TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Board Policy 340 - Accounting Policy
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider approving minor edits to Board Policy 340 - Accounting Policy.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The accounting policy drives how the District recognizes revenue and expenses and manages all aspects of its finance.
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact related to the minor change in the policy.
BACKGROUND/RATIONALE:
AC Transit reviews Board Policy 340 - Accounting Policy every two years. The intent is to update the policy to keep AC Transit in compliance with Government Accounting Standards Board (GASB) accounting policy, National Transit Database (NTD) reporting requirements, and Government Finance Officers Association (GFOA) recommendations regarding annual reporting, and all other audit and accounting requirements.
The old acronym (CAFR) for the newly titled Annual Comprehensive Financial Report (ACFR) sounds the same as a derogatory term historically used in other parts of the world. Most concerningly, South Africa where this term has ties to Apartheid and is used as a racial slur towards Black South Africans. To avoid this association the GFOA is recommending agencies use ACFR. There are no other changes in the policy.
There are a few other minor grammatical edits that do not change meaning or intent.
ADVANTAGES/DISADVANTAGES:
There are no disadvantages to the recommend policy change that staff can identify.
ALTERNATIVES ANALYSIS:
There is no alternative analysis.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 21-015 - Consolidation of Board Policy 358 - Write-Off Policy with Board Policy 340 - Accounting Policy, thereby repealing Board Policy 358 in its entirety, as well as additional minor amendments to Board Policy 340.
ATTACHMENTS:
1. Board Policy 340 Accounting Policy (Redline)
Prepared by:
Kenneth Myers, Controller
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer
Jill A. Sprague, General Counsel/Chief Legal Officer