[Mail_treas] Cash Basis Financials

[Hange, Connie]

I had several requests to share the information I received regarding my
question about changing from GAAP to Cash (OCBOA) reporting.

I received forty-some responses.  Of those, one sent this message:
"The Ohio Society of CPA’s shuns you!"

One share that he has prepared statements both ways and, while the Cash
basis is much easier, cheaper and less time-consuming, he would not make a
switch based on the answers to questions J and K on page 6 of the
attachment.

The rest of the responses were in favor of making the switch; stating the
pros of less cost, less time and financial statements that are better
understood by the majority of their users.  The cons of always having a
compliance citation on the audit and never receiving a State Auditor Award
for clean reporting were not impactful enough for any of them to regret
making the change.  Also, while there is a $750 penalty attached to the
citation, only one of them had ever actually been billed for that penalty,
and has not been billed in the past several years.

So, I will share this information with my Board and let them decide!

Have a great weekend and thanks everyone for your input!

Connie


Connie I. Hange, CPA
Treasurer/CFO
Black River Local School District
419-736-3300
change at blrv.org
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