2018 Fall issue of Horizons

An example of a transfer of operations is a city government that offers fire services transferring its fire operations to another municipality or fire district (similar to the merger of the Englewood Fire Department into the Denver Fire Department). Subsequent to the transfer, the city government continues to exist and offer other municipal services to its residents; the city has merely divested itself of fire service operations. Many governments that previously maintained their own police departments, fire departments or EMS services have recently discovered that it is more cost effective to dissolve or transfer these departments and contract with a third-party for these services. Under GASB Statement No. 69, transfers of operations are accounted for similar to mergers, with the government receiving the transfer measuring the assets, deferred outflows of resources, liabilities and deferred inflows of resources received at their carrying value.

The government making the transfer removes these items from its financial statements and records the gain or loss on the disposal as a special item. If your government is contemplating a merger, acquisition or transfer of operations, RubinBrown can assist with developing financial models to help you analyze the economic consequences of such a transaction and prepare pro forma financial statements to illustrate the financial reporting implications. Government combinations are significant undertakings, involving many tasks beyond the normal daily operations of the government. Analyzing the financial ramifications of the combination is a particularly urgent task. RubinBrown is happy to answer the call for help, leaving one less fire to put out.

PUBLIC SECTOR SERVICES GROUP

Through our extensive list of clients, including many cities and governmental entities, RubinBrown understand the issues unique to the public sector. For more information, visit www.RubinBrown.com/PublicSector .

Jeff Winter, CPA, CGMA Chair & Partner Public Sector Services Group 314.290.3408 jeff.winter@rubinbrown.com

Chester Moyer, CPA Partner Public Sector Services Group 816.859.7945 chester.moyer@rubinbrown.com

Cheryl Wallace, CPA Partner-In-Charge Public Sector Services Group 303.952.1288 cheryl.wallace@rubinbrown.com

Ted Williamson, CPA Partner Public Sector Services Group 314.678.3534 ted.williamson@rubinbrown.com

Fall 2018

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