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CITY OF SAN LEANDRO <br />MEMORANDUM ON INTERNAL CONTROL <br />JUNE 30, 2012 <br /> <br />SCHEDULE OF OTHER MATTERS <br /> <br />Review Draft 6/18/2013 5:11:57 PM <br /> <br />Management Response: <br />The Engineering and Transportation department is continuing to improve its contract database. <br /> <br />2012-05 Upcoming Governmental Accounting Standards Board Pronouncements <br /> <br />The following pronouncements are effective in fiscal year 2012/13: <br /> <br />GASB 60 - Accounting and Financial Reporting for Service Concession Arrangements <br /> <br />The objective of this proposed Statement is to establish accounting and financial reporting requirements <br />for service concession arrangements (SCAs), which are a type of public-private or public-public <br />partnership arrangement. As used in this proposed Statement, an SCA is an arrangement between a <br />transferor (a government) and an operator (governmental or nongovernmental) in which: <br /> <br />a. The transferor conveys to the operator the right and related obligation to provide public services <br />through the operation of a capital asset (referred to in this standard as “facility”). <br /> <br />b. The operator collects and is compensated with fees from third parties. <br /> <br />c. The transferor is entitled to significant residual interest in the service utility of the facility at the end of <br />the arrangement. <br /> <br />d. The transferor determines or has the ability to modify or approve what services the operator is required <br />to provide, to whom the operator is required to provide the services, and the prices or rates that can be <br />charged for the services. <br /> <br />Service Concession Arrangements include, but are not limited to: <br /> <br />a. Arrangements in which the operator will design and build a facility and will obtain the right to collect <br />fees from third parties (for example, construction of a municipal complex for the right to lease a portion <br />of the facility to third parties) <br /> <br />b. Arrangements in which the operator will provide an up-front payment or a series of payments in <br />exchange for the right to access an existing facility (for example, a parking garage) and collect fees from <br />third parties for its usage <br /> <br />c. Arrangements in which the operator will design and build a facility (for example, a new tollway), <br />finance the construction costs, provide the associated services, collect the associated fees, and convey the <br />facility to the government at the end of the arrangement. <br /> <br />Disclosures Related to Service Concession Arrangements (SCA) <br /> <br />The following information should be disclosed in the notes to financial statements of transferors and <br />governmental operators for SCAs: <br /> <br />a. A general description of the arrangement in effect during the reporting period, including management’s <br />objectives for entering into it and, if applicable, the status of the project during the construction period <br />