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HomeMy WebLinkAbout670-13 Oppose Mandate for Monthly Audits RESOLUTION NO. 670-13 A RESOLUTION OF THE CITY OF ZEPHYRHILLS,FLORIDA URGING MEMBERS OF THE FLORIDA LEGISLATURE TO OPPOSE LEGISLATION THAT WOULD MANDATE THE USE OF A UNIFORM CHART OF ACCOUNTS FOR ALL GOVERNMENTAL ENTITIES TO REPORT FINANCIAL INFORMATION. WHEREAS, in 2011 the Florida Legislature passed and the Governor signed Senate Bill 1292 requiring the chief financial officer to recommend uniform chart of accounts for reporting financial information for all state agencies, local governments, educational entities, and entities of higher education; and WHEREAS, each entity of the state and local government is different, serves a different purpose and uses a different basis of accounting; and WHEREAS,the purpose of the Chart of Accounts Project is to develop a uniform chart of accounts to be used by all governmental entities for reporting assets, liabilities, equities, revenues and expenditures; and - f WHEREAS,the draft uniform chart of accounts will impact over 2350 governmental entities; and WHEREAS, each of the impacted entities are currently accountable to-the electorate, citizens and users of their services; and WHEREAS, Florida governments are required to meet many reporting requirements, both at the state and federal level, including reporting to the Florida Department of Financial Services, Florida Equal Employment Opportunity, Florida Unemployment Compensation, Florida Retirement System, Federal Affordable Care Act, and payroll taxes and W-2 informatio to the Internal Revenue Service; and WHEREAS,the monthly reporting may be prepared on a basis of accounting that may differ from the basis of accounting used to prepare the year-end audited financial statements and that the monthly information will not be validated; and WHEREAS,the new level of detail required at the object level for monthly reporting is far greater than the level of detail reported either in the audited financial statements or in the Annual Financial Report required pursuant to the provisions of Section 218.32(1)(a), Florida Statutes; and WHEREAS,there will be no attempt to validate any of the data before it is posted for public viewing and this results in a high risk that the data will be inaccurate,,invalid or incomplete; and WHEREAS,the establishment of a uniform chart of accounts without requiring uniformity in other areas such as in the basis of accounting and in the accounting treatment of various transactions in itself will not provide users with any meaningful comparisons between organizations; and WHEREAS, regardless of the approach taken to implement the provisions of Section 215.89, Florida Statutes, significant resources will be required to achieve the goals of the chief financial officer; and WHEREAS,the cost of implementing the Uniform Chart of Accounts far exceeds any benefit that taxpayers may accrue; and WHEREAS, we believe that transparency and accountability of the use of public funds t citizens and other stakeholders is paramount but that it must be done while simultaneously limiting the burden to the entities and preserving the autonomy of each entity of government; and WHEREAS,we believe that legislation should be enacted that prescribes minimum desired transparency reporting by local governments, leaving it to the local governments to include such information on their web sites, and that such legislation should not impose significant financial burdens on local governments. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ZEPHYRHILLS, FLORIDA THAT: Section 1. The Zephyrhills Mayor and City Council hereby urge members of the Florida - - Legislature to oppose legislation that would mandate the use of a uniform chart of accounts for all governmental entities to report financial information. Section 2. A copy of this Resolution shall be sent to the Governor of the State of Florida; the President of the Florida Senate; and the Speaker of the Florida House of Representatives. PAS1Q4D ADOPTED by the City Council of the City of Zephyrhills, Florida, this 18th D� of°No\tm`1er 2013yc rte _ Attest: �z Linda D-.Boan, City Clerk Lance . Sm , oiirmitPresident Daniel W. Burgess, Jr., Mayor Approved as to legal form and legal content for the sole r ce-f - rhills osep . Poblick, City Attorney