PERFORMANCE MANAGEMENT -

GOVERNMENT FINANCE OFFICERS ASSOCIATION NATIONAL CONFERENCE Mark Abrahams was one of the presenters at GFOA's June 5, 2010 pre conference seminar on Basic Components of Performance Management: How to Put the Framework to Work. For further information, click on https://gfoa.basecamphq.com/projects/4918143/file/51976385/FinalTrainingPacket-PM-Atlanta.pdf

Mark Abrahams will be presenting Performance Measurement: A Practical and Essential Budget Tool at the MASBO/New England ASBO Leadership Conference on July 30, 2010, in Sturbridge. This session will focus on concrete ways to begin incorporating performance measures into district budgets to improve accountability, transparency, and marketability. Monitor MASBO's web site for further information.

GASB 45 – OPEB

Mark Abrahams spoke at the Massachusetts Government Finance Officers Association's June 23, 2010 conference on GASB 45. At issue is the question does adopting Chapter 32B, Section 20 provide for an OPEB trust consistent with the GASB requirements. This will be a topic for the MSCPA Government Audit and Accounting Committee on September 17, 2010. For more information, click on http://www.mgfoa.org/Abrahams_OPEB_Trusts.pdf

ACOPEB Software

All governments that provide retiree health benefits must report certain obligations on their financial statements. Tier 3 governments must report these obligations on their FY 2010 financial statements. Announcing ACOPEB, the Alternative Calculation for OPEB, an approach for meeting the requirements of GASB 43 and 45 for small (less than 100 plan participants) OPEB plans. ACOPEB is on-line, user-friendly software for calculating other postemployment benefit obligations and accounting information. GASB 45 provides for an alternative calculation that does not require an actuary. If you have an OPEB plan with less than 100 plan participants then this software may be your solution. Take the test. See if your plan qualifies for the Alternate Calculation. For more information, click on http://www.acopeb.com/

CAFR-ONLINE

Announcing CAFR-ONLINE, on-line, user-friendly software for compiling GASB 34 compliant statements or a Comprehensive Annual Financial Report (CAFR). If you want to prepare your own financial statements, then this software is for you. For more information, click on http://www.cafr-online.com

Upcoming Classes

1. The next GASB Statement No 34 Basic Statements and MD&A Overview workshop scheduled for Friday, December 10, 2010, at the Assabet Valley Regional School District in Marlborough. Due to the importance of understanding your financial statements under SAS 112, I am opening the Uniform Massachusetts Accounting System (UMAS) class to others to provide a timely and informative session on the Basic Statements and the MD&A. This workshop will provide an overview of the two government wide statements, the eight fund perspective statements, and the Management Discussion and Analysis. If you want an overview of the new reporting model, this workshop is for you. For more information, please click on http://www.theabrahamsgroup.com/Courses_GASB34.htm
   
   
2. The next ESE/DOR Roundtable scheduled for Friday afternoon, December 10, 2010, at the Assabet Valley Regional School District in Marlborough. This roundtable features Jay Sullivan from the Department of Elementary and Secondary Education and a representative from the Department of Revenue to discuss and answer your accounting and reporting questions. Find out when the new 2:00 bus leaves or if the mileage varies on the 2:00 bus. Learn about the latest DOR IGRs, stimulus rules, maintenance of effort, Circuit Breaker accounting regulations, E&D rules and regulations, and other accounting treatments. This roundtable is offered free of charge. For more information, visit http://www.theabrahamsgroup.com/Courses_DOE_DOR.htm
   
   
3. The Fall 2010 Uniform Massachusetts Accounting System (UMAS) course will start on Friday, September 24, 2010 at the Needham School Administration Building. UMAS is offered to municipal and school officials and private sector individuals and related staff, who desire a basic course in current Massachusetts' governmental accounting. The course will focus on UMAS system as promulgated by the Bureau of Accounts in their updated UMAS Manual, including 2007 revisions to the capital projects and enterprise fund chapters. UMAS is the "preferred" accounting system for municipalities; regional school districts; water, sewer, fire and other districts; and municipal school departments. The course integrates Department of Elementary and Secondary Education budgeting, accounting and reporting requirements, the Statement No. 34 reporting model of the Governmental Accounting Standards Board and water, sewer, fire, regional school and other district requirements. Check this web site for the next class announcement. For more information about this class, please click on http://www.theabrahamsgroup.com/Courses_UMAS.htm
   
   
4. The 2010 Boot Camp class ia now closed with 19 town and school officials attending. This three-day course is a detailed general ledger journal entry course designed to train accountants to learn the Uniform Massachusetts Accounting System (UMAS). This class is called Boot Camp because the journal entries are repeated over and over. This class helps prepare town accountants and city auditors for the Uniform Municipal Accounting System (UMAS) certification exam. If you need a class to teach you the day-to-day UMAS journal entries or if you are having difficulty preparing for or passing the UMAS certification exam, then this class is for you. Topics covered include tax recap sheet budget journal entries, reconciliation of treasurer's cash, capital project accounting, debt accounting, common journal entries, closing journal entries and free cash calculation. Look for the 2011 class announcement on this web site. For more information, visit http://www.theabrahamsgroup.com/Courses_BootCamp.htm
   
   
5. The 2010 Municipal Law Workshop is now closed with 13 town and school officials attending. This one day course focuses on provisions in the Massachusetts General Laws pertaining to Municipal Finance. If you need a class to teach you the day-to-day basic legal requirements or if you are having difficulty preparing for or passing the Municipal Law portion of the UMAS certification exam, then this class is for you. Look for the 2011 class announcement on this web site, For more information, visit http://www.theabrahamsgroup.com/Courses_MunicipalLaw.htm

FY11 FINAL CHAPTER 70 AND NEW SCHOOL SPENDING

The final FY11 state budget authorizes $3,850,884,445 in Chapter 70 education aid to Massachusetts school districts. This is a reduction of $18,641,690 or 0.5 percent from the FY10 Chapter 70 appropriation.

• All foundation budget rates have been decreased by -2.2%, using the federal government's price deflator index for state and local government expenditures. This is the first time that a negative index has been applied to foundation budgets.
• Statewide foundation enrollment fell slightly from 940,984 in FY10 to 938,333 in FY11 (-0.3%).
• Each municipality's target contribution has been updated using 2008 property values and 2007 personal income data.
• The implementation of the aggregate wealth model for calculating required local contributions continues. When the model was first used in FY07 it was hoped that excess local effort above targets would have been fully reduced in FY11. Recent state budget shortfalls have necessitated more moderate phase-in. FY11 requirements are reduced by 30% of the gap (compared to 15% in FY10).
• The $172,175,259 in SFSF funds from FY10 are added to the base Chapter 70 amount of $3,869,526,145 and then a four percent cut is applied to each district's combined sum.
• 67 districts receive a total of $48 million to ensure that they do not fall below their foundation budgets.
• The resulting Chapter 70 amount is then cut by an additional 1.91% and replaced with $75,271,375 in FY11 SFSF grants. Every operating district is eligible for an SFSF grant.
• Net school spending requirements continue to equal the sum of Chapter 70 aid and required contributions. Although SFSF grants contribute to districts' capacity to fully fund foundation budget levels, the grants are not included in the spending requirement.

Three Chapter 70 and Net School Spending workshops are offered.

6. The next FY11 Basic Chapter 70 and Net School Spending Workshop will meet on Friday afternoon, August 6, 2010 , at the Yarmouth Police Station. This workshop is an introductory session on Chapter 70 and net school spending and will explain the terminology and how your district's Chapter 70 distribution, the net school spending requirement, and how SFSF funds are computed. This workshop is recommended for new school and town officials or individuals who would like a net school spending overview or refresher. If you want to get away or if you want to learn your numbers, come to Yarmouth this summer. For a direct link, please visit http://www.TheAbrahamsGroup.com/Courses_Yarmouth_Final_Spending.htm

7. The next Basic Chapter 70 and Net School Spending Workshop (for Dummies) for FY11 final numbers will be held on Tuesday morning, September 21, 2010, at the Assabet Valley Regional Vocational School in Marlborough. Last year, 35 municipal and school officials attended. This workshop is an introductory session on Chapter 70 and net school spending and will explain the terminology and how your district's Chapter 70 distribution, the net school spending requirement, and how SFSF funds are computed. This workshop will also review net school spending regulations, Chapter 70 district profiles, foundation enrollment, how the foundation budget is computed, NSS compliance, the compliance supplement, NSS worksheet, and municipal costs paid on behalf of the school district. This workshop is recommended for new school and town officials or individuals who would like a net school spending overview or refresher. For a direct link, please visit http://www.theabrahamsgroup.com/CoursesBasic_Net_School_Spending.htm
   
   
8. The next Advanced Chapter 70 and Net School Spending Workshop will be held on Tuesday afternoon, September 21, 2010, for the FY11 final numbers at the Assabet Valley Regional Vocational School in Marlborough. Last year, 34 municipal and school officials attended. This workshop is a hands-on, Excel based session allowing you to compute your FY11 Chapter 70 and net school spending numbers. This workshop also will cover net school spending for regions and how the municipal numbers fit into a region, a review of regional E&D rules and computations, and other topics. Bring your laptops and follow along to compute your numbers. This workshop is recommended for individuals who have a basic understanding of the foundation budget, local contributions, Chapter 70 distributions, required and actual net school spending and the like.. For a direct link, please visit http://www.theabrahamsgroup.com/Courses_ANSS_Spending.htm
   
   
9. The May 13, 2010 workshop on Enterprise Fund Accounting is now closed with 22 municipal and DPW officials registered. This class will cover the budgeting, accounting, financial reporting, and rate setting of Massachusetts Enterprise Funds. 27 town finance and public works officials attended the first class in January 2010. Monitor this web site for an announcement for the next class. For further information, please visit http://www.theabrahamsgroup.com/Courses_Enterprise.htm
   
   
10. The current How to Prepare Massachusetts' Fund Financial Statements class meet on Friday, June 18, 2010, at the Needham School Administration Building with 13 municipal and school officials attending. This class is offered to municipal and school officials and private sector individuals and related staff that desire a hands-on course in preparing the fund financial statements. If your auditors are stating that you have a financial reporting deficiency under SAS 112, this class may be for you. The first day developed the knowledge and a template to produce the Combined Balance Sheet for Free Cash or E&D Certification. The second day (September 23, 2010) will finalize the Combined Balance Sheet and start to develop the template for the GASBS No. 34 eight Fund Perspective Statements. The third day (October 22, 2010) is to complete the Fund Statements. This is not an overview class; this is a how to do it class using Excel combining and combined spreadsheets to prepare the combined and fund perspective statements. . For more information, please visit http://www.theabrahamsgroup.com/Courses_Prepare_Massachusetts_Fund_Financial.htm
    
    
11. The How to Prepare Massachusetts' Government Wide Financial Statements class is now closed. This class is offered to municipal and school officials and private sector individuals and related staff that desire a hands-on course in preparing the Statement of Net Assets, Statement of Activities, and the Management's Discussion and Analysis (MD&A). The first day will review the eight fund statements and develop the knowledge and a template to produce the Statement of Net Assets and the reconciliation of the governmental funds balance sheet to the Statement of Net Assets. The second day will review the Statement of Net Assets and develop the template for the Statement of Activities. The third day is to review the government wide statements and learn how to write the Management's Discussion and Analysis (MD&A). This is not an overview class; this is a how to do it class using Excel spreadsheets to prepare the government wide statements. Knowledge of the fund statements is a pre requisite for this class. Look for a course announcement on this web site. For more information including registration, please visit http://www.theabrahamsgroup.com/Courses_Prepare_Massachusetts_GovWide_Financial.htm
    
    
12. The next School Fund Accounting course will be conducted on Friday, December 3, 2010 at the Needham School Administration Building. Over 50 municipal and school officials attended this session over the last two years.  This session will focus on fund accounting requirements based on the provisions in the Massachusetts General Laws pertaining to School Finance. The focus of this class is on Chapter 71 of the MGL, school special revenue, student activity accounts, regional excess and deficiency calculations and rules, and other funds. If you need a class to teach you the day-to-day basic school fund accounting requirements, then this class is for you. This class will focus on the school finance laws and accounting requirements for municipal and regional school districts including updates for SFSF accounting. For more information, including on-line registration, please visit http://www.theabrahamsgroup.com/Courses_School_Fund_Accounting_Workshop.htm
    
    
13. It is not too late to join the Performance Based Measurement and Budgeting class. Our next session is scheduled for Tuesday, July 13, 2010, at the Needham School Administration Building. The first day focused on performance measurement including the definition and development of performance measures, developing goals, linking goals to performance measures, the use of logic models, and activity mapping. The second day (July 13) uses performance measures and data to inform your budget and change your budget from a line item to a program budget populated with performance information. This class will discuss the recent report of the National Advisory Performance Management Commission which established a Performance Management Framework. If you are interested in more transparency, moving your organization to a results-based management focus, and/or relating your budget to results, this class is for you. For more information, please visit http://www.theabrahamsgroup.com/Courses_Peformance_Based_Management.htm
    
    
14. The next Net School Spending Workshop will be held on Friday afternoon, August 6, 2010 in Yarmouth, MA. This class will provide you with an informal setting to learn about the Chapter 70 formula and how your final FY11 net school spending numbers are calculated. If you want to get away or if you want to learn your numbers, come to Yarmouth this summer. For more information, visit http://www.TheAbrahamsGroup.com/Courses_Yarmouth_Final_Spending.htm
    
    

OTHER EVENTS

The CitiStat phenomenon hits Massachusetts. The City of Somerville with the assistance of Mark Abrahams in conjunction with the Kennedy School of Government and the Rappaport Institute is implementing SomerStat, performance measurement and performance budgeting as a way to Manage for Results. For more information, visit http://www.theabrahamsgroup.com/SomerStat.htm.

The Government Accounting Standards Board has issued a new Research Report entitled "Reporting Performance Information: Suggested Criteria for Effective Communication". The purpose of this special report is to provide guidelines to state and local governments to enhance the production of external accountability reports through use of sixteen suggested criteria. These criteria were developed by studying state and local governments currently using performance measures and studying the work of other national and international organizations. Each criterion includes the purpose, a description, the rationale for such a criterion, and several examples from existing performance and accountability reports. The report highlights performance measurement within a performance management or Managing for Results context. Mark Abrahams is a contributor to this Report. For a direct link, visit http://www.seagov.org/sea_gasb_project/suggested_criteria_report.pdf.

The Government Finance Officers Association has recently emphasized performance management by issuing two recent recommended practices. The first is Using Performance Measurement in a Performance Management or Managing for Results capacity. For a direct link, visit http://www.gfoa.org/services/rp/budget/budget-performance-management.pdf. The second is Costing Government Services; that GFOA recommends that governments calculate the full cost of the different services they provide. For a direct link, visit http://www.gfoa.org/services/rp/budget/budget-measuring.pdf.

With support from the Alfred P. Sloan Foundation, the Association for Government Accountants is launching the Certificate of Excellence in Service Efforts and Accomplishments Program that evaluates performance reports at the state and local level. The purpose of the reviews will be to evaluate how well the government or other organization informs the public about its performance, consistent with the suggested criteria issued by the GASB. The review is not intended to evaluate the quality of the government or its performance. Rather, the focus is entirely on the report's usefulness to the public and other decision-makers who have a stake in the effectiveness of the government's services. Mark Abrahams is an SEA Program Reviewer. For a direct link, visit http://www.agacgfm.org/performance/sea/.

Managing for Results -- performance based management, including strategic and program planning, performance measurement and management, service efforts and accomplishments reporting and activity based costing and management.

Budgeting for Results -- activity based, program based and performance based budget projects in Massachusetts and nationally along with rate setting studies.

Accounting for Results -- accounting implementations in Massachusetts and nationally.

Auditing for Results -- audits of performance information, the Compliance Supplement, Student Activity Accounts and the like.

Courses -- Announcing the course and workshop schedule for the spring of 2008. Click here for further details.

GASB 34 Implementation -- the first GASB Statement No. 34 implementation in the country and the first Massachusetts municipal early implementation.