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Commissioner Worley - Finance - To Appropriate $6,599,570.91 for the Year-End Entries Associated with GASB 87 Lease Agreements and GASB 96 Subscription Agreements (General Fund $6,063,073.84; Tourism Fund $8,489.76; Property Revaluation Fund $233,406.05; Emergency Telephone Fund $88,430.00; Drug Forfeiture Fund $92,426.26; Debt Service Fund $113,745.00)
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STAFF CONTACT
Kyle Sutherland - Finance - 704-866-3032
BUDGET IMPACT
budget
General Fund: Increase expense and revenue by $6,063,073.84
Tourism Fund: Increase expense and revenue by $8,489.76
Property Revaluation Fund: Increase expense and revenue by $233,406.05
Emergency Telephone Fund: Increase expense and revenue by $88,430.00
Drug Forfeiture Fund: Increase expense and revenue by $92,426.26
Debt Service Fund: Increase expense and revenue by $113,745.00
No County Funds
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BUDGET ORDINANCE IMPACT
Minimal impact to the ordinance.
BACKGROUND
The Governmental Accounting Standards Board (GASB) implemented a new standard to account for Lease Agreements (GASB 87) and Subscription Agreements (GASB 96). In FY22, the County implemented GASB 87 and in FY23, the County implemented GASB 96. This Board Action appropriates the necessary year-end adjusting entries associated with both GASB Standards.
GASB 87 information: It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.
GASB 96 information: “It has become common for governments to enter into subscription-based contracts to use vendor-provided information technology (IT). Subscription based information technology arrangements (SBITAs) provide governments with access to vendors’ IT software and associated tangible capital assets for subscription payments without granting governments perpetual license or title to the IT software and associated tangible capital assets. Prior to the issuance of this Statement, there was no accounting or financial reporting guidance specifically for SBITAs.”
POLICY IMPACT
N/A
ATTACHMENTS
Budget Change Request (BCR)