For this assignment, create a memorandum to the supervisors. You are a finance officer of a county government whose board of supervisors has been expressing its confusion about deferrals. They dont understand what deferrals are, where they came from, and what their impact will be on the countys financial health as reported in its CAFR. Some of the supervisors, in their confusion, want to know why the county should have to follow these standards and are threatening to pass an ordinance prohibiting the county from reporting deferrals.

a) This will begin with a background section. Explain that you have been asked by the board of supervisors to have a memorandum and why. Briefly preview what the memo will cover and why it is important to the supervisors.

b) Explain what deferred outflows of resources and deferred inflows of resources are. Your ability to clearly define deferrals in a manner that the non-accountants on the board of supervisors will understand is key in this section.

c) The third section will explain why the county has begun to report deferrals. The requirement to follow GASB standards is a pragmatic matter and should be addressed, but the more important aspect of the section should be to explain why it is important to report deferrals separately from assets and liabilities.

d) The fourth section will describe what is required by Statements 63 and 65 and how it differs from what the county currently is doing.

e) The last section will be a conclusion. This section will present the opinion of the requirements of GASB Statements 63 and 65.