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CRI can provide your organization with a roadmap to financial and operational success.

GovFact1Governmental entities face some of the toughest regulatory challenges of any sector. In addition to complex accounting models (consisting of up to three models of financial statement reporting: full accrual accounting, modified accrual accounting, and cash basis accounting) and federal and state grant requirements, they must also comply with ever-changing mandates from the Government Accounting Standards Board (GASB). These twists and turns impact accounting, administrative procedures, and reporting – and can seem overwhelming. However, a CPA and advisory firm with in-depth experience addressing governmental regulations and the increasing transparency requirements can potentially provide turn-by-turn directions to head you toward financial and operational success.

CRI serves hundreds of governmental clients – such as municipalities, school districts, and state agencies – with revenues ranging from less than $100,000 to more than $1 billion. We deliver a variety of cost-effective, comprehensive solutions, including:

Plus, CRI recognizes that governing bodies have needs beyond a basic financial statement audit, and we can navigate you throughout this complex arena. For example, we provide accounting and compliance educational classes for governing bodies to address management’s use and interpretation of financial reporting—which allows your entity to operate more efficiently and effectively while making more educated decisions. Meanwhile, we steer our clients in the right direction by staying up-to-date on government standards through our membership with the American Institute of Certified Public Accountants’ (AICPA’s) Governmental Audit Quality Center.


Cleaning Up Single Audits with New Requirements

Complying with GASB Statement No. 77: Tax Abatement Disclosures

Government-Wide Statement of Activities

Featured CRInsights

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    Client SNAPshot

    CLIENT:Medium-sized Alabama city with approximate population of 30,000
    SCOPE:Annual engagements for the last 5 years
    PROJECTS:Financial statement audits and compliance procedures related to Generally Accepted Government Accounting Standards (or “Yellow Book”) and Uniform Guidance regulations
    RETURNS:CRI provides value beyond basic compliance. We assisted the finance director with strengthening and documenting internal controls in all significant city departments and reduced internal controls findings by 90% over 3 years. Also proactively advise and present to city council members regarding upcoming Governmental Accounting Standards Board (GASB) pronouncements having significant impact on their financial statements.
    90% findings reduction

    Straight Talk

    Translating technical jargon into a plain English “text.”
    How should we record the costs of infrastructure assets on our government-wide balance sheet?
    Most infrastructure assets are recorded on the government-wide balance sheet at the cost of construction or acquisition. There may be circumstances that require alternative costing through a discounting method or another appraisal method – especially in instances of donated infrastructure.
    Should we periodically inventory our city’s infrastructure?
    Absolutely. A periodic inventory will help you ensure that you include all assets on your city’s financial statements.
    Good to know! Now I need some help regarding which assets to list on our balance sheets. Are roads our main infrastructure assets?
    They could be. Your infrastructure consists of many types of structures, commonly including right-of-way land, retaining ponds, storm sewer networks, sidewalks, and parks.
    Thanks! Two more questions: Should we capitalize the costs related to repaving a road? And can you give us advice on how to account for these items?
    Repaving a road is usually a maintenance activity and, therefore, a current expense versus an item to capitalize. We have the governmental experience to give you detailed advice on accounting for your infrastructure. Infrastructure is one of the largest items on your balance sheet, and the accounting can be complex. CRI has a team that specializes in this area of accounting. It would be great to discuss your needs in person.
    I will call you this week to schedule some time. Thank you so much for your help!
    What are some of the biggest changes to Single Audits under the new Uniform Grant Guidance?
    The biggest change is the increase in the Single Audit threshold in total federal expenditures within a year from $500,000 to $750,000. Also, the Type A program cutoff has been raised from $300,000 to $750,000, and any program that does not meet Type A program requirements is considered a Type B program.
    Did the percentage of coverage rule change for low-risk auditees?
    Yes. Prior to the Uniform Grant Guidance, a low-risk auditee had to achieve 25% audit coverage for federal program expenditures. Under the new guidance, a low-risk auditee must have 20% audit coverage. Regular auditees previously had to meet a 50% coverage threshold, which is now a 40% threshold.
    What other ways will the Uniform Grant Guidance affect my audit process?
    Most of the program auditing procedures will remain constant under the Uniform Grant Guidance Single Audit, but there may be other administrative rules for your school to consider. We would be more than happy to meet and advise you regarding the administrative rule changes that might affect your allowable costs, procurement, or subrecipient monitoring.
    How should we account for pensions now that GASB 68 is in effect?
    Pension accounting has changed significantly under GASB 68. One of the most important updates is the requirement to record a net pension liability or asset, deferred inflows, and deferred outflows on your government-wide balance sheet. It is important to note that, in some cases, recording these items negatively impacts net position since a net liability is reported.
    I see. Does GASB 68 affect my fund financial statements?
    No. GASB 68 affects your government-wide financial statements only under a full-accrual accounting model. You can continue to account for pension activity as you always have under the fund modified-accrual accounting model.
    Does the pension note disclosure in my financial statements change?
    It changes significantly. Pension notes are now required to include basic pension plan information, classes of covered employees, and other details. There is also a section that reflects changes in hypothetical discount rates.
    Thank you for the information. I think I will need more guidance on how to properly account for our pension activity. Should we discuss this topic in person?
    Sure! We have extensive knowledge related to pension accounting under GASB 68. This standard has had a tangible impact on governmental accounting, and changes may continue far into the future. We are ready to help!

    Client Chatter

    Our story as shared by our clients.

    Carr, Riggs, and Ingram provides audit and compliance services to our City. CRI is always responsive to our needs and they provide timely services and deliverables. In an environment of changing and complex governmental accounting pronouncements, CRI serves us in an advisory capacity that fulfills our technical needs. CRI also provides consistent staffing on our engagement and active partner participation in our audits. CRI is also available to advise our elected officials on pertinent matters ranging from new accounting pronouncements to internal controls in a government environment. We appreciate the commitment to service that CRI offers and their role in advising our City in complex accounting and auditing matters."

    Melody Salter, Finance Director
    City of Homewood, Alabama

    Solutions Simplified

    Down-to-earth descriptions of our services.
    Accounting & Auditing Services

    Services Also Available for Governments

    Governmental Uniform Grant Guidance / OMB A-133 Audits (Single Audits)

    When a governmental entity receives significant Federal funds, the provisions of Office of Management & Budget (OMB) Circular A-133 and the more recent Uniform Grant Guidance come into play. These make it even more important to comply with the related rules in order to avoid potential penalties and sanctions. CRI’s governmental auditors work with entities impacted by A-133 / Uniform Grant Guidance. We share this valuable experience with our clients, guiding them to navigate through the Single Audit details – from the definition of major programs to the relationship of internal controls over compliance. Whether funding is direct or generated by a pass-through entity, an experienced and knowledgeable audit firm performing your governmental entity’s Single Audits is a key to successfully and efficiently addressing the requirements.

    Advisory Services

    Services Also Available for Governments

    Governmental Budget Assistance

    The budgeting process at a government entity can be very complicated mainly because of funding issues, departmental conflicts, and budgetary accounting basis differences. Many times, consultation with CRI’s governmental staff provides useful insight on the budgeting process. We are able to use our extensive knowledge of the governmental environment to assist in the creation of a budget and translate projections into accurate amounts for budget purposes. We can also support your assumptions by verifying calculations and budget theory as many times a final review is needed to affirm the budget.

    Business Support & Transaction Services

    Services Also Available for Governments

    Governmental Accounting Assistance

    Many governments face budget constraints that put pressure on an accounting staff, and CRI assists by offering economical solutions to support a government’s accounting department. Whether your entity needs one-time help with reconciliations, monthly recurring payroll services, or guidance in applying the latest GASB pronouncements, CRI can assist or bolster your accounting function. We understand the intricacies within a fund accounting environment, and we can deliver appropriate assistance for your entity under accounting methods unique to governments.

    Governmental Financial Statement Preparation

    CRI’s governmental financial statement preparation service is geared toward assisting governments with the preparation of their financial statements in conformity with GAAP and Governmental Accounting Standards Board (GASB) requirements. Reporting standards for governmental entities require financial statements to be prepared on both the modified-accrual basis for the funds and full-accrual accounting for the government as a whole. Many governments do not have personnel with the time or experience to prepare financial statements in accordance with standards, and in these instances, CRI is available to perform these services economically. After CRI prepares the financial statements, your entity will be able to provide these statements to an auditor or management.

    Governance, Risk & Assurance Services

    Services Also Available for Governments

    FISMA Services

    Doing business with the Federal government demands an understanding of the requirements that exist in an ever-changing landscape of IT legislation, regulation, and controls. Traversing the federal regulatory and legislative landscape can be complicated and time-consuming. CRI’s IT audits & assurance team can evaluate your current control posture against the Federal Information Security Management Act’s (FISMA’s) requirements, identify gaps, and provide remediation recommendations.

    Governmental Single Audit Compliance Assistance

    Local governmental entities rely heavily on federal grants as a supplemental source of funding. Whether funding is needed for capital asset purchases or for personnel costs related to specific programs, federal grant resources are valuable, but the related compliance requirements are often complex.  CRI can assist your organization in complying with grant regulations unique to federal grant awards – specifically requirements related to creating, documenting, and implementing internal controls over the handling of federal funds. CRI provides training and assistance for your staff on Single Audit compliance, documentation, grant reporting, and indirect cost calculations. CRI also furnishes guidance on the creation of your Schedule of Expenditures of Federal Awards, which is crucial for annual grant reporting.

    Federal Single Audit requirements frequently change, as with the new Uniform Grant Guidance, and CRI is your resource for navigating the federal rules related to Single Audits. CRI offers assistance to your entity from the initial grant award through the completion of the grant reporting via expertise in grant accounting, internal controls, and regulation compliance.

    IT Audits & Assurance Services

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    Practice Leader

    Brian Barksdale
    Brian Barksdale
    Partner-in-Charge & Industry Line Leader
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