HomeMy WebLinkAboutResolutions - 2002.04.18 - 26705MISCELLANEOUS RESOLUTION 102102 April 18, 2002
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: DEPARTMENT OF MANAGEMENT AND BUDGET / FISCAL SERVICES DIVISION -
SUPPLEMENTAL PAY FOR GASH #34 IMPLEMENTATION
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS in June 1999, the Government Accounting Standards Board (GASB)
adopted Statement #34, Basic Financial Statements and Management's Discussion
and Analysis - for State and Local Governments; and
WHEREAS this new accounting pronouncement, which is being called "...the
most significant change to occur in the history of governmental financial
reporting", will have a substantial impact on both the form and the content
of the information included in Oakland County's financial statements; and
WHEREAS specifically, GASB #34 will require the Fiscal Services
Division to produce the following new statements, in addition to the current
requirements:
• Management's Discussion and Analysis
• Government - wide Statement of Activities
• Government - wide Statement of Net Assets;
The latter two statements must be prepared using full accrual accounting and
an economic resources measurement focus, which is a significant departure
from current governmental accounting and will require the restatement of a
number of items including capital assets, infrastructure (new), and long-term
liabilities; and
WHEREAS in addition to the new requirements, the current requirements
regarding producing individual fund statements, notes to the financial
statements, required supplementary information, and reporting on component
units, have all been expanded; and
WHEREAS Oakland County is required to develop and produce GASB #34
compliant financial statements for the fiscal year ending September 30, 2002,
these financial statements must be prepared by March 31, 2003; and
WHEREAS implementation of GASB #34 will require an extraordinary effort
on the part of financial staff across the country, many units of local
government are engaging outside professional assistance to implement the new
financial statements. It is projected that the cost of such professional
services for a governmental unit of our size is approximately $60,000; and
WHEREAS rather than contract for the implementation, the Fiscal
Services Division has formed a GASB #34 Implementation Committee, consisting
of 11 members, to guide the implementation; and
WHEREAS the formation of this committee will allow the Division to
build internal expertise and avoid the higher cost of contracting for
professional services in this effort; and
WHEREAS the employees assigned to the GASH #34 Implementation Committee
are not being relieved of their normal daily activities, rather GASB #34
implementation is an additional duty that must be undertaken; and
WHEREAS members of the GASH #34 Implementation Committee have prepared
themselves for this task by participating in extensive national and state
wide training in this area; and
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Dingeldey absent.
WHEREAS in order to properly compensate the eleven (11) members of the
GASB #34 Implementation Committee for the extraordinary effort which is
required to implement GASB #34, and for their individual commitment to
receive the proper training to produce GASB #34 compliant financial
statements, it is recommended that each member of the GASB #34 Implementation
Committee receive supplemental pay of $2,000, to be paid on a prorated bi-
weekly basis, for the period April 1, 2002 - March 31, 2003; and
WHEREAS the total cost of this recommendation equals $27,700, of which
$22,000 is the supplemental payment and $5,700 is related fringe benefits;
and
WHEREAS not only is the supplemental pay recommendation only
approximately half the cost of contracting for professional services to
implement this required change, in house implementation will increase the
knowledge base of the county staff; and
WHEREAS this supplemental pay recommendation reflects a specific dollar
amount for a specific time period, thus it does not change the base pay of
any employee receiving the benefit, nor does it permanently increase the
County budget; and
WHEREAS due to the above considerations, favorability in the Fiscal
Services budget can be used to cover the cost of this recommendation, no
additional appropriation is required.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners approves paying members of the Fiscal Services Division GASB
#34 Implementation Committee a supplement in the amount of $2,000 each, for
the period April 1, 2002 through March 31, 2003, in order to properly
compensate them for the efforts required in this implementation phase.
BE IT FURTHER RESOLVED that the current Fiscal Services Division budget
will absorb the $27,700 cost of this time-limited, specific dollar amount
increase; no additional appropriation is required.
Chairperson, on behalf of the Finance Committee, I move adoption of the
foregoing resolution.
FINANCE COMMITTEE
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PPROVE REGOING RESOUT12111
OOK 3 Patt )1. SCA. tounty Executive Date
G. William Caddell, County Clerk
Resolution #02102 April 18, 2002
Moved by Douglas supported by Melton the resolution be adopted.
AYES: Buckley, Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas, Galloway, Garfield,
Gregory, Law, McPherson, Melton, Middleton, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever,
Suarez, Webster, Amos, Brian. (23)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true
and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on April 18, 2002,
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac,
Michigan this 18th day of April, 2002.