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Commissioner Hovis - Finance - To Appropriate $1,753,221, in FY2023, for the Implementation of GASB 96 Subscription Agreements
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STAFF CONTACT
Tiffany Murray - Finance - 704-866-3032
BUDGET IMPACT
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General Fund: Increase capital outlay expense and financing proceeds by $1,753,221.
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BUDGET ORDINANCE IMPACT
Minimal impact to the ordinance.
BACKGROUND
The Governmental Accounting Standards Board (GASB) has implemented a new standard to account for Subscription Agreements (GASB 96). In FY2023, the County is responsible for implementing this GASB Standard. This Board Action and Budget Change Request appropriate the capital outlay and lease proceeds associated with the Subscription Agreements that are GASB 96 compliant as of 6/30/2023. This Board Action and Budget Change Request also offset the original operating expenses and recognizes those expenses as debt expenses.
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)