Financial Accounting Foundation Seeks Support for GASB
November 1, 2006
Using the Federal Audit Clearinghouse's database of single audit filers, the FAF launched the “2006 GASB Support Fee” program. Issuers of audited financial statements who follow GASB were mailed a letter asking for a voluntary support amount linked to a threshold of federal award programs as identified in the database.
The letter was developed jointly by the National Association of State Auditors, Comptrollers and Treasurers (NASACT); the National Association of State Treasurers (NAST); and the Government Finance Officers Association (GFOA) in conjunction with the Financial Accounting Foundation (FAF).
Because virtually all member institutions are single audit filers, NACUBO expects all members that are public institutions to receive this letter. NACUBO is alerting members for several reasons:
1. To assist in industry advocacy efforts, NACUBO believes it is important for higher education to be recognized in all voluntary support drives. We encourage public institutions providing support to indicate on the remittance form that they are members of NACUBO.
2. Many public institutions already support GASB through an annual NACUBO support effort – usually in April. NACUBO plans to continue its annual efforts, however, since the work of the GASB is important, public institutions can provide additional support.
The FAF is responsible for the oversight, administration, and finances of both the Financial Accounting Standards Board (FASB) and its counterpart for state and local government, the Governmental Accounting Standards Board (GASB). The foundation also is responsible for selecting the members of both boards and their respective advisory councils. As a result of the Sarbanes-Oxley Act, the FAF collects mandatory payments from publicly traded companies to support FASB. Other entities that follow FASB accounting standards, including nonprofit organizations such as independent colleges and universities, will benefit from this support and are no longer asked to contribute.
The GASB, the body that sets accounting standards for government entities, including public colleges and universities, does not benefit from the new funding mechanism and continues to rely on voluntary financial assistance made to the FAF for its support.
NACUBO staff resource, Sue Menditto, Director, Accounting Policy.
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