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February 2009 - NASACT - The National Association of State


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									                                    NASACT news
keeping state fiscal officials informed
                                     Volume 29, Number 2
                                                                                                                February 2009

Comptrollers Strive to Keep Up With Changes and Challenges
By Kim Garnero, Director, Alaska Division of Finance, and President of the National Association of State Comptrollers

                                                    W       hat a difference a year makes.
                                                            When Paul Carlson handed me
                                                    the gavel in Denver last March, I thought
                                                                                                    comprised of people with the same
                                                                                                    responsibilities in other states become
                                                                                                    more evident. I have reached out to this
                                                    that the effort to stabilize funding for        network many times over the years to
                                                    the Governmental Accounting Standards           answer the question “how do other states
                                                    Board would consume my term as                  do that?” with targeted e-mails that
                                                    president of the National Association           produce results quickly. In addition, the
                                                    of State Comptrollers. Instead, that            NASACT Web site is a wonderful source
                                                    issue, like many, has been postponed            of information useful to comptrollers.
                                                    as we each grapple with the impacts of          On the site you’ll find resources like the
                                                    economic downturn closer to home.               newest edition of State Comptrollers:
                                                       These are challenging times for state        Technical Activities and Functions. The
                                                    comptrollers. Reduced budgets are               survey instrument was improved for the
                                                    causing us to rethink our priorities and        2008 edition, and initial portions were
                                                    our methods for getting the job done.           posted in December, with the long-term
                                                    The economic stimulus legislation may           chapters coming soon.
Join NASC President Kim
                                                    solve some of these issues, but it brings           The dedicated professional staff
Garnero in Annapolis in March                       with it a host of new reporting and             is the key to NASC’s ability to serve
The 2009 NASC Annual Conference                     accountability responsibilities that we are     member needs. This year we say “Happy
will be held in Annapolis, Maryland,                just beginning to understand.                   Retirement” to Pat O’Connor who has
on March 25-27. A number of other                      Fortunately, NASC is there to help.          been the face of NASC for many years.
meetings will be held in conjunction                As we are squeezed between higher               Her humor and wisdom will be missed.
                                                    expectations and reduced resources              Fortunately, Kinney Poynter’s leadership
with the conference. See page 2 for
                                                    for accomplishing them, the benefits
additional details.                                                                                           (continued, next page)
                                                    of belonging to a national organization

NASACT Works With GAO and Industry                                            On Tuesday, February 17, NASACT members participated in
                                                                          a briefing on the new law which was coordinated by the National
Partners to Address Stimulus Bill                                         Association of State Chief Information Officers.
                                                                              On Thursday, February 26, state auditor members of

F   ollowing the signing of the American Recovery and
    Reinvestment Act of 2009 last week, there was a frenzy of
activity as NASACT, other state associations, and federal agencies/
                                                                          NASACT will participate in a meeting with the U.S. Government
                                                                          Accountability Office. The meeting is intended to be an information
                                                                          sharing opportunity between the GAO and state auditors regarding
groups worked to determine the ramifications of the new law.               the new law and how GAO can best coordinate with state and local
   NASACT and several other associations sought comments                  auditors. GAO will discuss its proposed approach to fulfilling its
from members to identify “risk areas” of particular note within           review and audit requirements under the new law and solicit from
the act. NASACT has received comments from members and                    state auditors their views and perspectives.
compiled them into a document that will be combined with                      The ARRA is a very large piece of legislation, and NASACT
comments from associations representing state budget officers,             members are encouraged to communicate with key stakeholders
chief information officers and purchasing officers to develop a             in their respective states to begin planning implementation.
comprehensive list of risk alerts. This document will be shared           NASACT will be monitoring activities associated with the new
with members of each state association as well as the National            law closely and working to keep members apprised of related
Governors Association.                                                    issues and opportunities. (See page 4 for more on ARRA.)

NASACT News − February 2009                                                                                                            page 1
NASC President’s Article (continued from page 1)
skills include transition planning, so Kim O’Ryan is prepared and     Alaska to share Idaho’s experience in building and maintaining
willing to assume the role of director for our organization. We       administrative systems of mutual interest. This would have never
welcome Kim with confidence that the same standard of excellent        have happened without NASC.
service will continue.                                                    So I hope to see you in Annapolis next month, and do not
   The teleconference training events are a significant value,         forget about the 2009 NSAA/NASC Joint Middle Management
providing relevant education in a convenient format at low cost,      Conference in Nashville in April. Information we bring back
plus CPE for attendees. The various workgroups and information        from these events can more than pay for the cost of attendance.
sharing groups continue to help us learn from each other, and             In closing, I want to extend my thanks to those who served
I am grateful to the individuals who have volunteered their           with me on the Executive Committee this year: Past President
time to lead them. Of particular note are Eric Berman, deputy         Paul Carlson (NE), who chaired the nominating committee; Vice
comptroller of Massachusetts, who drug us up the learning             President Calvin McKelvogue (IA), who along with Secretary/
curve on OPEB and is now doing the same for derivatives;              Treasurer Clark Partridge (AZ) co-chaired the Task Force to
David McDermott, state controller of Colorado, who stepped up         Examine Revenues: Brenda Bolander (OK) who along with Tom
in his first year to co-chair the Committee on Accounting and          Sadowski (MO) co-chaired the Middle Management Conference
Financial Reporting with Mike Moody, director of Michigan’s           Program Committee; Richard Eckstrom (SC), who chaired the
Office of Financial Management; Tom Sadowski, former                   advisory committee for the Technical Activities and Functions
director of Missouri’s Office of Administration, who led the ERP       survey; and Kim Wallin (NV), who chaired the Committee on
Information Sharing Group, providing a wealth of information          Outreach.
for those states still gearing up to take the plunge; and Merideth        The administrative work of NASC is necessary, but not
Hackney, chief of Idaho’s Bureau of Systems Administration,           burdensome because of the enthusiasm and professionalism
and Leila Malatesta, director of Mississippi’s Office of Fiscal        of the staff and these volunteers. Please consider serving on a
Management, whose work on the Multi-State Consortium on               committee or workgroup next year to keep NASC viable and
Internal Control is producing some useful tools for assessing risk.   increase the benefits you receive from the association.
   There are obviously many advantages to NASC membership
available to us right in our offices, but attendance at the                                          ***
conferences is also a significant benefit. The sessions are                    Kim Garnero is president of NASC and director of
consistently pertinent and worthwhile because the program                    the Division of Finance in Alaska’s Department of
committees use previous evaluations to help shape the future              Administration. Ms. Garnero has been involved in NASC
conferences. However the real value comes from getting to                 since 2000 and has served on various committees. She is
know the other members and their staffs. This past year, Idaho               also a member of NASACT’s Executive Committee.
State Controller Donna Jones hosted a small group from

       Sign Up Today for NASC 2009 in Annapolis, Maryland                                            March 25-27, 2009

      V   isit www.nasact.org for complete details, including registration, about the 2009 NASC Annual Conference. The
          conference will be held at the Loews Annapolis Hotel. Join President Kim Garnero and conference host, Peter
      Franchot, Maryland comptroller, for this annual event!

      Additional Meetings to be Held in Conjunction with NASC 2009
          March 24: NASACT Executive Committee Meeting, 8:30 a.m. - 12:00 noon
          March 24: Government Benchmarking Forum, 1:00 - 3:00 p.m.
          March 24: NASC’s Committee on Accounting and Financial Reporting, 3:15 - 4:00 p.m.
          March 24: NASC’s Executive Committee, 4:15 - 5:00 p.m.

      Call for Roundtable Topics
      Do you have topics for discussion at the always-popular roundtable sessions at the upcoming NASC conference? If so,
      e-mail your topics to Pat O’Connor at poconnor@nasact.org.

      Call for Resolutions
      Resolutions for consideration at the upcoming NASC annual conference should be sent to Resolutions Committee Chair
      Trisha Neely (DE) at trisha.neely@state.de.us or to Glenda Johnson gjohnson@nasact.org.

NASACT News − February 2009                                                                                                    page 2
Association Notes

    NSAA is Now Accepting Excellence in                              answer the survey’s questions, and also to inform other
    Accountability Award Entries                                     comptrollers or chief financial officers within their states
                                                                     about the survey. The results of the survey will be presented
    The NSAA Excellence in Accountability Awards Committee           at the NASACT annual conference this coming August.
    is now accepting submissions for the 2009 awards. Awards             State comptrollers may participate in the study by
    will be given in three categories: performance audit (small),    visiting www.nasact.org. The deadline to respond to the
    performance audit (large) and special project. This year,        survey is April 1, 2009.
    entries will be accepted for projects completed in the last
    two calendar years (2007-08). Entries must be received by        Scholarships Available for Middle
    5:00 p.m. Eastern time on Friday, February 27, 2009. For         Management Conference
    additional information, e-mail Sherri Rowland at srowland@
    nasact.org.                                                      NSAA’s Auditor’s Education Foundation Committee is
        NSAA is also seeking judges for the awards program.          currently accepting applications for scholarships for the
    Those interested in participating as a judge should contact      2009 NSAA/NASC Middle Management Conference
    Ms. Rowland at the address above by Monday, March 2.             scheduled for April 20-22, 2009, in Nashville, Tennessee.
                                                                     Applications are due by Friday, February 27, 2009.
                                                                         To request the application and get details on applying
    NSAA Names New Executive Committee                               for a scholarship, contact Sherri Rowland at srowland@
    Member                                                           nasact.org.

    Janice Mueller, state auditor of Wisconsin, has been
    selected by NSAA’s Executive Committee as its newest
                                                                     NSAA Seeks Comments on AICPA
    member. Ms. Mueller replaces John Morgan, former                 Exposure Drafts
    comptroller of the treasury in Tennessee. Per NSAA’s
    bylaws, the Executive Committee has authority to replace         The American Institute of Certified Public Accountants
    committee members when needed.                                   has released several exposure drafts recently. NSAA’s
                                                                     Auditing Standards and Reporting Committee seeks your
                                                                     comments for inclusion in association responses to the
    NSAA Announces New Performance                                   following EDs:
    Audit Information Sharing Group
                                                                        Proposed Statement on Auditing Standards,
    The NSAA Performance Audit Committee will be hosting                Compliance Audits (comments due to NSAA on March 25).
    quarterly information sharing conference calls on topics of
    interest to performance auditors. The first call is scheduled        Proposed Statements on Auditing Standards, Risk
    for Wednesday, March 11 at 3:00 p.m. Eastern time. Audits           Assessment (comments due to NSAA on March 31).
    of school data quality and school violence will be the topics
    of the first call.                                                   Proposed Statements on Auditing Standards,
        If you are interested in joining the distribution group to      Required Supplementary Information; Other
    receive notices about the quarterly calls, please indicate          Information in Documents Containing Audited Financial
    your interest to Sherri Rowland at srowland@nasact.org.             Statements; and Other Information in Relation to the
                                                                        Financial Statements as a Whole (comments due to
                                                                        NSAA on April 10).
    State Comptrollers are Invited to
    Participate in CFO Study                                            Proposed Statement on Auditing Standards, Initial Audit
                                                                        Engagements, Including Reaudits − Opening Balances
    NASACT, along with the Association of Government                    (comments due to NSAA on April 24).
    Accountants and the Canadian Financial Management
    Institute, is sponsoring a study on issues impacting state          Proposed Statement on Auditing Standards,
    comptrollers and chief financial officers in government. This         Consideration of Laws and Regulations in an Audit of
    is the 14th annual survey of its type; however, this is the         Financial Statements (comments due to NSAA on April 24).
    first year that NASACT has been invited to co-sponsor the
    study. Grant Thornton LLP is conducting the survey for the          Proposed Statement on Auditing Standards,
    sponsors.                                                           Consideration of Fraud in a Financial Statement Audit
        The survey asks a series of forward-looking questions to        (Redrafted) (comments due to NSAA on April 24).
    identify the top financial issues and concerns of government
                                                                     Comments on these exposure drafts may be sent to Sherri
    at all levels. All responses are anonymous. The survey is not
                                                                     Rowland at srowland@nasact.org.
    lengthy and should take no more 30 minutes to complete.
    State comptrollers are encouraged to take a few minutes to

NASACT News − February 2009                                                                                                    page 3
News From Washington
Stimulus Bill Signed Into Law,                                              (where applicable), program source, and an award title
                                                                            descriptive of the purpose of each funding action.
Now What?                                                                   The location of the entity receiving the award and the primary
                                                                            location of performance under the award, including the city,

P    resident Barack Obama signed the nearly 1,100-page
     American Reinvestment and Recovery Act of 2009 on
February 17, providing significant funding to state government.
                                                                            state, congressional district, and country.
                                                                            A unique identifier of the entity receiving the award and of
                                                                            the parent entity of the recipient, should the entity be owned
Now states are wondering how to manage all the funds coming                 by another entity.
their way and how to achieve compliance with required reporting             Any other relevant information specified by the Office of
in an expeditious and efficient manner.                                      Management and Budget.
    To move forward quickly with implementation and to meet
the accountability and transparency objectives of the act, the U.S.          The act also requires performance data such as the number
Office of Management and Budget released the first of a two-               of jobs a particular funding stream creates or maintains. Further,
phase guidance to federal agencies for carrying out programs and         as part of the stringent accountability provisions, the act
activities of the Recovery Act. The first guidance document, which        establishes a Recovery Transparency and Accountability Board
will be discussed here, was released just one day after the President    charged with oversight of recovery dollars. The board is to be
signed the bill. The second more detailed guidance document will         comprised of OMB’s deputy director of management as the chair;
be released within 30 to 60 days after the date of enactment. The        inspectors general of the Departments of Agriculture, Commerce,
Phase 1 guidance is aimed at addressing what agencies will need          Education, Energy, Health and Human Services, Homeland
to report regarding spending and expenditure data and how that           Security, Transportation, Justice, Treasury; and Treasury’s
data will be made available on the new recovery.gov Web site. Of         inspector general for tax administration. OMB will initially
particular note to state governments is reference to requirements        monitor and coordinate Recovery Act activities until the board is
and time lines for prime recipient reporting.                            in place; however, the board will eventually take responsibility
    Starting 10 days after the end of each calendar quarter and          for assuring that the accountability objectives of the law are
beginning on July 10, prime recipients will be required to provide       satisfied. This responsibility includes making sure that funds are
extensive reporting on Recovery Act funds. The reporting is              awarded and distributed in a prompt, fair, and reasonable manner;
required only of prime recipients, but also includes reporting           uses of the funds are transparent and the uses are reported clearly,
by the prime recipient of sub-awards. For example, a state that          accurately and timely; fraud, waste and abuse of funds are
receives direct funding from a federal agency and then awards            minimized; funds are managed to avoid delays and cost overruns;
part of the money to a municipality would be required to report          and program goals are achieved and measured.
on both the funds that flow directly to the state and also on                 The act also provides for a Recovery Independent Advisory
the funds it has awarded to the municipality. The guidance               Panel to be comprised of five individuals with a background
further provides that reporting is required only for discretionary       in economics, public finance, contracting, accounting or other
appropriations and does not apply to mandatory or entitlement            relevant field to be appointed by the President. The main function
programs unless specifically required by OMB.                             of the panel is to report to the board and make recommendations on
    Although the Phase 1 guidance does not provide how a prime           preventing fraud, waste and abuse in relation to the recovery funds.
recipient is to report the data, it does state that the reporting            Many questions, including those related to performance
must include the following elements in addition to those                 data, require more specific guidance, and NASACT is awaiting
elements prescribed by the Federal Funding Accountability and            additional information to assist the membership in complying with
Transparency Act (FFATA):                                                the act. Specific issues of note for NASACT members include:
   Total amounts of recovery funds.                                         The role of the state auditor in oversight of the recovery funds
   Amounts obligated or expended to projects and activities                 and how state auditors will handle the significant increase
   including unobligated allotment balances.                                in the number of programs that could be covered under the
   A detailed list of project and activities to include (1) name            Single Audit as a result of the additional funding.
   of project or activity, (2) description of project or activity, (3)      The role of the state comptroller, or in some cases the state
   estimate of jobs created or retained as a result of the project          treasurer, in providing internal control and risk management
   or activity and for infrastructure investments the cost, (4)             over the Recovery Act funding.
   rationale for funding and (5) name of agency contact.                    Additional funding for the increased workload.
The FFATA elements for subcontracts or subgrants awarded by                 NASACT continues to meet with other organizations and both
the prime recipient include:                                             OMB and the U.S. Government Accountability Office in an effort
   The name of the entity receiving the award.                           to address the many questions that require further information.
   The amount of the award.                                              NASACT will keep members apprised as further guidance on
   Information on the award, including transaction type, funding         how to handle the stimulus dollars is released.
   agency, the North American Industry Classification System
                                                                                               (continued, next page)
   code or Catalog of Federal Domestic Assistance number

NASACT News − February 2009                                                                                                         page 4
News From Washington
Red Flags Rule: Does It Apply to                                       government arena, includes any entity that defers payments
                                                                       for goods or services. Background from the Federal Trade
Government?                                                            Commission on the rule provides that the acceptance of credit
                                                                       cards as a form of payment does not in and of itself make an entity

N      ASACT has recently had several questions from members
       regarding a new Federal Trade Commission regulation
known as the “Red Flags Rule” and whether it applies to
                                                                       a creditor. An example of a government entity that defers payment
                                                                       for goods or services would be a municipal-owned utility.
                                                                          If an entity is determined to be a creditor, then it must
governments. The short answer is yes, it does apply, but the           determine if it is a creditor with a covered account. A covered
qualifying instances may be few. The Red Flags Rule is a new           account is defined in the rules as an account that a “creditor
requirement to fight identity theft.                                    offers or maintains, primarily for personal, family or household
    Essentially, the rule requires that financial institutions and      purposes, that involves or is designed to permit multiple
“creditors with covered accounts” put in place identity theft          payments or transactions.” Some examples are credit card
programs that identify, detect and respond to patterns, practices      accounts, mortgage loans, automobile loans, margin accounts,
or specific activities that may indicate identity theft. While the      cell phone accounts, utility accounts and checking or savings
rule does not specifically tell entities how to set up a red flags       accounts.
program, it sets forth four basic steps that should be used to            We encourage those who believe that they may have
establish a program. Those steps include: (1) identifying red flags     transactions covered by the rule to consult with legal counsel
(i.e., warning signs of identity theft), (2) detecting the red flags,   to determine which transactions or operations are subject to the
(3) preventing and mitigating identity theft and (4) reviewing and     rule. It would appear that there are definite linkages to colleges
updating the program periodically.                                     and universities that provide student loans and to municipal
    The first thing that governments must determine is whether          governments that operate utilities; however, linkages to state
or not they must comply with the rule. Does the government             governments may be few.
meet the definition of “creditor,” and if so, does it have covered         More information on the rule is available at www.ftc.gov/
accounts? Creditor, within the context of the non-profit or             opa/2007/10/redflag.shtm.

Stimulus Bill Signed, What Now?                                           the provision is reflected in the income tax withholding
                                                                          schedules during the balance of 2009.
(Continued, from page 4)
                                                                       The IRS’s withholding tables can be found at www.irs.gov/pub/
“Making Work Pay Tax Credit” Will Result in                            irs-pdf/n1036.pdf.
Revised Withholding Schedules
                                                                       Stimulus Bill Includes One Year Delay in 3%
   The stimulus package includes a refundable tax credit of up
                                                                       Withholding Requirement
to $400 for individuals/$800 for families. The credit will be
calculated at a rate of 6.2% of earned income that would phase            After a final push by both business and government groups to
out at a rate of 2% for taxpayers with adjusted gross income in        include full repeal of Section 511 of the Tax Increase Prevention
excess of $75,000 single/$150,000 for married couples filing            and Reconciliation Act of 2005 (P.L. 109-222) in the final
jointly. Taxpayers can take advantage of the new credit by             stimulus package, only a one-year delay was achieved, pushing
reducing the amount of tax withheld from their paychecks or by         the implementation date for the onerous provision from January
claiming a credit on their tax returns.                                1, 2011, to January 1, 2012. Section 511 requires federal, state,
   According to language from the conference report:                   and local governments to withhold three percent on payments
                                                                       made for most goods and services.
   The provision will require additional paperwork for                     NASACT and other state and local groups continue to push
   taxpayers and additional processing burdens for the                 for repeal of the withholding requirement and will work to add
   Internal Revenue Service. It is expected that taxpayers             co-sponsors to the two bills in the 111th Congress to repeal the
   will need to complete additional worksheets and or forms            provision, S. 292 and H.R. 275.
   to compute the amount of the credit. Taxpayers may also                 NASACT wishes to thank all who reached out to their
   wish to adjust their income tax withholding by filing the            Congressional delegations in an effort to have full repeal
   appropriate forms before the end of 2009. The IRS is                included in the stimulus package. While many on Capitol Hill
   anticipated to revise income tax withholding schedules              support repeal of the provision, ultimately the high cost for full
   and publish new schedules. These revised income tax                 repeal led to the decision to delay the implementation rather
   withholding schedules should be designed to reduce                  than repeal the measure.
   taxpayers’ income tax withheld for each remaining pay
   period in the remainder of 2009 so that the full benefit of

NASACT News − February 2009                                                                                                       page 5
News From Washington

Coming in July: Changes to                                           Information Dissemination
Disclosure                                                              The SEC decision on continuing disclosure also provides
                                                                     for free public access to continuing disclosure documents filed
                                                                     by issuers through the EMMA. The EMMA Web site currently
T   he Securities and Exchange Commission in December
    approved changes to continuing disclosure filing
requirements for municipal securities issuers that go into effect
                                                                     houses official statements submitted by underwriters, advance
                                                                     refunding documents, and real-time and historic trade data for
July 1, 2009. On that date, municipal bond issuers, their agents     municipal bonds. Beginning July 1, 2009, continuing disclosure
and obligated parties will begin filing continuing disclosure         documents submitted to EMMA will be matched to the associated
documents at a new, single designated location operated by the       security’s primary market documents and trade data to provide
Municipal Securities Rulemaking Board (MSRB). Currently              investors with a single source of consolidated disclosure and
these documents are filed at multiple nationally recognized           trade price information.
municipal securities information repositories.                           EMMA will make all continuing disclosure documents
   Beginning July 1, issuers will electronically submit continuing   submitted to the system available to the public within 15 minutes
disclosures such as annual financial information and material         of submission. Neither the EMMA system nor the MSRB will
event notices to the MSRB’s Electronic Municipal Market Access       change or adjust submissions. The documents will be posted
system, known as EMMA (www.emma.msrb.org). EMMA was                  on the EMMA Web site exactly as sent by the issuer or obligor.
created by the MSRB, approved by the SEC, and is supported by        However issuers and obligors will have the opportunity to review
numerous municipal securities groups, including NASACT.              submitted documents and resubmit documents to EMMA to
                                                                     correct any errors.
What NASACT Members Need to Know                                        Users of EMMA can search, view and download all documents
                                                                     related to a particular issue or security. All information submitted
   The change in filing location for continuing disclosure            by issuers will be displayed chronologically on EMMA for each
documents does not impose additional obligations on issuers          security.
and obligated persons. There also are no costs associated with
EMMA filings. Submissions to EMMA will satisfy issuers’               What’s Next
submission obligations to multiple information repositories
under their existing continuing disclosure agreements and                This spring the MSRB will create a pilot submission program
multiple filings will no longer be necessary. Issuers and obligors    on EMMA for municipal issuers and obligors. At this time,
should, however, check with their disclosure or bond counsel to      they will have the opportunity to create submission accounts on
learn more about the specifics of existing continuing disclosure      EMMA, learn more about the submission process and even begin
agreements. Meanwhile, all new agreements should make clear          to test the new electronic submission system.
that continuing disclosure submissions will be filed with EMMA.           In the meantime, issuers and obligors should familiarize
   Additionally, issuers and obligors will be able to submit past    themselves with their continuing disclosure agreements to
annual financial filings and material event notices to EMMA,           fully understand when annual financial information and other
as well as voluntary filings not contemplated under continuing        continuing disclosures must be filed. Remember that beginning
disclosure agreements.                                               July 1, 2009, all such filings will be made to EMMA, at www.
   Continuing disclosure documents are to be submitted               emma.msrb.org.
electronically to EMMA as portable document format (PDF) files.
   For issuers and obligors with less than $10 million in                                            ***
municipal securities outstanding, annual financial and operating
information that previously would have been provided to                  To find out more information, visit www.emma.msrb.org.
investors upon request will, for new issues on or after July 1,          Questions about this article may be directed to NASACT’s
2009, now be submitted to EMMA.                                                   Washington Office at (202) 624-5451.

Revised FISCAM Released                                                 The FISCAM Web site (www.gao.gov/special.pubs/fiscam.
                                                                     html) includes links to the revised FISCAM and downloadable
                                                                     versions of Appendices I-III. Future updates to the FISCAM,

T   he revised Federal Information System Controls Audit
    Manual (FISCAM) was released on Monday, February
2, 2009. NASACT members, working through Robert Dacey,
                                                                     including any implementation tools and related materials, will
                                                                     also be posted to the site. The revised FISCAM is available only
                                                                     in electronic form and supersedes the prior version, AIMD-
chief accountant at the U.S. Government Accountability Office,        12.19.6, issued in January 1999 and reformatted in January 2001.
contributed comments during the development of the revised               Questions about the revised FISCAM may be directed to
FISCAM.                                                              FISCAM@gao.gov or to Mr. Dacey at (202) 512-7439.

NASACT News − February 2009                                                                                                     page 6
News From Around the Nation

NASACT Welcomes New State                                                the first director of the council in 1975 and is serving in his ninth
                                                                         term as director. He currently has the longest continual service as
Officials                                                                the director of a program evaluation agency in the United States.
                                                                         Schroeder helped to found the National Legislative Program
                                                                         Evaluation Society which is a staff section to the National
                     South Carolina                                      Conference of State Legislatures.

                     O    n January 12, 2009, South Carolina’s
                          Legislative Audit Council appointed
                     Thomas J. Bardin, Jr., as the director of the

                     council. Bardin will begin his term on March                               Effective in January 2009, Gary M.
                     2, 2009.                                                                Pfeiffer was elected to serve as Delaware’s
                         Bardin is currently the director of planning                        secretary of finance, a position that also
and quality assurance at the state’s Department of Social Services                           serves as the state’s chief financial officer.
where he manages agency performance audits and federally                                        Pfeiffer spent nine years as DuPont’s
mandated quality assurance functions. Prior to his work at DSS,                              CFO, overseeing almost $30 billion in annual
Bardin worked at the S.C. Legislative Audit Council from 1979                                revenue. His 32-year career with DuPont
to 1997. While at the council, Bardin worked on audits including                             also included three years of service in Brazil,
A Review of the Relationship Between USC and its Foundations             four years in Japan, and various other assignments in financial,
and USC Discretionary Spending and Auto Insurance in South               corporate and business management. He retired from DuPont in
Carolina.                                                                2006. Pfeiffer serves on the boards of directors of three publicly
   Bardin is a native of Beaufort, South Carolina, and has an            traded companies: Talbots, Inc., Quest Diagnostics, Inc. and
M.P.A. and B.A. from the University of South Carolina.                   Internap Network Services, Inc. He received his M.B.A. and his
   Bardin will replace George Schroeder, who will retire on              bachelor’s degree at the College of William and Mary.
Friday, February 27, 2009. Schroeder is retiring after 33 years             Pfeiffer replaces Richard Cordrey, who had served as
as director of the Legislative Audit Council. He was appointed           secretary of finance since February 2005.

The FAF Names a New Chair, New                                           mutual fund companies, and is a governor of the Financial Industry
                                                                         Regulatory Authority. A graduate of Dartmouth College, Mr.
Trustees                                                                 Brennan also holds an M.B.A. from Harvard University.
                                                                             The FAF also announced that Jeffrey J. Diermeier, Cynthia P.
                                                                         Eisenhauer, and Dennis M. Kass have been appointed to the FAF
O     n February 12, 2009, the Financial Accounting Foundation
      announced the election of John J. Brennan as the new
chairman and a member of its board of trustees. Mr. Brennan
                                                                         board. The appointments were completed under the new nominating
                                                                         and appointment procedures adopted by the FAF Trustees in 2008.
succeeds outgoing FAF Chairman Robert E. Denham, who has                 Each of the appointments is for a five-year term.
served as chairman since 2004 and as a member of the FAF board               Jeffrey J. Diermeier served as president and chief executive
of trustees since 2003.                                                  officer of the Chartered Financial Analyst Institute until his
    Mr. Brennan will be the first to serve as FAF chairman under          retirement at the end of 2008. Previously, Mr. Diermeier was
the revised governance structure approved by the board in 2008.          global chief investment officer at UBS Global Asset Management,
The chairman’s role has been expanded to reflect the additional           overseeing the management of more than $400 billion in assets.
responsibilities resulting from the increasing strategic needs of            Cynthia P. Eisenhauer is a consultant supporting state and
the organization. The chairman will focus primarily on strategic         local governments in strategic planning and budgeting, as well
initiatives, provide vision and leadership to the board of trustees in   as an adjunct professor at Iowa State University in its Master of
achieving the FAF’s enhanced oversight activities, consult regularly     Public Administration Program. Previously, she served as chief of
with chairs of the Financial Accounting Standards Board and the          staff for Iowa Governor Thomas Vilsack from 2004 to 2007. Ms.
Governmental Accounting Standards Board, and work closely with           Eisenhauer’s appointment to the board of trustees fills a seat
the FAF president.                                                       designated for a governmental trustee.
    Mr. Brennan currently serves as chairman of Vanguard Group,              Dennis M. Kass is chairman and chief executive officer of
Inc., and each of the Vanguard mutual funds, a position he has held      Jennison Associates, an institutional, mutual fund and variable
since 1998. Mr. Brennan served as Vanguard’s chief executive             annuity investment management firm owned by Prudential.
officer from 1996 until August, 2008. Mr. Brennan previously              Previously, Mr. Kass was vice chairman and chief fiduciary
served as an FAF trustee from 1998 to 2003. Among other                  officer at JP Morgan Fleming Asset Management, where he was
investment industry activities, Mr. Brennan was chairman of the          responsible for the oversight of the firm’s fiduciary and client
Investment Company Institute, a trade organization representing          activities.

NASACT News − February 2009                                                                                                          page 7
Register Now for Middle Management 2009!

T    he National State Auditors Association and the National
     Association of State Comptrollers are pleased to announce
the fourth annual Joint Middle Management Conference. The
                                                                        reservations at (615) 244-8200 and ask for the NSAA/NASC
                                                                        Joint Middle Management Conference group rate.
                                                                            The cut-off date for this special rate is March 29, 2009.
conference features tracks tailored to address the training needs       After this date, rooms will be offered on a rate- and space-
of middle management staff in the offices of state auditors and          available basis only.
state comptrollers, including staff
specializing in the areas of audit and                                                              Getting There
   Several committees are working             Register Today!                                           The Doubletree Hotel Nashville is
on the conference: the NSAA Auditor                                                                 located ten miles from the Nashville
                                              The 2009 Middle Management Conference                 International Airport. Information
Training Committee, chaired by Lynn
                                              will feature the following tracks:
Canton, New York, and the NASC                                                                      about taxi and shuttle service can be
Middle Management Committee,                       Audit (2 ½ days - April 20-22)
                                                                                                    found at www.flynashville.com/home.
chaired by Brenda Bolander, Oklahoma.              20 credits of CPE                                cfm?CFID=3340879&CFTOKEN=39
   The conference is designed to                   $425                                             197831.
provide at least a two-day event for all
participants.                                      Finance (2 days - April 20-21)                   Registration and Additional
                                                   16 credits of CPE
Conference Hotel
                                                                                                         The planning committees are
                                               To register, visit the Calendar of Events
    The Doubletree Hotel Nashville                                                                    excited about the program agendas
                                               online at www.nasact.org.
is ideally located in the heart of                                                                    and the prospect of bringing together
Nashville, just minutes away from                                                                     middle management staff from
the airport and steps away from                                                                       different areas in state government for
Tennessee’s state capitol building and many downtown Nashville networking and sharing of challenges and solutions.
attractions. At the Doubletree Hotel Nashville attendees will                Registration is currently available, and a draft agenda is posted
experience the rich culture and heritage of Music City U.S.A. and on NASACT’s Web site at www.nasact.org in the Calendar of
the true meaning of southern hospitality!                                 Events section. Questions about the conference may be addressed
    The special negotiated rate is $124/single, $134/double, plus         to Pat O’Connor (poconnor@nasact.org) or Sherri Rowland
applicable taxes. To book a room, please call the Doubletree              (srowland@nasact.org).

Mark Your Calendar: GASB 54 Audio                                       be issued as GASB Statement No. 54 in March.
                                                                            Watch for details on this audio conference coming soon. The
Conference, April 29                                                    training will offer two hours of CPE for those participating.
                                                                        NASACT’s audio conferences are a great way to earn low-cost

N   ASACT will hold its next audio conference on April 29,
    2009. The training event will cover the Governmental
Accounting Standards Board’s statement on Fund Balance
                                                                        CPE without having to travel.
                                                                            The audio conference is being co-sponsored by the
                                                                        Association of Government Accountants.
Reporting and Governmental Fund Type Definitions, which will

                                                                NASACT Holds Its First Webinar

                                                                O      n January 28, NASACT held its first Webinar, covering the
                                                                       topic of Ethics in Work and Life. Shown at left, Kinney Poynter,
                                                                NASACT’s executive director, and AJ Puryear, NASACT’s IT/Web
                                                                manager, monitoring the logistics of the Webinar. Over 440 people
                                                                participated in the training event. Visit the online calendar of events at
                                                                www.nasact.org to find dates and information about upcoming training

NASACT News − February 2009                                                                                                           page 8
Calendar of Events Register for these events at www.nasact.org.
March 24       NASACT Executive Committee, Annapolis, MD                                         NASACT News
March 25-27        NASC Annual Conference, Annapolis, MD
April 20-22     NSAA/NASC Joint Middle Management Conference, Nashville, TN
                                                                                               FEBRUARY 2009
April 27-28     Tennessee Training Seminar, Chattanooga, TN                                     R. Kinney Poynter
April 29      Audio Conference: GASB No. 54                                                     Executive Director

May 4-5       Tennessee Training Seminar, Nashville, TN                                       Cornelia Chebinou
May 7-8       Tennessee Training Seminar, Jackson, TN                                       Washington Office Director
May 11-12        Tennessee Training Seminar, Morristown, TN
                                                                                                Glenda Johnson
June 17-19      NSAA Annual Conference, Savannah, GA                                         Communications Manager
August 15-19      NASACT Annual Conference, Dearborn, MI
                                                                                          National Association of State
September 14-16        NASACT Training Forum, Portland, OR                                   Auditors, Comptrollers
September 29-October 2         NSAA IT Workshop and Conference, Harrisburg, PA                  and Treasurers

                                                                                               Headquarters Office
                                                                                        449 Lewis Hargett Circle, Suite 290
Register Now for the 2009 NSAA Annual                                                       Lexington, KY 40503-3590
                                                                                        P (859) 276-1147, F (859) 278-0507
Conference − Savannah, Georgia
                                                                                                Washington Office
By Donna Maloy, Conference Manager                                                      444 N. Capitol Street, NW, Suite 234
                                                                                              Washington, DC 20001

                                                    G     eorgia State Auditor and
                                                          National State Auditors
                                                    Association President Russell
                                                                                        P (202) 624-5451, F (202) 624-5473

                                                    Hinton invites you to attend the              www.nasact.org
                                                    2009 NSAA Annual Conference
                                                    to be held in Savannah, Georgia,            NASACT Officers
                                                    June 17–19, 2009.
                                                       Savannah is a city where,              Thomas H. McTavish
                                                    whoever you are or wherever you                  President
                                                    are from, you will be welcomed           Auditor General, Michigan
                                                    with true Southern hospitality.
                                                    Hip and historic, robust and                Glen B. Gainer, III
refined, Savannah is where you will find amazing architecture and rich history–along              First Vice President
                                                                                            State Auditor, West Virginia
with global sophistication, funky nightlife and fabulous food.
                                                                                                  Nancy K. Kopp
The Conference Hotel                                                                          Second Vice President
                                                                                             State Treasurer, Maryland
   This year’s annual conference will be held at the Hyatt Regency Savannah.
Uniquely situated on the River Front Plaza, the Hyatt Regency offers unequaled                   Barbara J. Hinton
access to the historic district, shops, entertainment and business centers. The Hyatt                 Secretary
Regency is offering a special rate of $175/night plus applicable taxes. To reserve a      Legislative Post Auditor, Kansas
room, call (912) 238-1234 and ask for the National State Auditors Association annual
conference rate. This rate will be available until the cutoff date of May 15, 2009.            Martin J. Benison
                                                                                            Comptroller, Massachusetts
The Conference Program
                                                                                         The next issue of NASACT News
   The conference program committee is working on a slate of topics that will cover      will be published in March 2009.
issues facing state auditors such as the state of state budgets. The program agenda     To submit articles, photos or ideas,
will be posted to NASACT’s Web site as it becomes available.                            contact Glenda Johnson by March
      Online registration is now open. Detailed information and registration can be       13 at gjohnson@nasact.org or
found on NASACT’s Web site at www.nasact.org. Questions may be addressed to                  phone at (859) 276-1147.
Donna Maloy at dmaloy@nasact.org or (859) 276-1147.

NASACT News − February 2009                                                                                                page 9

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