from the Government NOW e-Newsletter

Governmental entities have received a reprieve from implementing proposed IRS regulations. On December 5, 2008, the IRS proposed IRC subsection 3402(t). Under this regulation, payments exceeding $10,000 made by a government entity for goods and services, to contractors, would be subject to a 3% withholding. The Recovery Act extended the effective date to December 31, 2011. All federal, state, and political subdivisions of state governments are subject to this regulation. If the government entity fails to withhold the tax required, it becomes liable for the payment of tax. However, there are various exceptions. ASBS No. 54 changes the reporting requirements and fund balance definitions that we are used to seeing in governmental funds.  Non-spendable fund balances will be specifically identified and all other amounts will be classified according to the new restriction hierarchy shown below. To find out more, please click here.

from the Government NOW e-Newsletter

GASBS No. 54 changes the reporting requirements and fund balance definitions that we are used to seeing in governmental funds.  Non-spendable fund balances will be specifically identified and all other amounts will be classified according to the new restriction hierarchy shown below.

Nonspendable Fund Balance.  These are amounts that cannot be spent and are, therefore not included in the current year appropriation. There are two components to this fund balance category: 1) not in spendable form and 2) legally or contractually required to be maintained intact. The “not in spendable form’ component refers to previously recorded disbursements and includes items that are not expected to be converted into cash, such as inventories on hand and prepaid expenditures. Also included would be the long-term amount of loans and notes receivable and property acquired for resale.

from the Goverment NOW e-Newsletter

Albuquerque-based Mountain States Constructors Inc. has broken ground on a major highway and interchange reconstruction project on Interstate 40. The project will reconstruct Paseo del Volcan and Central Avenue (west of Albuquerque) and provide an overpass and four ramps. The project is slated to be completed in May 2010. Of the $24 million cost, $14.8 million comes from Recovery funds, and has created 78 new jobs so far.