GASB issues three new statements and sea proposal.

The Government Accounting Standards Board, in a surge of activity, issued final statements on three disparate issues--accounting for closed municipal landfills, university Pell grants and proprietary funds. It also exposed for comment a proposal for measuring government performance.

Why the burst of activity? According to Randall J. Finden, assistant deputy auditor for the state of Washington, while GASB continues work on its comprehensive, longterm financial reporting model project, it has taken the opportunity to resolve a number of narrower practice issues--projects that could be completed in a limited amount of time. "It's good guidance and very helpful to practitioners for problems we've wrestled with for years," said Finden, who has served on a number of GASB task forces.

Caring for landfills. Statement no. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, is based on a 1991 U.S. Environmental Protection Agency rule maintenance requirements for landfills that accept solid waste after October 9, 1993.

Under Statement no. 18, some of these costs should be included in the estimated total current cost of closure and postclosure care, regardless of their capital or operating nature. The statement is effective for financial statement periods beginning after June 15, 1993.

Conflict over Pell grants. Statement no. 19, Governmental College and University Omnibus Statement, requires colleges and universities that follow the accounting model established by the American Institute of CPAs in Audits of Colleges and Universities to report Pell grants in a restricted current fund. Pell grants are federal monies provided to colleges and universities for distribution to students based on need. The statement is effective for financial statement periods beginning after June 15, 1993.

The statement was needed because of an unresolved conflict between the AICPa model and the prevailing practice described in the National Association of College and University Business Officers Procedures Manual regarding the classification of Pell grants. Because most public institutions follow prevailing practice, the GASB decided they should not be required to change classifications until it conducts additional research as part of its college and university accounting and financial reporting model project.

Proprietary funds: FASB-GASB conflict resolved. Statement no. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, provides interim guidance on business-type accounting and financial reporting for proprietary funds and governmental entities that use proprietary fund accounting. It is effective for financial statement periods beginning after December 15, 1993.

The statement is a response to changes made in 1992 to the hierarchy of generally accepted accounting principles to reflect the jurisdiction agreement between the Financial Accounting Standards Board and GASB. Many GASB constituents were unsure whether the hierarchy change also applied to proprietary fund accounting to apply all applicable GASB standards as well as standards of the FASB and its predecessors issued before November 30, 1989, unless the latter conflict with a GASB standard. Entities also may apply all FASB standards issued after November 1989 except those that conflict with GASB standards.

Fighting waste by measuring service efforts and accomplishments (SEA). In addition to the three new statements, the GASB, with an eye on the future, issued an exposure draft titled Service Efforts and Accomplishments Reporting. Comments on the proposal are due by December 15.

The proposal is the second in series of concepts statements, which ae used by GASB in developing government accounting and financial reporting standards. It seeks to ensure that more complete information about a government entity's performance is made available to citizens, elected officials and others.

SEA is still controversial, said Finden, who noted GASB's efforts in this area have not been fully endorsed by the Government Finance Officers Association. Still, Finden maintained SEA is in tune with the times, fitting in with the federal initiative to "reinvent government" and efforts to bring total quality management to the public sector.

SEA will allow government entities "to explain to the public what they're doing and whether it's being done efficiently and economically," Finden said. "The public's perception is that government is wasteful and out of control. SEA will be a great help in answering these concerns and demonstrating accountability for the public's resources."

After the proposal is finalized, GASB plans to run trial experiments with SEA reporting, measurement and use. If the results are positive, and the board will begin developing SEA reporting standards around the year 2000.

Copies of each of the new statements are available from the GASB order department. For prices and additional information, call [phone], ext. 555. The SEA proposal is available gratis by calling the same number.