Association of
Government Accountants
The
Central Kentucky Chapter
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August 2002 - Volume XXIV,
Issue 4 |
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Association of
Government Accountants
The
Central Kentucky Chapter
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August 2002 - Volume XXIV,
Issue 4 |
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Chapter Meeting Minutes
July 10, 2002
By Phil
Nally, Acting Secretary
The Central Kentucky Chapter met at the Office Pub and Deli on
July 10, 2002. There were 20 members
and guests present. Program chair
Margaret Hurst introduced the speaker, William Hanes, Esquire, Executive
Director of the Kentucky Retirement Systems, at 12:15 PM.
The three systems administered by the Kentucky Retirement
Systems (KRS) are: Kentucky Employees Retirement System (KERS), County
Employees Retirement System (CERS), and State Police Retirement System
(SPRS). There are 256,000 members in
the system, with a $60 million per month payroll.
The three systems are Qualified Public Defined Benefit Plans
established under 26 USC Section 401(a) of the Internal Revenue Code. The difference between Defined Benefit
(401a) and Defined Contribution Plans (401k) is that 401a plans pay benefits
based on a formula, while 401k plans pay benefits based on contributions and
earnings on those contributions. Each
member of KRS contributes a percentage (set by statute) of their salary to
their account, which accrues interest annually. The member’s employer also pays a percentage directly to the
retirement allowance account, which pays all monthly benefits and financial
obligations of the systems.
Mr. Hanes discussed the 15 payment options available to new
retirees. Members with 20 years of
service have 100% of their medical insurance paid. There are 31 options available to purchase service credit. He stated that Kentucky has better benefits
than those offered in most states.
The actuarially ideal funding for a retirement system should be
80%. KERS is currently 125% funded, but
is subject to market changes.
There being no other business, the meeting was adjourned.
PDC 2002 - What a Success!
AGA’s 51st Annual PDC Transforms the
Government Enterprise
Using
themes such as enhancing security, improving accountability and navigating
change, speakers at AGA’s 51st Annual Professional Development Conference &
Exposition spent three and a half days giving more than 1,300 attendees the
tools they need to continue “Transforming the Government Enterprise.”
The conference was held in Atlanta July 7-10. The technical committee, chaired
by John E. “Jack” Carson, CGFM, assembled an impressive list of the government
financial management profession’s top leaders. Sessions covered everything from
the President’s Management Agenda to implementation of GASB Statement No. 34 to
e-government and communication.
After Opening Ceremonies, Comptroller General of the United States David M.
Walker, CPA, kicked off the conference with a forceful message about the state
of the accounting profession and government accountability. With the accounting
profession reeling from a spate of recent scandals involving Enron, WorldCom,
Arthur Andersen and others, Walker acknowledged his own nine-year tenure as an
Arthur Andersen partner. Andersen was the “gold standard” among accounting
firms for more than 100 years, he said. “It can take decades to build a
reputation and it can take very little time to lose it,” he said.
“I am ready to see some action across
the board,” Walker said. “Civil penalties are not enough. Nothing will focus
the mind quite like being behind a set of bars.” PDC attendees loudly applauded
in agreement. Unfortunately, the 95 percent-plus partners and employees of
Andersen who had nothing to do with the Enron case are victims of the firm’s
demise, he said. Laws and accounting principles, he said, should represent the
floor and not the ceiling in the range of acceptable behavior. “You do what’s
right,” he said.
“It’s not rocket science.” Walker called on government to seize the opportunity
to lead by example. “We need to demonstrate proudly to the American people what
they are getting for their money,” he said. “We in government can and should
lead the way on this. Maybe if we do, the private sector will follow. Let’s
show them how to do it.”
As
head of the U.S. General Accounting Office (GAO), Walker practices what he
preaches. The agency has recently issued new auditor independence standards
that were in the works long before the recent scandals, and GAO has developed a
new strategic plan, the highlights of which fit on a single piece of paper. “We
can basically run the enterprise based on this one piece of paper,” he said.
He referred to GAO’s High Risk List, which highlights
areas of government in need of transformation. The US Postal Service, which was
added this year, is a “microcosm of the challenges other agencies face,” he
said, since it does not have a business plan that reflects 21st century
realities. He repeated his refrain that the “High Risk list brings light, light
brings heat and heat brings action.”
Walker called for cultural transformation in government by “changing how we do
business.” The path we are currently on, he said, is a “train wreck” with
two-thirds of the federal budget on “auto-pilot,” with untouchable entitlements.
In considering the federal budget, Walker said, “It is not about whether we can
afford it today, but whether we can sustain it tomorrow.”
The August
Guest Speaker
By
Margaret Hurst,
Program Coordinator
The August guest speaker will be Jill LeMaster, CPA and
Executive Director of the Kentucky Executive Branch Ethics Commission (KEBEC).
Ms. LeMaster is a graduate of Eastern Kentucky University where
she received a B.A. in Business Administration. She also completed additional
graduate work at the University of Kentucky. She obtained her CPA license in
September 1980. Ms. LeMaster has worked for the KEBEC since May 1993. Prior to
that time, she worked as an audit supervisor and training coordinator with the
Auditor of Public Accounts.
When: Thursday
–
August
1, 2002
Speaker: Jill LeMaster
Topic: Ethics In KY Government
Where: The
Office Pub & Deli
Time: 11:30-1:00p.m.
Lunch & Speaker
Cost: $3.00/person
The Benefits of Attending an AGA
Conference
For more than 50 years, top leaders in government
financial management have participated in AGA's annual conferences. These
leaders know that AGA conferences offer:
Join the leaders that already
know the benefits of
participating in
AGA conferences!
National
Leadership
Conference
AGA is pleased to present the first National Leadership Conference
in February 2003 as part of its ongoing effort to advance government
accountability. This conference will bring together the top leaders from all
levels of government to discuss the issues most pressing to government
accountability professionals in a new and challenging environment. It offers an
opportunity to bring together a variety of members and speakers to hear
discussions that will equally benefit federal, state and local government
professionals. The conference will be held at the Ronald Reagan Building, International
Trade Center in Washington, DC on February 20-21, 2003. If you need more information about the National Leadership
Conference please contact Jennifer Root, CMP, Conferences & Meetings
Director at jroot@agacgfm.org
or at 800-242-7211. Or refer to the AGA website at National Leadership Conference 2003
Order GASB 34
Teleconference Videotapes
NASACT/AGA
Teleconference Experiences in Preparing, Auditing, and Using Financial
Statements under GASB Statement No. 34 Videotapes of the LIVE broadcast of the
May 8, 2002 teleconference, hosted by the National Association of State
Auditors, Comptrollers and Treasurers, the Association of Government Accounts,
and the Government Accounting Standards Board. Price: $119.00 Shipping and
handling: $6.00. Please refer to the AGA website for further information:
Newsletter
Notes: If you know of any news, promotions, presentations, awards,
certifications, retirements, etc. affecting our chapter members, please send
your comments and suggestions to the newsletter editor, Jennifer Harper at AGAKYUSA@aol.com.
The Treasurer’s Report
By Rick Waddle, Treasurer
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Central
Kentucky Chapter |
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Financial
Report |
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For The Month
Ended June 30, 2002 |
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Central Account
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Education
Account |
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Beginning Bank Balance
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4,593.70 |
Beginning Bank
Balance |
500.00 |
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Revenue: |
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Revenue: |
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Interest on checking
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3.82 |
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0.00 |
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Total Revenue
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3.82 |
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0.00 |
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Expense: |
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Expense: |
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0 |
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Ending Bank Balance |
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4,597.52 |
Ending Bank
Balance |
500.00 |
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Chapter
Executive Committee
Office Officer E-mail Phone President Cindy Upton (502) 564-8100 President-Elect Roy Hunter (502) 695-1040 Past
President Phil Nally (502) 564-7750 Secretary Mary
Montgomery (502) 573-0050 Treasurer Rick Waddle (502) 564-7750 Program Coordinator Margaret Hurst (502) 564-8100 Education/Training Lee Ann Watters (502) 695-1040 Newsletter Editor Jennifer
Harper (502) 573-0050 Historian Linda Sagraves (502) 573-0050 Community Service Rex Gregory (502) 564-7334 Attendance Don Fields (502) 564-7334 Membership Coordinator Amy Small (502) 573-0050 CGFM Coordinator Jonathan Smith (502) 564-2532 Website Development
Coordinator Dan Flaherty (502) 564-8890 (502) 291-3889 WEBSITE To be announced
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AGA Central
Kentucky Chapter PO
Box 576 Frankfort,
KY 40602-0576 |
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POSTAGE |
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ADDRESS
CORRECTION REQUESTED |
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