CCP 05-30-2000 - Laserfiche WebLink

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. . . City of Arden Hills March 31, 2000 Page Nine Infrastructure Assets GASB Statement No. 34 applies prospectively to all general infrastructure assets beginning at the effective dates of the Statement (or earlier, if the statement is implemented earlier). Governments are also encouraged to apply the Statement retroactively to all existing major general infrastructure assets at that time. However, phase 1,2 governments need not retroactively report those assets until calendar year 2006, 2007 - four years after their required implementation of Statement No. 34. Phase 3 governments are encouraged but not required to report major general infrastructure assets retroactively. If there are inadequate records of the actual historical cost of existing general infrastructure assets, governments can estimate historical cost. They also may limit retroactive application to only those major general infrastructure assets that were acquired or significantly reconstructed, or that received significant improvements, in fiscal years ending after June 30, 1980. The above gives you some general information on GASB Statement No. 34 implementation. We intend to educate and work with all of our clients in developing a plan to implement this new statement. As a result of implementing this statement, there will no doubt be additional fees for our services. These expected increases will most likely result from additional time spent in the areas of (I) training, (2) account structure modifications to provide infonuation necessary to prepare fmancial statements, (3) accounting for fixed assets, infrastructure assets and related depreciation, and (4) fmancial statement preparation. The more that the City staff can do in the areas of fixed asset accounting and proper account structure will help in reducing these costs. We will help you as nmch as possible to accomplish this. * * * .. * * This report is intended solely for the use of management and council. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. Our exantination would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. March 31,2000 Minneapolis Office ABDO, ABDO, EICK & MEYERS, LLP Certified Public Accountants D~". ,.. . '" :. It. f"'''' /' ~"<-.~1: ...~yi'J~i, ,:,,'~~:;" ",~ " ,"