The Governmental Accounting Standards Board (GASB) today issued Statement No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans and Statement No. 58, Accounting and Financial Reporting for Chapter 9 Bankruptcies. The Statements are intended to improve consistency in the measurement and financial reporting of other postemployment benefits (OPEB) such as retiree health insurance, and of the effects of municipal bankruptcy.

Statement 57 addresses issues related to measurement of OPEB obligations by certain employers participating in agent multiple-employer OPEB plans. (In agent multiple-employer plans, separate liabilities are calculated and separate asset accounts are kept for each participating government, rather than being administered and accounted for as a single plan as is done in a cost-sharing plan.) Statement 57 amends Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, and Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. Specifically, Statement 57:

• Enables certain agent employers to use the alternative measurement method, a less complex and potentially less expensive alternative to a full actuarial valuation
• Adjusts the requirement that a defined benefit OPEB plan obtain an actuarial valuation, in light of the change allowing more qualifying employers to use the alternative measurement method
• Clarifies that the same frequency and timing of determining OPEB measures are required for both agent multiple-employer plans and their participating employers.

Statement 58 provides guidance for governments that have petitioned for protection from creditors by filing for bankruptcy under Chapter 9 of the United States Bankruptcy Code. It establishes requirements for recognizing and measuring the effects of the bankruptcy process on assets and liabilities, and for classifying changes in those items and related costs.

“The stress that the current economic environment is putting on state and local government resources and the lack of existing financial reporting guidance made it necessary for the GASB to address the financial reporting issues associated with qualified local governments that file for bankruptcy protection under Chapter 9,” said Robert Attmore, chairman of the GASB.

The provisions of Statement 57 related to the use and reporting of the alternative measurement method are effective immediately. The provisions related to the frequency and timing of measurements are effective for actuarial valuations first used to report funded status information in OPEB plan financial statements for periods beginning after June 15, 2011. Statement 58 is effective for periods beginning after June 15, 2009. Retroactive application is required for all prior periods presented during which a government was in bankruptcy. Earlier application of both Statements is encouraged.

For information on obtaining Statements 57 and 58, log on to http://gasbpubs.stores.yahoo.net/publications-statements-of-standards.html.

There are many certifications such as the Certified Public Accountant (CPA), Certified Management Accountant (CMA), Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), and Certified Government Finance Officer (CGFO) available for practitioners in the finance and accounting industry to pursue. Each of these distinguished certifications indicates the person who achieved it has a specialized body of knowledge. To determine if a certification is right for us, we should ask ourselves some important questions such as: “Which designation(s) should I obtain?”;  “Which one(s) will benefit me the most?”; and “Why?”

What is the CGFO?

To answer these questions first we need to know what the various certifications represent. The focus of the CGFO program, conferred by the Florida Government Finance Officers Association, is to encourage a level of knowledge and professionalism in the field of government finance emphasizing areas specific to Florida local governments. The program also encourages development and maintenance of professional competence for practicing governmental finance officers. To achieve the CGFO designation, candidates must demonstrate a high level of competence by successfully completing a rigorous five-part examination, an Ethics and Law exam, and provide documentation that they meet the minimum education and experience requirements. The exams test knowledge in six broad subject areas: accounting and financial reporting, debt administration, financial administration, municipal budgeting, and treasury management.

How Does Certification Benefit You?

By attaining the CGFO designation, you will confirm your substantial knowledge of accounting, finance, and related fields such as budgeting, financial administration, debt, and treasury management. In addition to demonstrating your technical proficiency in these skills, you will prove your ability to integrate this information into the business decision process. The CGFO certification helps to differentiate yourself from other employees/job candidates by affirming your commitment to personal professional development, excellence, and lifelong learning. As the job market tightens, these “extras” become even more valuable.

Preparing for the certification provides an opportunity for you to assess and demonstrate your capabilities while expanding your knowledge base. Jon Svendsen, Fiscal Projects Coordinator, Brevard County, a recent recipient of this certification, supports this assertion saying:  “After 25 years in governmental accounting and finance I thought there was nothing new I needed to know. Boy, was I wrong. It was a great review of what I thought I knew, and also a great refresher course on what I need to know going into the future.”

 Being a CGFO also exemplifies your adherence to a strict code of ethics. While the CGFO certification does not guarantee you a better job, it does help position you for expanded career opportunities. Pursuing the certification identifies you as a motivated professional for hiring, recognition, and advancement purposes. More importantly, earning your CGFO designation gives you self-satisfaction - it enhances your self-confidence, your sense of accomplishment, and is a resume booster.

How Do I Get Started?

Please visit www.fgfoa.org and click on the CGFO link to learn more about the CGFO program. The eligibility requirements, as well as well as information to help you prepare for the exam such as the distribution of exam topics, the suggested reading materials list, and the availability of the review classes are all located at this site.

 So what are you waiting for? TAKE THE CHALLENGE!