Download Financial Reporting Policy

Arapahoe County
Finance Department
Financial Reporting Policy
I.
Policy No.: 5.2
Version: 1.0
Resolution No.: 17XXXX
Effective Date:
Owner – Finance, Accounting
Division
Authority:
The Local Government Audit Law (Section 29-1-601 et seq., C.R.S.) requires Colorado local
governments to have an annual audit of their financial statements. The law states that the
audit must be performed by an independent Certified Public Accountant (CPA) and be in
accordance with generally accepted auditing standards (GAAS).
The Board of County Commissioners has exclusive power to adopt the financial reporting
policies to help support the county government, including all offices, departments, boards, and
commissions. This includes the approval of the financial reporting practices of Arapahoe
County. The Finance Department is responsible for and hereby authorized to carry out the
policy directives of the Board of County Commissioners and establish the necessary
procedures to do so.
II. Purpose and Scope:
There are numerous beneficial reasons for establishing financial reporting policies along with
federal regulations, SEC regulations, statutory and other third party reporting requirements.
A. The establishment of a financial reporting policy for the County provides for:
1. Fulfilling government’s duty to be publicly accountable and should enable
users to assess that accountability
2. Assist users in evaluating the operating results of the governmental entity for
the year and in assessing the level of services that can be provided by the
governmental entity, the entity’s ability to meet obligations, and its financial
condition.
B. The establishment of an external audit policy for the County provides for:
1. Assurance for citizens, legislators and others that government funds are
accounted for properly and that the County is in substantial compliance with
laws and regulations
2. Provide an additional review by an external entity of the County’s internal
controls over financial reporting
C. The establishment of an external reporting policy for the County provides for:
1. Compliance with federal, state and other regulatory reporting requirements
2. Compliance with continuing disclosures for the debt that has been issued by
the County
3. Maintaining the County’s history of receiving the GFOA Certificate of
Achievement for Excellence in Financial Reporting
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III. Definitions:
A.
B.
C.
D.
CAFR: Comprehensive Annual Financial Report
C.R.S.: Colorado Revised Statutes
EMMA: Electronic Municipal Market Access
GAAP: Generally Accepted Accounting Principles are uniform minimum standards of
and guidelines to financial accounting and reporting. GAAP establishes appropriate
measurement and classification criteria for financial reporting. Adherence to GAAP
provides a reasonable degree of comparability among the financial reports of state
and local governmental units.
E. GAAS: Generally Accepted Auditing Standards; are sets of standards against which
the quality of audit are performed and may be judged.
F. GASB: Governmental Accounting Standards Board, is an independent organization
that establishes accounting and financial reporting standards for U.S. state and local
governments that follow GAAP.
G. GFOA: Government Finance Officers Association; The Government Finance Officers
Association (GFOA), represents public finance officials throughout the United States
and Canada with the mission of enhancing and promoting the professional
management of governmental financial resources by identifying, developing, and
advancing fiscal strategies, policies, and practices for the public benefit.
IV. Policy:
It shall be the policy of Arapahoe County to maintain a proper level of financial reporting in
order to meet all regulatory, statutory and external third party reporting requirements, as well
as to adhere to recognized government finance best practices wherever appropriate.
A. Financial Reporting Standards
1. The Finance Department shall apply generally accepted accounting principles
(GAAP) (see Basis of Accounting Policy, 5.1) as the basis for financial
reporting.
2. The Finance Department shall apply the Governmental Accounting Standards
Board (GASB) financial reporting principles as the primary authoritative
guidance for governmental financial reporting.
3. The County will issue a CAFR annually and make it available for general public
viewing as soon as it is available.
B. External Audit Requirements
1. The County shall engage a qualified external auditing firm annually and cause
the financial audit to be conducted in accordance with the Local Government
Audit Law (Section 29-1-601 et seq., C.R.S.). The County shall engage the
same qualified auditing firm and cause the single audit to be conducted annual
in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, Uniform Grant Guidance, establishes
standards for obtaining consistency and uniformity for audits of states, local
governments, and nonprofit organizations expending federal funds.
C. External Reporting
1. Federal Reporting Requirements
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a) The County shall comply with Title 2 CFR Part 200, §200.512 Report
submission requiring the single audit to be completed and the data
collection form in a timely manner annually.
2. State Reporting Requirements
a) The County shall comply with the Colorado Local Government Audit
Law and file its financial statements annually with the Office of the State
Auditor on a timely basis.
3. Securities and Exchange Commission
a) The County shall comply with all SEC regulations, and in particular,
Rule 15c2-12 (the Rule) to provide certain information concerning its
tax exempt and taxable debt issuance on a continuing and timely basis.
4. GFOA Reporting Requirements
a) The County will continue to pursue the GFOA’s Award for Excellence
by preparing its CAFR in accordance with GFOA recommendations as
appropriate and submitting its CAFR in a timely manner each year.
V. Responsibility
It is the responsibility of the Finance Department to ensure that all of the aforementioned
financial reporting is conducted in compliance with all applicable federal, state and other
regulatory requirements and filed timely.
I.
Related Documents and Procedures:
A. Colorado Revised Statutes – Title 29, , Article 1, Part 6 Local Government Audit Law
B. Governmental Accounting Standards Board Statement No. 34, Basic Financial
Statements—and Management's Discussion and Analysis—for State and Local
Governments
C. Title 2 CFR Part 200 (Uniform Grant Guidance)
D. SEC Filings – Rule 15c2-12
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