Kentucky County Clerks Association 2002 Fall Conference

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Kentucky County Clerks Association 2002 Fall
Conference

• Auditor of Public Accounts
• Edward B. Hatchett, Jr.
• Discussion Leader
• Rob Ovesen
• Division of Quality Assurance
• and Consultation

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GASB 34 Reporting Model

• New Reporting Model for State and Local
  Governments
• New requirement to report Capital Assets on
  Financial Statements
• To provide a more complete representation of the
  operations of the county to the taxpayers

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County Clerk Capital Assets

• The County Clerks audit report is a specific
  audit of the fee account and does not include
  assets
• The capital assets of the clerks and sheriffs
  office will be included in the overall financial
  statements of the county

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What are Capital Assets?

• Capital Assets are assets that have a useful life
  greater than one year

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Capital Asset Examples

• Equipment
• Furniture
• Copiers
• Microfilming Equipment
• Computers

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Capitalization Policy

• The county will establish a capitalization policy
• This sets a threshold for reporting capital
  assets
• Inventory below the threshold amount should still
  be tracked for internal control purposes

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Capitalization Thresholds

• Example
• Equipment Capitalization Threshold - 1,000
• Purchase of 2 computers X 1,500 each 3,000
  (include in Capital Asset Inventory)
• Purchase of 2 file cabinets X 250 each 500
• Does not meet Capitalization Threshold
• Would not include in Capital Asset Inventory
• Include in Inventory for internal control purposes

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Valuation of Assets

• Value Capital Assets at historical cost (original
  cost or purchase price)
• Use the fair market value of donated items at the
  time of donation
• Can also include installation expenses, such as
• Computer Network Installation

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Elements Neededfor Capitalization

• Original purchase price or fair market value of
  donated items
• Date the asset was placed into service
• Estimated useful life
• Salvage value (if any)

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Inventory Spreadsheet

• Submit spreadsheet of inventory to County
  Treasurer at June 30

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Additional Information

• GASB 34
• www.kyauditor.net
• Click on the GASB 34 button for additional GASB
  34 information and training materials
• GASB 34 Team e-mail link
• or Call 1-800-KYALERT and ask for the GASB 34 Team

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Web Auto Registration Renewal

• www.kyrenewal.com
• Allows for online auto registration renewal
• Current online registration renewals are limited
  to passenger cars and 6000 lb. trucks covered by
  participating insurance companies
• (page 1 and 2 of 15)

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How does this affect the clerk?

• Clerks will treat the web renewal the same as a
  mail-in renewal
• Main changes for the clerk will be in accounting
  for state and clerk fees not actual
  registration
• (page 3 of 15)

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How do you collect registration fees?

• Online registrants will pay all fees and taxes to
  the state by credit card
• The state deducts the amount of the web
  transactions from the weekly state fees to be
  remitted on the adjusted weekly AVIS Recap Report
• (page 14 of 15)

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How does web registration work?

• Step 1
• The registrant will go online and pay the Motor
  Vehicle Tax and the Registration Fee with a
  credit card

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How does web registration work?

• Step 2
• The morning batch report will include the Web
  Renewal Request Report with any web renewal
  transactions from the previous day
• (page 4 of 15)

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What does the clerk do?

• Step 3
• The clerk will enter the transaction into the
  AVIS system
• A reminder will be sent from the State if the
  transaction is not entered into the AVIS system
• AVIS will automatically code the record as WEB
  under Remarks
• WEB will also be indicated on the registration
  certificate to indicate insurance was verified
  online under Remarks
• (page 5 and 6 of 15)

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What does the clerk do?

• Step 4
• The clerk will print the registration certificate
  and mail with the new decal to the registrant

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What does the clerk do?

• Step 5
• The clerk will record the receipt on the Daily
  Check-out Sheet
• For those with Point-of-Sale systems, the receipt
  will be processed as a credit card payment
• For type Select Web Transaction
• (page 7 of 15)

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How does the clerk report the web transaction?

• Step 6
• The web transaction will be included in the Daily
  Activity Report from AVIS on the following day
• Clerk postage must be added manually to checkout
  totals for AVIS
• Totals for web transactions will be reported
  separate from non-web transactions
• (page 8, 9 and 10 of 15)

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How does the clerk report the web transaction?

• Step 7
• The weekly reports are printed from AVIS
• Web activity will be included on the weekly
  report but reported separate from non-web
  activity
• Web activity will be included as a regular
  transaction in the itemized transactions showing
  fees collected on the weekly report
• (page 11, 12, and 13 of 15)

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How does the clerk report the web transaction?

• Step 8
• Fees remitted to the State will be totaled on the
  Weekly AVIS Recap Report less the web fees after
  adjustments for any voided or corrected
  transactions
• Ad Valorem Tax will not be affected
• The actual amount will still be remitted to the
  state monthly
• (page 14 of 15)

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How does the clerk complete the Quarterly Report?

• Step 9
• Quarterly Report
• An adjustment will have to be made to the
  Quarterly Report adding the amount of the web
  transactions to the Disbursements
• This is necessary to reconcile to the bank
  statement
• All the receipts will roll up to the Quarterly
  Report as normal
• (page 15 of 15)

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