APA Update CUAV Annual Conference _____________________________________ April 25, 2016 Martha S. Mavredes Auditor of Public Accounts
Discussion Areas • Implementation of GASB 68 • Changes to NCAA Agreed Upon Procedures • 2015 General Assembly Session • 2016 General Assembly Session • Results of FY2015 audits • Upcoming changes to audits of SFA/R&D • Upcoming changes for Fiduciary Activities WWW.APA.VIRGINIA.GOV Page 2
IMPLEMENTATION OF GASB 68 WWW.APA.VIRGINIA.GOV Page 3
Implementation of GASB 68 • APA audited GASB 68 Schedules for VRS, SPORS, JRS, and VaLORS – Only reports on our website for Teachers, Political Subdivisions and entities in the State plan that have a CPA firm auditing their financial statements • APA issued an attestation report on management’s assertions regarding the census data WWW.APA.VIRGINIA.GOV Page 4
my VRS Navigator • Integrated System intended to manage employee data and calculate VRS benefits • Business rules facilitate determination of VRS benefits • Driven by HR transactions • Manages member accounts and benefits for >300,000 members at >1,000 employers participating in 4 pension plans and 4 other employee benefit plans WWW.APA.VIRGINIA.GOV Page 5
my VRS Navigator Data Flow – New hire keyed into the HR system • The HR system may interface with the payroll system, but some agencies may have to dual key – The changes are either keyed into my VRS Navigator or the agency uploads through a batch file – my VRS Navigator generates a bill each month following the contribution confirmation WWW.APA.VIRGINIA.GOV Page 6
Reconciliation Required • Purpose: to ensure data is properly reflected in my VRS Navigator for administration of VRS benefits – Reconcile my VRS Navigator contributions due to contributions charged in payroll system – Reconciliation process may differ based upon the size and complexity of the employer WWW.APA.VIRGINIA.GOV Page 7
Decentralized Agencies • Monthly: submit a file with new enrollments and data changes Batch for existing members • Manually update changes in my VRS Navigator as required by the agency’s internal policies Online and procedures WWW.APA.VIRGINIA.GOV Page 8
Official Systems of Authority Human my VRS Resource Navigator System Payroll System WWW.APA.VIRGINIA.GOV Page 9
Reconciliation Steps • The my VRS Navigator precertification process requires two parts • Review changes Review the • Ensure changes are Snapshot accurate Reconcile • Contributions Payroll • Benefit plan withholdings Information WWW.APA.VIRGINIA.GOV Page 10
Part 1 • Generate the Snapshot – Agencies can drill down through the my VRS Navigator application to review the data – Option to download to excel and review all employees – Option to review changes only • The snapshot includes the totals for the plan(s) – Agencies may participate in more than one plan; consider each plan (VRS & VaLORS) WWW.APA.VIRGINIA.GOV Page 11
Part 2 • Consider payroll after gaining an understanding of HR and my VRS Navigator – Payroll must be reconciled with my VRS Navigator – Remember: my VRS Navigator processing frequency is monthly and payroll processing frequency varies WWW.APA.VIRGINIA.GOV Page 12
Contribution Confirmation: Payment • VRS must receive the payment by the 10 th of the subsequent month • Methods of Payment – ACH Debit (preferred) – ACH Credit – CIPPS • Payment is immediately scheduled following confirmation – Generally ACH Credit has a longer processing time compared to ACH Debit WWW.APA.VIRGINIA.GOV Page 13
Contribution Confirmation: Concepts Receipt of the best data possible by the due date – Does not mean perfect data – Some member records require correction through data fix requests • Employer should not hold confirmation until records are corrected • Corrections will be retro-active to origination when completed WWW.APA.VIRGINIA.GOV Page 14
Access • Role security was designed and established to accommodate organization of various size and complexity • Only mandatory roles – Primary Administrative Authority (PAA) – VRS Administrator – Security Administrator (SA) WWW.APA.VIRGINIA.GOV Page 15
Census Data • Group 1 – SSN, Name, Date of Birth, Gender • Group 2 – Organization Name, Employment Status, Start Date, End Date, Job Name – Creditable Compensation, Service Credit, Contributions WWW.APA.VIRGINIA.GOV Page 16
CHANGES TO NCAA AGREED UPON PROCEDURES WWW.APA.VIRGINIA.GOV Page 17
NCAA Agreed Upon Procedures • What Hasn’t Changed – Due January 15 th each year – All Division I institutions, Division II institutions once every three years WWW.APA.VIRGINIA.GOV Page 18
NCAA Agreed Upon Procedures • What Has Changed? – New line items and new definitions for existing line items – Additional information added to supplement the Schedule – New reporting requirements (will show certain line item variance explanations in AUP report) – Materiality thresholds WWW.APA.VIRGINIA.GOV Page 19
GENERAL ASSEMBLY SESSIONS WWW.APA.VIRGINIA.GOV Page 20
2015 General Assembly Session HB 1897 HB 1897 • Requires a standardized reporting framework for Athletics revenues and expenses • Requires institutions to maintain subsidy percentage below a certain level WWW.APA.VIRGINIA.GOV Page 21
Subsidy Percentage • Subsidy Percentage represents the portion of institutional funding/student fees allocated for athletics as a percentage of total athletics revenue WWW.APA.VIRGINIA.GOV Page 22
What are the percentages? WWW.APA.VIRGINIA.GOV Page 23
When is this effective? • We will begin to report on subsidy percentages for the fiscal year ended June 30, 2017 • The NCAA Reporting Framework used to ensure consistent calculation is published on the APA website http://www.apa.virginia.gov/reports/NCAA Financial Reporting Guidance.pdf http://www.apa.virginia.gov/reports/NCAA Schedule Template Formatted.xlsx WWW.APA.VIRGINIA.GOV Page 24
NCAA Reporting Framework WWW.APA.VIRGINIA.GOV Page 25
When will we audit/report? • No change for Division I institutions • Division II institutions each year during financial statement – Once out of every three years will be performed in Fall for reporting before January 15 th deadline • Division III institutions each year during financial statement audit WWW.APA.VIRGINIA.GOV Page 26
2015 General Assembly Session § 4-9.04 IMPLEMENT JLARC RECOMMENDATIONS Effective Date • Institutions are not required to follow all recommended guidance for FY15 • Institutions should follow guidance for FY16 as a trial run for FY17 WWW.APA.VIRGINIA.GOV Page 27
2015 General Assembly Session, continued § 4-9.04 IMPLEMENT JLARC RECOMMENDATIONS a. The Boards of Visitors at each Virginia public four-year higher education institution, to the extent practicable, shall: 1. require their institutions to clearly list the amount of the athletic fee on their website's tuition and fees information page. The page should include a link to the State Council of Higher Education for Virginia's tuition and fee information. The boards should consider requiring institutions to list the major components of all mandatory fees, including the portion attributable to athletics, on a separate page attached to student invoices; 2. assess the feasibility and impact of raising additional revenue through campus recreation and fitness enterprises to reduce reliance on mandatory student fees. The assessments should address the feasibility and impact of raising additional revenue through charging for specialized programs and services, expanding membership, and/or charging all users of recreation facilities; WWW.APA.VIRGINIA.GOV Page 28
2015 General Assembly Session, continued 3. direct staff to perform a comprehensive review of the institution's organizational structure, including an analysis of spans of control and a review of staff activities and workload, and identify opportunities to streamline the organizational structure. Boards should further direct staff to implement the recommendations of the review to streamline their organizational structures where possible; 4. require periodic reports on average and median spans of control and the number of supervisors with six or fewer direct reports; 5. direct staff to revise human resource policies to eliminate unnecessary supervisory positions by developing standards that establish and promote broader spans of control. The new policies and standards should (i) set an overall target span of control for the institution, (ii) set a minimum number of direct reports per supervisor, with guidelines for exceptions, (iii) define the circumstances that necessitate the use of a supervisory position, (iv) prohibit the establishment of supervisory positions for the purpose of recruiting or retaining employees, and (v) establish a periodic review of departments where spans of control are unusually narrow; and, WWW.APA.VIRGINIA.GOV Page 29
Recommend
More recommend
