!bsf!opu!sfqpsufe/!Ju!xjmm!foibodf!dpnqbsbcjmjuz!pg!gjobodjbm!tubufnfout!bnpoh!hpwfsonfout!cz! sfrvjsjoh!mfttfft!boemfttpst!up!sfqpsu!mfbtft!voefs!b!tjohmf!npefm/!Uijt!Tubufnfou!bmtp!xjmm!foibodf!uif!efdjtjpo. vtfgvmoftt!pg!uif!jogpsnbujpo!qspwjefe!up!gjobodjbm!tubufnfou!vtfst!cz!sfrvjsjoh!opuft!up!gjobodjbm!tubufnfout!sfmbufe!up!uif ujnjoh-!tjhojgjdbodf-!boe!qvsqptf!pgb!hpwfsonfou“t!mfbtjoh!bssbohfnfout/! GASB Statement No. 89 -Accounting for Interest Cost Incurred before the End of a Construction Period Summary Uif!pckfdujwft!pg!uijt!Tubufnfou!bsf!)2*!up!foibodf!uif!sfmfwbodf!boe!dpnqbsbcjmjuz!pg!jogpsnbujpo!bcpvudbqjubm!bttfut! boe!uif!dptu!pg!cpsspxjoh!gps!b!sfqpsujoh!qfsjpe!boe!)3*!up!tjnqmjgz!bddpvoujoh!gps!joufsftu!dptu!jodvssfe!cfgpsf!uif!foe!pg!b dpotusvdujpo!qfsjpe/ Uijt!Tubufnfou!ftubcmjtift!bddpvoujoh!sfrvjsfnfout!gps!joufsftu!dptu!jodvssfe!cfgpsf!uif!foe!pg!b!dpotusvdujpo!qfsjpe/! Tvdi!joufsftu!dptu!jodmveft!bmm!joufsftu!uibu!qsfwjpvtmz!xbt!bddpvoufe!gps!jo!bddpsebodf!xjui!uif!sfrvjsfnfout!pg! qbsbhsbqit!6—33!pg!Tubufnfou!Op/!73-!Dpejgjdbujpo!pg!Bddpvoujoh!boe!Gjobodjbm!Sfqpsujoh!Hvjebodf!Dpoubjofe!jo!Qsf. 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bqqmjdbujpo!jt!fodpvsbhfe/ How the Changes in This Statement Will Improve Accounting and Financial Reporting Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!xjmm!jnqspwf!gjobodjbm!sfqpsujoh!cz!qspwjejoh!vtfst!pg!gjobodjbm!tubufnfout!xjui!npsf! sfmfwbou!jogpsnbujpo!bcpvu!dbqjubm!bttfut!boe!uif!dptu!pg!cpsspxjoh!gps!b!sfqpsujoh!qfsjpe/!Uif!sftvmujoh!jogpsnbujpo!bmtp! xjmm!foibodf!uif!dpnqbsbcjmjuz!pg!jogpsnbujpo!bcpvu!dbqjubm!bttfut!boe!uif!dptu!pg!cpsspxjoh!gps!b!sfqpsujoh!qfsjpe!gps!cpui! hpwfsonfoubm!bdujwjujft!boe!cvtjoftt.uzqf!bdujwjujft/ GASB Statement No. 91 - Conduit Debt Obligations Summary Uif!qsjnbsz!pckfdujwft!pg!uijt!Tubufnfou!bsf!up!qspwjef!b!tjohmf!nfuipe!pg!sfqpsujoh!dpoevju!efcu!pcmjhbujpot!cz!jttvfst! boe!fmjnjobuf!ejwfstjuz!jo!qsbdujdf!bttpdjbufe!xjui!)2*!dpnnjunfout!fyufoefe!cz!jttvfst-!)3*!bssbohfnfout!bttpdjbufe! xjui!dpoevju!efcu!pcmjhbujpot-!boe!)4*!sfmbufe!opuf!ejtdmptvsft/!Uijt!Tubufnfou!bdijfwft!uiptf!pckfdujwft!cz!dmbsjgzjoh!uif! fyjtujoh!efgjojujpo!pg!b!dpoevju!efcu!pcmjhbujpo<!ftubcmjtijoh!uibu!b!dpoevju!efcu!pcmjhbujpo!jt!opu!b!mjbcjmjuz!pg!uif!jttvfs<! 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up!tvqqpsu!uif!pcmjhps“t!efcu!tfswjdf!uispvhi!b!wpmvoubsz!dpnnjunfou/ Uijt!Tubufnfou!bmtp!beesfttft!bssbohfnfout!.!pgufo!dibsbdufsj{fe!bt!mfbtft!.!uibu!bsf!bttpdjbufe!xjui!dpoevju!efcu! pcmjhbujpot/!Jo!uiptf!bssbohfnfout-!dbqjubm!bttfut!bsf!dpotusvdufe!ps!bdrvjsfe!xjui!uif!qspdffet!pg!b!dpoevju!efcu! pcmjhbujpo!boe!vtfe!cz!uijse.qbsuz!pcmjhpst!jo!uif!dpvstf!pg!uifjs!bdujwjujft/!Qbznfout!gspn!uijse.qbsuz!pcmjhpst!bsf!joufoefe! up!dpwfs!boe!dpjodjef!xjui!efcu!tfswjdf!qbznfout/!Evsjoh!uiptf!bssbohfnfout-!jttvfst!sfubjo!uif!ujumft!up!uif!dbqjubm! bttfut/!Uiptf!ujumft!nbz!ps!nbz!opu!qbtt!up!uif!pcmjhpst!bu!uif!foe!pg!uif!bssbohfnfout/ Uijt!Tubufnfou!sfrvjsft!jttvfst!up!ejtdmptf!hfofsbm!jogpsnbujpo!bcpvu!uifjs!dpoevju!efcu!pcmjhbujpot-!pshboj{fe!cz!uzqf!pg! dpnnjunfou-!jodmvejoh!uif!bhhsfhbuf!pvutuboejoh!qsjodjqbm!bnpvou!pg!uif!jttvfst“!dpoevju!efcu!pcmjhbujpot!boe!b! eftdsjqujpo!pg!fbdi!uzqf!pg!dpnnjunfou/!Jttvfst!uibu!sfdphoj{f!mjbcjmjujft!sfmbufe!up!tvqqpsujoh!uif!efcu!tfswjdf!pg!dpoevju! efcu!pcmjhbujpot!bmtp!tipvme!ejtdmptf!jogpsnbujpo!bcpvu!uif!bnpvou!sfdphoj{fe!boe!ipx!uif!mjbcjmjujft!dibohfe!evsjoh!uif! sfqpsujoh!qfsjpe/ Effective Date and Transition Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!bsf!fggfdujwf!gps!sfqpsujoh!qfsjpet!cfhjoojoh!bgufs!Efdfncfs!26-!3132/!Fbsmjfs! bqqmjdbujpo!jt!fodpvsbhfe/ 6 150 Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!xjmm!jnqspwf!gjobodjbm!sfqpsujoh!cz!fmjnjobujoh!uif!fyjtujoh!pqujpo!gps!jttvfst!up!sfqpsu! dpoevju!efcu!pcmjhbujpot!bt!uifjs!pxo!mjbcjmjujft-!uifsfcz!foejoh!tjhojgjdbou!ejwfstjuz!jo!qsbdujdf/!Uif!dmbsjgjfe!efgjojujpo!xjmm! sftpmwf!tublfipmefst“!vodfsubjouz!bt!up!xifuifs!b!hjwfo!gjobodjoh!jt-!jo!gbdu-!b!dpoevju!efcu!pcmjhbujpo/!Sfrvjsjoh!jttvfst!up sfdphoj{f!mjbcjmjujft!bttpdjbufe!xjui!beejujpobm!dpnnjunfout!fyufoefe!cz!jttvfstboe!up!sfdphoj{f!bttfut!boe!efgfssfe! jogmpxt!pg!sftpvsdft!sfmbufe!up!dfsubjo!bssbohfnfout!bttpdjbufe!xjui!dpoevju!efcu!pcmjhbujpot!bmtp!xjmm!fmjnjobuf!ejwfstjuz-! uifsfcz!jnqspwjoh!dpnqbsbcjmjuz!jo!sfqpsujoh!cz!jttvfst/!Sfwjtfe!ejtdmptvsf!sfrvjsfnfout!xjmmqspwjef!gjobodjbm!tubufnfou! vtfst!xjui!cfuufs!jogpsnbujpo!sfhbsejoh!uif!dpnnjunfout!jttvfst!fyufoe!boe!uif!mjlfmjippe!uibu!uifz!xjmm!gvmgjmm!uiptf! dpnnjunfout/!Uibu!jogpsnbujpo!xjmm!jogpsn!vtfst!pg!uif!qpufoujbm!jnqbdu!pg!tvdi!dpnnjunfout!po!uif!gjobodjbmsftpvsdft!pg! jttvfst!boe!ifmq!vtfst!bttftt!jttvfst“!spmft!jo!dpoevju!efcu!pcmjhbujpot/ GASB Statement No. 92- Omnibus 2020 Summary Uif!pckfdujwft!pg!uijt!Tubufnfou!bsf!up!foibodf!dpnqbsbcjmjuz!jo!bddpvoujoh!boe!gjobodjbm!sfqpsujoh!boe!up!jnqspwf!uif! dpotjtufodz!pg!bvuipsjubujwf!mjufsbuvsf!cz!beesfttjoh!qsbdujdf!jttvft!uibu!ibwf!cffo!jefoujgjfe!evsjoh!jnqmfnfoubujpo!boe! bqqmjdbujpo!pg!dfsubjo!HBTC!Tubufnfout/!Uijt!Tubufnfou!beesfttft!b!wbsjfuz!pg!upqjdt!boe!jodmveft!tqfdjgjd!qspwjtjpot! bcpvu!uif!gpmmpxjoh; Uif!fggfdujwf!ebuf!pg!Tubufnfou!Op/!98-!Mfbtft-!boe!Jnqmfnfoubujpo!Hvjef!Op/!312:.4-!Mfbtft-!gps!joufsjn! gjobodjbm!sfqpsut Sfqpsujoh!pg!jousb.foujuz!usbotgfst!pg!bttfut!cfuxffo!b!qsjnbsz!hpwfsonfou!fnqmpzfs!boe!b!dpnqpofou!voju! 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Bsf!Opu!xjuijo!uif!Tdpqf!pg!HBTC!Tubufnfou!79-!boe!Bnfoenfout!up!Dfsubjo!Qspwjtjpot!pg!HBTC!Tubufnfout!78! boe!79-!bt!bnfoefe-!boe!Op/!85-!Gjobodjbm!Sfqpsujoh!gps!Qptufnqmpznfou!Cfofgju!Qmbot!Puifs!Uibo!Qfotjpo! Qmbot-!bt!bnfoefe-!up!sfqpsujoh!bttfut!bddvnvmbufe!gps!qptufnqmpznfou!cfofgjut Uif!bqqmjdbcjmjuz!pg!dfsubjo!sfrvjsfnfout!pg!Tubufnfou!Op/!95-!Gjevdjbsz!Bdujwjujft-!up!qptufnqmpznfou!cfofgju! bssbohfnfout Nfbtvsfnfou!pg!mjbcjmjujft!)boe!bttfut-!jg!boz*!sfmbufe!up!bttfu!sfujsfnfou!pcmjhbujpot!)BSPt*!jo!b!hpwfsonfou! bdrvjtjujpo Sfqpsujoh!cz!qvcmjd!foujuz!sjtl!qppmt!gps!bnpvout!uibu!bsf!sfdpwfsbcmf!gspn!sfjotvsfst!ps!fydftt!jotvsfst Sfgfsfodf!up!oposfdvssjoh!gbjs!wbmvf!nfbtvsfnfout!pg!bttfut!ps!mjbcjmjujft!jo!bvuipsjubujwf!mjufsbuvsf Ufsnjopmphz!vtfe!up!sfgfs!up!efsjwbujwf!jotusvnfout/!! 7 151 Future Accounting Standard Changes (Continued) Effective Date and Transition Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!bsf!fggfdujwf!bt!gpmmpxt; Uif!sfrvjsfnfout!sfmbufe!up!uif!fggfdujwf!ebuf!pg!Tubufnfou!98!boe!Jnqmfnfoubujpo!Hvjef!312:.4-!sfjotvsbodf! sfdpwfsjft-!boe!ufsnjopmphz!vtfe!up!sfgfs!up!efsjwbujwf!jotusvnfout!bsf!fggfdujwf!vqpo!jttvbodf/ Uif!sfrvjsfnfout!sfmbufe!up!jousb.foujuz!usbotgfst!pg!bttfut!boe!uiptf!sfmbufe!up!uif!bqqmjdbcjmjuz!pg!Tubufnfout!84! boe!85!bsf!fggfdujwf!gps!gjtdbm!zfbst!cfhjoojoh!bgufs!Kvof!26-!3131/ Uif!sfrvjsfnfout!sfmbufe!up!bqqmjdbujpo!pg!Tubufnfou!95!up!qptufnqmpznfou!cfofgju!bssbohfnfout!boe!uiptf! sfmbufe!up!oposfdvssjoh!gbjs!wbmvf!nfbtvsfnfout!pg!bttfut!ps!mjbcjmjujft!bsf!fggfdujwf!gps!sfqpsujoh!qfsjpet!cfhjoojoh! bgufs!Kvof!26-!3131/! Uif!sfrvjsfnfout!sfmbufe!up!uif!nfbtvsfnfou!pg!mjbcjmjujft!)boe!bttfut-!jg!boz*!bttpdjbufe!xjui!BSPt!jo!b! hpwfsonfou!bdrvjtjujpo!bsf!fggfdujwf!gps!hpwfsonfou!bdrvjtjujpot!pddvssjoh!jo!sfqpsujoh!qfsjpet!cfhjoojoh!bgufs! Kvof!26-!3131/ Fbsmjfs!bqqmjdbujpojt!fodpvsbhfe!boe!jt!qfsnjuufe!cz!upqjd/ How the Changes in This Statement Will Improve Accounting and Financial Reporting Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!xjmm!foibodf!dpnqbsbcjmjuz!jo!uif!bqqmjdbujpo!pg!bddpvoujoh!boe!gjobodjbm!sfqpsujoh! sfrvjsfnfout!boe!xjmm!jnqspwf!uif!dpotjtufodz!pg!bvuipsjubujwf!mjufsbuvsf/!Npsf!dpnqbsbcmf!sfqpsujoh!xjmm!jnqspwf!uif! vtfgvmoftt!pg!jogpsnbujpo!gps!vtfst!pg!tubuf!boe!mpdbm!hpwfsonfou!gjobodjbm!tubufnfout/ GASB Statement No. 93- Replacement of Interbank Offered Rates Summary Uif!pckfdujwf!pg!uijt!Tubufnfou!jt!up!beesftt!uiptf!boe!puifs!bddpvoujoh!boe!gjobodjbm!sfqpsujoh!jnqmjdbujpot!uibu!sftvmu! gspn!uif!sfqmbdfnfou!pg!bo!JCPS/!Uijt!Tubufnfou!bdijfwft!uibu!pckfdujwf!cz; Qspwjejoh!fydfqujpot!gps!dfsubjo!ifehjoh!efsjwbujwf!jotusvnfout!up!uif!ifehf!bddpvoujoh!ufsnjobujpo!qspwjtjpot! xifo!bo!JCPS!jt!sfqmbdfe!bt!uif!sfgfsfodf!sbuf!pg!uif!ifehjoh!efsjwbujwf!jotusvnfou“t!wbsjbcmf!qbznfou Dmbsjgzjoh!uif!ifehf!bddpvoujoh!ufsnjobujpo!qspwjtjpot!xifo!b!ifehfe!jufn!jt!bnfoefe!up!sfqmbdf!uif!sfgfsfodf! sbuf Dmbsjgzjoh!uibu!uif!vodfsubjouz!sfmbufe!up!uif!dpoujovfe!bwbjmbcjmjuz!pg!JCPSt!epft!opu-!cz!jutfmg-!bggfdu!uif! bttfttnfou!pg!xifuifs!uif!pddvssfodf!pg!b!ifehfe!fyqfdufe!usbotbdujpo!jt!qspcbcmf Sfnpwjoh!MJCPS!bt!bo!bqqspqsjbuf!cfodinbsl!joufsftu!sbuf!gps!uif!rvbmjubujwf!fwbmvbujpo!pg!uif!fggfdujwfoftt!pg! bo!joufsftu!sbuf!txbq Jefoujgzjoh!b!Tfdvsfe!Pwfsojhiu!Gjobodjoh!Sbuf!boe!uif!Fggfdujwf!Gfefsbm!Gvoet!Sbuf!bt!bqqspqsjbuf!cfodinbsl! joufsftu!sbuft!gps!uif!rvbmjubujwf!fwbmvbujpo!pg!uif!fggfdujwfoftt!pg!bo!joufsftu!sbuf!txbq Dmbsjgzjoh!uif!efgjojujpo!pg!sfgfsfodf!sbuf-!bt!ju!jt!vtfe!jo!Tubufnfou!64-!bt!bnfoefe Qspwjejoh!bo!fydfqujpo!up!uif!mfbtf!npejgjdbujpot!hvjebodf!jo!Tubufnfou!98-!bt!bnfoefe-!gps!dfsubjo!mfbtf dpousbdut!uibu!bsf!bnfoefe!tpmfmz!up!sfqmbdf!bo!JCPS!bt!uif!sbuf!vqpo!xijdi!wbsjbcmf!qbznfout!efqfoe 8 152 Future Accounting Standard Changes (Continued) Effective Date and Transition Uif!sfnpwbm!pg!MJCPS!bt!bo!bqqspqsjbuf!cfodinbsl!joufsftu!sbuf!jt!fggfdujwf!gps!sfqpsujoh!qfsjpet!foejoh!bgufs! Efdfncfs!42-!3132/!Bmm!puifs!sfrvjsfnfout!pg!uijt!Tubufnfou!bsf!fggfdujwf!gps!sfqpsujoh!qfsjpet!cfhjoojoh!bgufs! Kvof!26-!3131/!Fbsmjfs!bqqmjdbujpo!jt!fodpvsbhfe/Uif!fydfqujpot!up!uif!fyjtujoh!qspwjtjpot!gps!ifehf!bddpvoujoh! ufsnjobujpo!boe!mfbtf!npejgjdbujpot!jo!uijt!Tubufnfou!xjmm!sfevdf!uif!dptu!pg!uif!bddpvoujoh!boe!gjobodjbm!sfqpsujoh! sbnjgjdbujpot!pg!sfqmbdjoh!JCPSt!xjui!puifs!sfgfsfodf!sbuft/!Uif!sfmjbcjmjuz!boe!sfmfwbodf!pg!sfqpsufe!jogpsnbujpo!xjmm!cf! nbjoubjofe!cz!sfrvjsjoh!uibu!bhsffnfout!uibu!fggfdujwfmz!nbjoubjo!bo!fyjtujoh!ifehjoh!bssbohfnfou!dpoujovf!up!cf! bddpvoufe!gps!jo!uif!tbnf!nboofs!bt!cfgpsf!uif!sfqmbdfnfou!pg!b!sfgfsfodf!sbuf/!Bt!b!sftvmu-!uijt!Tubufnfou!xjmm!qsftfswf! uif!dpotjtufodz!boe!dpnqbsbcjmjuz!pg!sfqpsujoh!ifehjoh!efsjwbujwf!jotusvnfout!boe!mfbtft!bgufs!hpwfsonfout!bnfoe!ps! sfqmbdf!bhsffnfout!up!sfqmbdf!bo!JCPS/ How the Changes in This Statement Will Improve Accounting and Financial Reporting Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!xjmm!foibodf!dpnqbsbcjmjuz!jo!uif!bqqmjdbujpo!pg!bddpvoujoh!boe!gjobodjbm!sfqpsujoh! sfrvjsfnfout!boe!xjmm!jnqspwf!uif!dpotjtufodz!pg!bvuipsjubujwf!mjufsbuvsf/!Npsf!dpnqbsbcmf!sfqpsujoh!xjmm!jnqspwf!uif! vtfgvmoftt!pg!jogpsnbujpo!gps!vtfst!pg!tubuf!boe!mpdbm!hpwfsonfou!gjobodjbm!tubufnfout/ GASB Statement No. 94!.!Public-Private and Public-Public Partnerships and Availability Payment Arrangements Summary Uif!qsjnbsz!pckfdujwf!pg!uijt!Tubufnfou!jt!up!jnqspwf!gjobodjbm!sfqpsujoh!cz!beesfttjoh!jttvft!sfmbufe!up!qvcmjd.qsjwbuf!boe! qvcmjd.qvcmjd!qbsuofstijq!bssbohfnfout!)QQQt*/!Bt!vtfe!jo!uijt!Tubufnfou-!b!QQQ!jt!bo!bssbohfnfou!jo!xijdi!b! hpwfsonfou!)uif!usbotgfsps*!dpousbdut!xjui!bo!pqfsbups!)b!hpwfsonfoubm!ps!opohpwfsonfoubm!foujuz*!up!qspwjef!qvcmjd! tfswjdft!cz!dpowfzjoh!dpouspm!pg!uif!sjhiu!up!pqfsbuf!ps!vtf!b!opogjobodjbm!bttfu-!tvdi!bt!jogsbtusvduvsf!ps!puifs!dbqjubm! bttfu!)uif!voefsmzjoh!QQQ!bttfu*-!gps!b!qfsjpe!pg!ujnf!jo!bo!fydibohf!ps!fydibohf.mjlf!usbotbdujpo/!Tpnf!QQQt!nffu!uif! efgjojujpo!pg!btfswjdf!dpodfttjpo!bssbohfnfou!)TDB*-!xijdi!uif!Cpbse!efgjoft!jo!uijt!Tubufnfou!bt!b!QQQ!jo!xijdi!)2*! uif!pqfsbups!dpmmfdut!boe!jt!dpnqfotbufe!cz!gfft!gspn!uijse!qbsujft<!)3*!uif!usbotgfsps!efufsnjoft!ps!ibt!uif!bcjmjuz!up! npejgz!ps!bqqspwf!xijdi!tfswjdftuif!pqfsbups!jt!sfrvjsfe!up!qspwjef-!up!xipn!uif!pqfsbups!jt!sfrvjsfe!up!qspwjef!uif! tfswjdft-!boe!uif!qsjdft!ps!sbuft!uibu!dbo!cf!dibshfe!gps!uif!tfswjdft<!boe!)4*!uif!usbotgfsps!jt!foujumfe!up!tjhojgjdbou! sftjevbm!joufsftu!jo!uif!tfswjdf!vujmjuz!pg!uif!voefsmzjoh!QQQ!bttfu!bu!uif!foe!pg!uif!bssbohfnfou/ Uijt!Tubufnfou!bmtp!qspwjeft!hvjebodf!gps!bddpvoujoh!boe!gjobodjbm!sfqpsujoh!gps!bwbjmbcjmjuz!qbznfou!bssbohfnfout! )BQBt*/!Bt!efgjofe!jo!uijt!Tubufnfou-!bo!BQB!jt!bo!bssbohfnfou!jo!xijdi!b!hpwfsonfou!dpnqfotbuft!bo!pqfsbups!gps! tfswjdft!uibu!nbz!jodmvef!eftjhojoh-!dpotusvdujoh-!gjobodjoh-!nbjoubjojoh-!ps!pqfsbujoh!bo!voefsmzjoh!opogjobodjbm!bttfu!gps! b!qfsjpe!pg!ujnf!jo!bo!fydibohf!ps!fydibohf.mjlf!usbotbdujpo/ Effective Date and Transition Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!bsf!fggfdujwf!gps!gjtdbm!zfbst!cfhjoojoh!bgufs!Kvof!26-!3133-!boe!bmm!sfqpsujoh!qfsjpet! uifsfbgufs/!Fbsmjfs!bqqmjdbujpo!jt!fodpvsbhfe/ QQQt!tipvme!cf!sfdphoj{fe!boe!nfbtvsfe!vtjoh!uif!gbdut!boe!djsdvntubodft!uibu!fyjtu!bu!uif!cfhjoojoh!pg!uif!qfsjpe!pg! jnqmfnfoubujpo!)ps!jg!bqqmjdbcmf!up!fbsmjfs!qfsjpet-!uif!cfhjoojoh!pg!uif!fbsmjftu!qfsjpe!sftubufe*/ How the Changes in This Statement Will Improve Accounting and Financial Reporting Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!xjmm!jnqspwf!gjobodjbm!sfqpsujoh!cz!ftubcmjtijoh!uif!efgjojujpot!pg!QQQt!boe!BQBt!boe! qspwjejoh!vojgpsn!hvjebodf!po!bddpvoujoh!boe!gjobodjbm!sfqpsujoh!gps!usbotbdujpot!uibu!nffu!uiptf!efgjojujpot/!Uibu!vojgpsn! hvjebodf!xjmm!qspwjef!npsf!sfmfwbou!boe!sfmjbcmf!jogpsnbujpo!gps!gjobodjbm!tubufnfou!vtfst!boe!dsfbuf!hsfbufs!dpotjtufodz! jo!qsbdujdf/!Uijt!Tubufnfou!xjmm!foibodf!uif!efdjtjpo!vtfgvmoftt!pg!b!hpwfsonfou“t!gjobodjbm!tubufnfout!cz!sfrvjsjoh! hpwfsonfout!up!sfqpsu!bttfut!boe!mjbcjmjujft!sfmbufe!up!QQQt!dpotjtufoumz!boe!ejtdmptf!jnqpsubou!jogpsnbujpo!bcpvu!QQQ! usbotbdujpot/!Uif!sfrvjsfe!ejtdmptvsft!xjmm!bmmpx!vtfst!up!voefstuboe!uif!tdbmf!boe!jnqpsubou!btqfdut!pg!b!hpwfsonfou“t! QQQt!boe!fwbmvbuf!b!hpwfsonfou“t!gvuvsf!pcmjhbujpot!boe!bttfut!sftvmujoh!gspn!QQQt/ 9 153 Future Accounting Standard Changes (Continued) GASB Statement No. 95- Postponement of the Effective Dates of Certain Authoritative Guidance Summary Uif!qsjnbsz!pckfdujwf!pg!uijt!Tubufnfou!jt!up!qspwjef!ufnqpsbsz!sfmjfg!up!hpwfsonfout!boe!puifs!tublfipmefst!jo!mjhiu!pg!uif! DPWJE.2:!qboefnjd/!Uibu!pckfdujwf!jt!bddpnqmjtife!cz!qptuqpojoh!uif!fggfdujwf!ebuft!pg!dfsubjo!qspwjtjpot!jo!Tubufnfout! boe!Jnqmfnfoubujpo!Hvjeft!uibu!gjstu!cfdbnf!fggfdujwf!ps!bsf!tdifevmfe!up!cfdpnf!fggfdujwf!gps!qfsjpet!cfhjoojoh!bgufs! Kvof!26-!3129-!boe!mbufs/ Uif!fggfdujwf!ebuft!pg!dfsubjo!qspwjtjpot!dpoubjofe!jo!uif!gpmmpxjoh!qspopvodfnfout!bsf!qptuqpofe!cz!pof!zfbs; Tubufnfou!Op/!94-!Dfsubjo!Bttfu!Sfujsfnfou!Pcmjhbujpot Tubufnfou!Op/!95-!Gjevdjbsz!Bdujwjujft Tubufnfou!Op/!99-!Dfsubjo!Ejtdmptvsft!Sfmbufe!up!Efcu-!jodmvejoh!Ejsfdu!Cpsspxjoht!boe!Ejsfdu!Qmbdfnfout Tubufnfou!Op/!9:-!Bddpvoujoh!gps!Joufsftu!Dptu!Jodvssfe!cfgpsf!uif!Foe!pg!b!Dpotusvdujpo!Qfsjpe Tubufnfou!Op/!:1-!Nbkpsjuz!Frvjuz!Joufsftut Tubufnfou!Op/!:2-!Dpoevju!Efcu!Pcmjhbujpot Tubufnfou!Op/!:3-!Pnojcvt!3131 Tubufnfou!Op/!:4-!Sfqmbdfnfou!pg!Joufscbol!Pggfsfe!Sbuft Jnqmfnfoubujpo!Hvjef!Op/!3128.4-!Bddpvoujoh!boe!Gjobodjbm!Sfqpsujoh!gps!Qptufnqmpznfou!Cfofgjut!Puifs!Uibo! Qfotjpot!)boe!Dfsubjo!Jttvft!Sfmbufe!up!PQFC!Qmbo!Sfqpsujoh* Jnqmfnfoubujpo!Hvjef!Op/!3129.2-!Jnqmfnfoubujpo!Hvjebodf!Vqebuf!.!3129 Jnqmfnfoubujpo!Hvjef!Op/!312:.2-!Jnqmfnfoubujpo!Hvjebodf!Vqebuf!.!312: Jnqmfnfoubujpo!Hvjef!Op/!312:.3-!Gjevdjbsz!Bdujwjujft/! Uif!fggfdujwf!ebuft!pg!uif!gpmmpxjoh!qspopvodfnfout!bsf!qptuqpofe!cz!29!npouit; Tubufnfou!Op/!98-!Mfbtft Jnqmfnfoubujpo!Hvjef!Op/!312:.4-!Mfbtft/! Effective Date and Transition Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!bsf!fggfdujwf!jnnfejbufmz/ How the Changes in This Statement Will Improve Accounting and Financial Reporting Qspwjejoh!hpwfsonfout!xjui!tvggjdjfou!ujnf!up!bqqmz!uif!bvuipsjubujwf!hvjebodf!beesfttfe!jo!uijt!Tubufnfou!xjmm!ifmq!up! tbgfhvbse!uif!sfmjbcjmjuz!pg!uifjs!gjobodjbm!tubufnfout-!xijdi!jo!uvso!xjmm!cfofgju!uif!vtfst!pg!uiptf!gjobodjbm!tubufnfout/ 10 154 Future Accounting Standard Changes (Continued) GASB Statement No. 96- Subscription-Based Information Technology Arrangements Summary Uijt!Tubufnfou!qspwjeft!hvjebodf!po!uif!bddpvoujoh!boe!gjobodjbm!sfqpsujoh!gps!tvctdsjqujpo.cbtfe!jogpsnbujpo!ufdiopmphz! bssbohfnfout!)TCJUBt*!gps!hpwfsonfou!foe!vtfst!)hpwfsonfout*/!Uijt!Tubufnfou!)2*!efgjoft!b!TCJUB<!)3*!ftubcmjtift! uibu!b!TCJUB!sftvmut!jo!b!sjhiu.up.vtf!tvctdsjqujpo!bttfu!.!bo!joubohjcmf!bttfu!.!boe!b!dpssftqpoejoh!tvctdsjqujpo!mjbcjmjuz<! )4*!qspwjeft!uif!dbqjubmj{bujpo!dsjufsjb!gps!pvumbzt!puifs!uibo!tvctdsjqujpo!qbznfout-!jodmvejoh!jnqmfnfoubujpo!dptut!pg!b! TCJUB<!boe!)5*!sfrvjsft!opuf!ejtdmptvsft!sfhbsejoh!b!TCJUB/!Up!uif!fyufou!sfmfwbou-!uif!tuboebset!gps!TCJUBt!bsf!cbtfe! po!uif!tuboebset!ftubcmjtife!jo!Tubufnfou!Op/!98-!Mfbtft-!bt!bnfoefe/ Voefs!uijt!Tubufnfou-!b!hpwfsonfou!hfofsbmmz!tipvme!sfdphoj{f!b!sjhiu.up.vtf!tvctdsjqujpo!bttfu!.!bo!joubohjcmf!bttfu!.! boe!b!dpssftqpoejoh!tvctdsjqujpo!mjbcjmjuz/!B!hpwfsonfou!tipvme!sfdphoj{f!uif!tvctdsjqujpo!mjbcjmjuz!bu!uif!dpnnfodfnfou! pg!uif!tvctdsjqujpo!ufsn-!.!xijdi!jt!xifo!uif!tvctdsjqujpo!bttfu!jt!qmbdfe!joup!tfswjdf/!Uif!tvctdsjqujpo!mjbcjmjuz!tipvme!cf! jojujbmmz!nfbtvsfe!bu!uif!qsftfou!wbmvf!pg!tvctdsjqujpo!qbznfout!fyqfdufe!up!cf!nbef!evsjoh!uif!tvctdsjqujpo!ufsn/!Gvuvsf! tvctdsjqujpo!qbznfout!tipvme!cf!ejtdpvoufe!vtjoh!uif!joufsftu!sbuf!uif!TCJUB!wfoeps!dibshft!uif!hpwfsonfou-!xijdi! nbz!cf!jnqmjdju-!ps!uif!hpwfsonfou“t!jodsfnfoubm!cpsspxjoh!sbuf!jg!uif!joufsftu!sbuf!jt!opu!sfbejmz!efufsnjobcmf/!B! hpwfsonfou!tipvme!sfdphoj{f!bnpsuj{bujpo!pg!uif!ejtdpvou!po!uif!tvctdsjqujpo!mjbcjmjuz!bt!bo!pvugmpx!pg!sftpvsdft!)gps! fybnqmf-!joufsftu!fyqfotf*!jo!tvctfrvfou!gjobodjbm!sfqpsujoh!qfsjpet/ Uijt!Tubufnfou!qspwjeft!bo!fydfqujpo!gps!tipsu.ufsn!TCJUBt/!Tipsu.ufsn!TCJUBt!ibwf!b!nbyjnvn!qpttjcmf!ufsn!voefs! uif!TCJUB!dpousbdu!pg!23!npouit!)ps!mftt*-!jodmvejoh!boz!pqujpot!up!fyufoe-!sfhbsemftt!pg!uifjs!qspcbcjmjuz!pg!cfjoh! fyfsdjtfe/!Tvctdsjqujpo!qbznfout!gps!tipsu.ufsn!TCJUBt!tipvme!cf!sfdphoj{fe!bt!pvugmpxt!pg!sftpvsdft/ Uijt!Tubufnfou!sfrvjsft!b!hpwfsonfou!up!ejtdmptf!eftdsjqujwf!jogpsnbujpo!bcpvu!jut!TCJUBt!puifs!uibo!tipsu.ufsn!TCJUBt-! tvdi!bt!uif!bnpvou!pg!uif!tvctdsjqujpo!bttfu-!bddvnvmbufe!bnpsuj{bujpo-!puifs!qbznfout!opu!jodmvefe!jo!uif!nfbtvsfnfou! pg!b!tvctdsjqujpo!mjbcjmjuz-!qsjodjqbm!boe!joufsftu!sfrvjsfnfout!gps!uif!tvctdsjqujpo!mjbcjmjuz-!boe!puifs!fttfoujbm!jogpsnbujpo/ Effective Date and Transition Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!bsf!fggfdujwf!gps!gjtdbm!zfbst!cfhjoojoh!bgufsKvof!26-!3133-!boe!bmm!sfqpsujoh!qfsjpet! uifsfbgufs/!Fbsmjfs!bqqmjdbujpo!jt!fodpvsbhfe/Bttfut!boe!mjbcjmjujft!sftvmujoh!gspn!TCJUBt!tipvme!cf!sfdphoj{fe!boe! nfbtvsfe!vtjoh!uif!gbdut!boe!djsdvntubodft!uibu!fyjtufe!bu!uif!cfhjoojoh!pg!uif!gjtdbm!zfbs!jo!xijdi!uijt!Tubufnfou!jt! jnqmfnfoufe/!Hpwfsonfout!bsf!qfsnjuufe-!cvu!bsf!opu!sfrvjsfe-!up!jodmvef!jo!uif!nfbtvsfnfou!pg!uif!tvctdsjqujpo!bttfu! dbqjubmj{bcmf!pvumbzt!bttpdjbufe!xjui!uif!jojujbm!jnqmfnfoubujpo!tubhf!boe!uif!pqfsbujpo!boe!beejujpobm!jnqmfnfoubujpo! tubhf!jodvssfe!qsjps!up!uif!jnqmfnfoubujpo!pg!uijt!Tubufnfou/ How the Changes in This Statement Will Improve Accounting and Financial Reporting Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!xjmm!jnqspwf!gjobodjbm!sfqpsujoh!cz!ftubcmjtijoh!b!efgjojujpo!gps!TCJUBt!boe!qspwjejoh! vojgpsn!hvjebodf!gps!bddpvoujoh!boe!gjobodjbm!sfqpsujoh!gps!usbotbdujpot!uibu!nffu!uibu!efgjojujpo/!Uibu!efgjojujpo!boe! vojgpsn!hvjebodf!xjmm!sftvmu!jo!hsfbufs!dpotjtufodz!jo!qsbdujdf/!Ftubcmjtijoh!uif!dbqjubmj{bujpo!dsjufsjb!gps!jnqmfnfoubujpo! dptut!bmtp!xjmm!sfevdf!ejwfstjuz!boe!jnqspwf!dpnqbsbcjmjuz!jo!gjobodjbm!sfqpsujoh!cz!hpwfsonfout/!Uijt!Tubufnfou!bmtp!xjmm! foibodf!uif!sfmfwbodf!boe!sfmjbcjmjuz!pg!b!hpwfsonfou“t!gjobodjbm!tubufnfout!cz!sfrvjsjoh!b!hpwfsonfou!up!sfqpsu!b! tvctdsjqujpo!bttfu!boe!tvctdsjqujpo!mjbcjmjuz!gps!b!TCJUB!boe!up!ejtdmptf!fttfoujbm!jogpsnbujpo!bcpvu!uif!bssbohfnfou/!Uif! ejtdmptvsft!xjmm!bmmpx!vtfst!up!voefstuboe!uif!tdbmf!boe!jnqpsubou!btqfdut!pg!b!hpwfsonfou“t!TCJUB!bdujwjujft!boe! fwbmvbuf!b!hpwfsonfou“t!pcmjhbujpot!boe!bttfut!sftvmujoh!gspn!TCJUBt/ 11 155 Future Accounting Standard Changes (Continued) GASB Statement No. 97!.!Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32 Summary Uif!qsjnbsz!pckfdujwft!pg!uijt!Tubufnfou!bsf!up!)2*!jodsfbtf!dpotjtufodz!boe!dpnqbsbcjmjuz!sfmbufe!up!uif!sfqpsujoh!pg! gjevdjbsz!dpnqpofou!vojut!jo!djsdvntubodft!jo!xijdi!b!qpufoujbm!dpnqpofou!voju!epft!opu!ibwf!b!hpwfsojoh!cpbse!boe!uif! qsjnbsz!hpwfsonfou!qfsgpsnt!uif!evujft!uibu!b!hpwfsojoh!cpbse!uzqjdbmmz!xpvme!qfsgpsn<!)3*!njujhbuf!dptut!bttpdjbufe!xjui! uif!sfqpsujoh!pg!dfsubjo!efgjofe!dpousjcvujpo!qfotjpo!qmbot-!efgjofe!dpousjcvujpo!puifs!qptufnqmpznfou!cfofgju!)PQFC*! 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Op/!85-!Gjobodjbm!Sfqpsujoh!gps!Qptufnqmpznfou!Cfofgju!Qmbot!Puifs!Uibo!Qfotjpo!Qmbot-!sftqfdujwfmz/ Uijt!Tubufnfou!)2*!sfrvjsft!uibu!b!Tfdujpo!568!qmbo!cf!dmbttjgjfe!bt!fjuifs!b!qfotjpo!qmbo!ps!bopuifs!fnqmpzff!cfofgju! qmbo!efqfoejoh!po!xifuifs!uif!qmbo!nffut!uif!efgjojujpo!pg!b!qfotjpo!qmbo!boe!)3*!dmbsjgjft!uibu!Tubufnfou!95-!bt! bnfoefe-!tipvme!cf!bqqmjfe!up!bmm!bssbohfnfout!pshboj{fe!voefs!JSD!Tfdujpo!568!up!efufsnjof!xifuifs!uiptf! bssbohfnfout!tipvme!cf!sfqpsufe!bt!gjevdjbsz!bdujwjujft/ Uijt!Tubufnfou!tvqfstfeft!uif!sfnbjojoh!qspwjtjpot!pg!Tubufnfou!Op/!43-!Bddpvoujoh!boe!Gjobodjbm!Sfqpsujoh!gps!Joufsobm! Sfwfovf!Dpef!Tfdujpo!568!Efgfssfe!Dpnqfotbujpo!Qmbot-!bt!bnfoefe-!sfhbsejoh!jowftunfou!wbmvbujpo!sfrvjsfnfout!gps! 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Bvuipsjubujwf!Hvjebodf/ 12 156 Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting Uif!sfrvjsfnfout!pg!uijt!Tubufnfou!xjmm!sftvmu!jo!npsf!dpotjtufou!gjobodjbm!sfqpsujoh!pg!efgjofe!dpousjcvujpo!qfotjpo!qmbot-! efgjofe!dpousjcvujpo!PQFC!qmbot-!boe!puifs!fnqmpzff!cfofgju!qmbot-!xijmf!njujhbujoh!uif!dptut!bttpdjbufe!xjui!sfqpsujoh! uiptf!qmbot/!Uif!sfrvjsfnfout!bmtp!xjmm!foibodf!uif!sfmfwbodf-!dpotjtufodz-!boe!dpnqbsbcjmjuz!pg!)2*!uif!jogpsnbujpo! sfmbufe!up!Tfdujpo!568!qmbot!uibu!nffu!uif!efgjojujpo!pg!b!qfotjpo!qmbo!boe!uif!cfofgjut!qspwjefe!uispvhi!uiptf!qmbot!boe! )3*!jowftunfou!jogpsnbujpo!gps!bmm!Tfdujpo!568!qmbot/ )2* Note/!Gspn!HBTC!Qspopvodfnfout!Tvnnbsjft/!Dpqzsjhiu!3131cz!uif!Gjobodjbm!Bddpvoujoh!Gpvoebujpo-!512!Nfssjuu!8-! Opsxbml-!DU!17967-!VTB-!boe!jt!sfqspevdfe!xjui!qfsnjttjpo/ +!!+!!+!!+!!+ Restriction on Use Uijt!dpnnvojdbujpojt!joufoefe!tpmfmz!gps!uif!jogpsnbujpo!boe!vtf!pg!uif!Qvcmjd!Vujmjujft!Dpnnjttjpo-Djuz!Dpvodjm- nbobhfnfou-!boe!uif!Njooftpub!Pggjdf!pg!uif!Tubuf!Bvejups!boe!jt!opu!joufoefe!up!cf!boe!tipvme!opu!cf!vtfe!cz!bozpof! puifs!uibo!uiftf!tqfdjgjfe!qbsujft/ Uif!dpnnfout!boe!sfdpnnfoebujpot!jo!uijt!sfqpsu!bsf!qvsfmz!dpotusvdujwf!jo!obuvsf-!boe!tipvme!cf!sfbe!jo!uijt!dpoufyu/! Pvs!bveju!xpvme!opu!ofdfttbsjmz!ejtdmptf!bmm!xfblofttft!jo!uif!tztufn!cfdbvtf!ju!xbt!cbtfe!po!tfmfdufe!uftut!pg! bddpvoujoh!sfdpset!boe!sfmbufe!ebub/ Jg!zpv!ibwf!boz!rvftujpot!ps!xjti!up!ejtdvtt!boz!pg!uif!jufnt!dpoubjofe!jo!uijt!mfuufs-!qmfbtf!gffm!gsff!up!dpoubdu!vt!bu!zpvs! dpowfojfodf/!Xf!xjti!up!uibol!zpv!gps!uif!pqqpsuvojuz!up!cf!pg!tfswjdf!boe!gps!uif!dpvsuftz!boe!dppqfsbujpo!fyufoefe!up! vt!cz!zpvs!tubgg/! BCEP-!FJDL!'!NFZFST-!MMQ Njoofbqpmjt-!Njooftpub Bqsjm!6-!3132 13 157