2.4.401 ACCOUNTING AND FINANCIAL REPORTING STANDARDS
(1) Except as provided in (2), all local government entities, as defined by 2-7-501(7), MCA, shall adhere to the accounting and financial reporting standards applicable to the reporting period adopted by the Governmental Accounting Standards Board (see ARM 2.4.411).
(2) If approved by the department, a local government entity shall adhere to the provisions described in the Small Government Financial Reporting Framework instead of the provisions provided in (1). The department shall not approve an application to report in accordance with the Small Government Financial Reporting Framework if the following circumstances are known to the department:
(a) the local government entity is subject to a compliance requirement prescribing the use of the provisions of (1); or
(b) the local government entity has a population of 5,000 or more as reported in the most recent decennial survey issued by the United States Census Bureau.
(3) The reporting provisions of the Small Government Financial Reporting Framework include:
(a) all aspects of accounting and reporting in accordance with generally accepted accounting principles, updated through June 30, 2019, as defined by the Governmental Accounting Standards Board, or its successor, excluding the following:
(i) the government-wide statement of net position and the government-wide statement of activities, which also excludes:
(A) reporting of discretely presented component units;
(B) reconciliations related to the government-wide statements; and
(C) notes related to the government-wide financial statements;
(ii) actuarially determined post-employment benefit information, which also excludes:
(A) recognition of non-employer contributions;
(B) related notes to the financial statements; and
(C) related required supplementary information;
(iii) the following supplementary information required by the Governmental Accounting Standards Board:
(A) the management's discussion and analysis;
(B) certain revenue and claims development information of public entity risk pools; and
(C) the schedules of assessed condition and estimated and actual maintenance and preservation costs for the modified approach for infrastructure assets;
(b) financial statements must include as basic financial statements:
(i) a statement of changes in governmental capital assets; and
(ii) a statement of changes in governmental long-term debt;
(c) financial statements must include major fund budgetary comparison information, including related required notes, as supplementary information, as defined by the Governmental Accounting Standards Board, when applicable; and
(d) financial statements must include the schedules of proportionate shares and required contributions, excluding related notes, prepared for the local government entity by the Montana Public Employee Retirement Administration and the Montana Teachers' Retirement System as other information, when applicable.
History: 2-7-504, 2-7-513, MCA; IMP, 2-7-504, 2-7-513, MCA; NEW, 1992 MAR p. 1354, Eff. 6/26/92; AMD, 1997 MAR p. 1027, Eff. 6/24/97; TRANS, from Commerce, 2002 MAR p. 2649; AMD, 2007 MAR p. 964, Eff. 7/6/07; AMD, 2019 MAR p. 2217, Eff. 12/7/19.