Uniform Chart of Accounts ( UCoA )

1. Uniform Chart of Accounts(UCoA) Collegedale, January 23, 2015 Jackson, February 4, 2015 Memphis, February 5, 2015 Morristown, February 24, 2015 Nashville, March 5, 2015 March 31 April 10

2. Innovation http://local.ohiocheckbook.com/

3. Data Act • Coming to a City like yours! • Use of XBRL?

5. Now Trending • Tennessee Counties and Cities were ranked by Standard & Poors (10/17/14) to be in the Top 5 in the Nation in terms of local government financial stability: • One Key Factor - Transparency and accountability - Very strong transparency with strong comparability of financial information. In our view, these local governments operate within a framework that requires very strong transparency and comparability of financial information. State statutes require that cities and counties produce annual financial audits that comply with generally accepted accounting principles, increasing the likelihood that timely reports will be produced using uniform methods for improved interpretation.

6. Welcome Thank You for Your Participation

7. Team Leader Iris Haby, CPA Chart of Accounts Team Leader Auditor IV Division of Local Government Audit Iris.Haby@cot.tn.gov 615.401.7878

8. Project Director Jerry E. Durham, CPA, CGFM, CFE Assistant Director Division of Local Government Audit Jerry.Durham@cot.tn.gov 615.401.7951

11. Change

12. Managing Change! • Websites • Facebook Pages • Text Messages/Call Trees • Twitter Accounts • Security • CMFO’s • Reporting Under ARRA • Reporting to EMMA (Electronic • Municipal Market Access)

13. Managing Change! • Why?? • Public Trust!

14. Our Mission: To improve the quality of life for all Tennesseans by making government work better.

15. The Big Question

16. Timeline

17. The Plan in a Nutshell Jason, …. As you can see, we have members from every size of city represented. It is our intent to contact each member of the committee as soon as we begin our review of the input we have already received from the Cities during our state-wide presentations. We have gathered a lot of information. After we have performed this review, we will convene the committee and advise the committee about our findings (i.e. the unique issues, proposed changes, proposed updates to current Chart of Accounts, other issues). We will get the committees input, then proceed to work again. When we have a proposed chart of accounts we will convene the committee again. When we have a final proposed chart of accounts we will expose this document for comment to all cities. We will receive the cities input, revise again, then propose a final draft of the chart of accounts. The whole process will take anywhere from one to two years.

18. Your Committee Volunteers • Volunteer List

19. Urban Myth? • In August 1995 the story was retold by a paramedic as follows: • One of our trucks was recently called to respond to a GSW to the head. The victim called 911 via her cellular phone. She told the operator that she just sat down in her car and someone shot her in the back of the head. She told the dispatcher that she was afraid to move because she could feel brain tissue hanging out the back of her head. • When the crew arrived, they found the woman sitting in the front seat. Her groceries were in the back seat. The Medics found dough where the woman thought that she felt brain tissue. A can of biscuit dough in the shopping bag exploded and hit her in the back of the head. Needless to say, the woman was greatly relieved to find that out.

20. Urban Myth? • Fact or Urban Myth? • The Comptroller wants all governments to operate exactly alike. • FACT • Or • MYTH

21. Urban Myth? • Fact or Urban Myth? • This only being done to help the Comptroller’s Office do their audits. • FACT • Or • MYTH

22. Urban Myth? • Fact or Urban Myth? • This will be expensive. • FACT • Or • MYTH

23. Urban Myth? • Fact or Urban Myth? • Certain small and large cities will be exempt. • FACT • Or • MYTH

24. Urban Myth? • Fact or Urban Myth? • Utilities have not been considered. • FACT • Or • MYTH

25. Urban Myth? • Fact or Urban Myth? • We haven’t had a chance to provide input. • FACT • Or • MYTH

26. Reasons to Implement • Reasons

27. Survey Results • In October of 2014, we took a survey of those attending the TGFOA Winter Conference. • The Overall Results were very positive.

28. The Audience • Discussed with TSCPA • Discussed with TGFOA • Discussed with MTAS • Contacted Software Vendors • Discussed with TML

29. Transparency and Accountability for Governments • TAG Website http://www.comptroller.tn.gov/TAG/

30. Examples from TAG

31. Examples from TAG

32. Examples from TAG

33. Examples from TAG

34. Data Mining • Because we have a County Uniform Chart of Accounts: • Look at details of any account(s) • Select a sample • Look at Payroll • Run a Benford Analysis • Look at Journal Entries • Look at amounts over a certain amount • Other…

35. Can we Talk? but How Why

36. We need your help • Encourage Software Companies to comply. • Take a look at the UCoA and see what changes are needed.

37. We Need Your Help? • We need your help to inform other municipalities. • We need your help to revise the current UCoA. Give your suggestions. • We need Volunteers for the Committee that will ultimately decide upon the revised UCoA. Please notify Iris of your willingness to serve by email.

38. Thank you for your interest, presence, questions, and comments. • Feel free to contact us with additional questions or comments. • Iris is the lead person on the project.

39. Contact Information • Jerry E. Durham • Assistant Director • Division of Local Government Audit • Jerry.Durham@cot.tn.gov • 615.401.7951 • Iris Haby • Project Team Leader • Auditor IV • Division of Local Government Audit • Iris.Haby@cot.tn.gov • 615.401.7878