Although individuals will be representing their own governments, they may need to compromise their own interests to meet the main objective. The OFM forwarded its work plan, however the State operates in a different environment, with only one major accounting system and one set of financial statements. 34 Primary Issues Alexandra proposed five areas where the entities can start implementing the new statement. This is the only change that can be implemented now. Under the GASB Statement 34 the only one acceptable method of reporting cash flow is the direct method.
Entities using the indirect method can go ahead and make the change now.
Infrastructure Entities should start reviewing what type of record or information related to their infrastructure they have. It may be a good idea to hire a summer intern to review these records to help save costs and time. Some of the fiduciary funds will become the governmental funds and their new classification depends on the activities the funds support. Entities should take time now to look at their trust agreements to see how they will reclassify those funds in the future. Governments will also have to identify funds as either major or nonmajor for the fund financial statements.