The current economic crisis has presented new and pressing challenges to local governments. Join Cherry, Bekaert & Holland and the Northern Virginia Group of the VGFOA for an all-day seminar on timely topics that include stimulus funding and accountability, the single audit for FY10, the results of a recent survey on facilities management, and other topics of significance to help you and your government deal with these challenging times. You will hear from a variety of experts on the most relevant financial and operational issues facing governments today.

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The American Banker’s Association (ABA) and the FBI recently issued a warning to local government organizations, small businesses, and nonprofits conducting their affairs online to be careful of targeted internet attacks. USA Today reports on why exactly the safest solution may be a dedicated PC used only for banking.

Cybergangs have inundated the Internet with “banking Trojans” — malicious programs that enable them to surreptitiously access and manipulate online accounts. A dedicated PC that’s never used for e-mail or Web browsing is much less likely to encounter a banking Trojan.

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As reported in The New York Times, the new year finds many states facing a bleak financial outlook.

On Wednesday, governors in California, Kentucky and New York kick off the season of addresses to state lawmakers as at least 36 states struggle to close budget shortfalls and also begin confronting the next fiscal year’s woes.

For many of the states, the new year spells the end to accounting maneuvers, one-off solutions, tax increases and service cuts that were as deep as lawmakers thought they could bear. And governors confront this situation in an election year in which dozens of their jobs are in play, and as many state legislators face their own election challenges.

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Here are the Top 10 most visited posts of 2009.

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1. OMB A-133 Compliance Supplement for 2009 Provides Additional ARRA Guidance
2. New Report Announces Methods for Measuring ARRA Job Creation Progress
3. OMB Releases New Reporting Guidance for ARRA Funding Recipients
4. NASC Conference Presentations Highlight Accountability and Transparency Best Practices
5. OMB Issues Guidelines to States Regarding Reimbursement of ARRA Administrative Costs
6. CB&H Publishes Report on Intergovernmental Financial Dependency and Related Risks
7. CB&H’s Ed Mazur to Speak at Association of Government Accountants Luncheon
8. GAO Stresses Accountability Issues in First Required Bimonthly Review of ARRA Funds

The Government Accountability Office (GAO) has released its November report on State and Locality usage of funding provided by the American Recovery and Reinvestment Act of 2009 (ARRA). As of November 27, 2009, one quarter of the approximately $280 billion allocated to state and local government had been paid out. Most states report using the funds to cover budget gaps and retain jobs.

The majority of this funding has been drawn down through Medicaid Federal Medical Assistance Percentage (FMAP) and the Department of Education’s State Fiscal Stabilization Fund (SFSF). States have used 97 percent ($27.3 billion), of the allocated 2009 FMAP Grants. Medicaid spending has been used primarily to maintain coverage levels and cover an increase in subscribers.

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Effective January 1, 2010, any payer that pays an Individual Taxpayer Identification Number (ITIN) holder more than $1,500 a year must withhold 4% of that pay, to be remitted to the NC Department of Revenue. The Internal Revenue Service issues ITINs to individuals who are not eligible to receive a Social Security number. An ITIN is present when the first digit is a “9” and the fourth digit is a “7” or an “8”. Payers can include businesses, organizations, governmental entities, or individuals.

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President Obama announced yesterday that he is currently working with Congressional leaders on a new economic stimulus package that will include tax cuts and new spending. Many of the initiatives outlined include incentives for businesses to create jobs, construction spending for roads and other infrastructure projects, and weatherizing rebates for homeowners. Consideration of the proposed legislation will not occur until early next year. As reported today in The New York Times:

The president’s new proposals include eliminating capital gains taxes on small business investment and creating “cash for caulkers” rebates for consumers who invest in home-weatherization projects — an idea modeled on the popular “cash for clunkers” program that increased auto sales over the summer.

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The Government Accountability Office (GAO) recently released its regular performance audit for state and local administration of the American Recovery and Reinvestment Act (ARRA) funds. The report is a combination of new information gathered on the Recovery Accountability and Transparency Board (the Board), and existing information gathered through bimonthly audits of state administration. Findings covered the extent to which the Board is monitoring Recovery Act-related federal contract spending and the success of states to maintain competitive procedures when awarding Recovery Act contracts. Approximately 35 percent of proposed stimulus funding has been administered to date.

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Cherry, Bekaert & Holland, L.L.P. (CB&H), one of the largest regional public accounting and consulting firms headquartered in the Southeast, is pleased to announce the promotion of Patricia L. Pryor to the position of Audit Partner with the Firm.

Pryor is a Certified Public Accountant with over 17 years of experience. Based in CB&H’s Metro Atlanta practice, she will lead specialized audit services locally to the Firm’s not-for-profit, higher education and government clients.

“Patricia has provided invaluable audit and accounting solutions to our not-for-profit, higher education and government clients in the Atlanta area over the last few years,” said Kip Plowman, Partner-in-Charge of CB&H’s Metro Atlanta practice. “I am proud to welcome her to the Firm’s leadership.”

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Last week, The US Government Accountability Office (GAO) released the results of its first quarterly survey of job creation and retention as a result of Federal stimulus funding. So far, the government has paid out a total of $173 billion of American Recovery and Reinvestment Act (ARRA) funding. The report covered jobs created as a direct result of government contracts, grants and loans. This spending represents $47 billion, or about 25 percent of funds paid so far.

The congressional watchdog agency found that, while 100,000 recipients accurately reported several hundred thousand jobs saved or created, many recipients were unable to accurately fulfill their data reporting requirements.

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