Lease accounting changes are coming soon

Close-up of a hand filling out lease agreement formIn June 2017, the Governmental Accounting Standards Board (GASB) issued Statement No. 87, a new accounting and reporting standard regarding leases. Under the prior approach, governments applied a somewhat subjective test to determine if a lease should be classified as “operating” or “capital.” Under the new approach, GASB assumes all leases (with a few stated exceptions) are just leases, eliminating “operating” leases. The primary goal of the new standard is to increase comparability across governments and provide financial statement users with better, more complete information by establishing a single model for lease accounting. The new standard will take effect for reporting periods beginning after December 15, 2019, and apply retroactively as if the standard was in place at the beginning of the implementation period. Early implementation is encouraged. To review the standard, see GASB Statement No. 87. Continue reading

Employer reporting requirements for other post-employment benefits (OPEB) have taken effect

Social Man Drawing Social Security BenefitsGovernmental Accounting Standards Board (GASB) Statement 75, Accounting and Reporting for OPEB is effective for the Reporting Year 2018 (this year!). OPEB, or post-employment benefits other than pension, includes benefits such as healthcare provided through a pension plan or separately (medical, dental, vision, hearing, etc.) and other benefits when provided separately from a pension plan, such as: life insurance, long-term care, disability, and more. Continue reading

Keep an eye out for workshops to help meet annual report filing deadline

Man and woman working together at a computer.Spring will be here before you know it, and so will the annual report deadline for local governments whose fiscal year ends December 31, 2018. For those governments, annual reports are due May 30, 2019. State law does not provide for any exceptions, so we recommend starting the filing process early, and we are available to help.

Once again our Office will be conducting free filing workshops to help with the reporting process. Participants will be able to register for a one-hour time slot for individualized assistance. We will provide one-on-one assistance in person at several locations around the state or remotely through video call (Skype). We will provide computers for the in-person workshops, so if you bring the materials needed to file your report, you might be able to complete and file your report during the one-hour appointment.

Stay tuned for more details and registration!

Changes to fiduciary reporting take effect soon

Last fall, we posted an article strongly encouraging governments to start evaluating activities that might be classified as fiduciary activities under the Governmental Accounting Standards Board’s (GASB) recently issued Statement No. 84. The changes to fiduciary activity reporting are right around the corner – effective for reporting periods beginning after December 15, 2018 – and affect not only governments that report under generally accepted accounting principles, but those that report using the cash-basis accounting model as well.

It might be tempting to put off consideration of this new standard until all the guidance and examples are issued, especially for cash-basis governments that follow the Budgeting, Accounting and Reporting System (BARS) Manual. However, dedicating the time now to understand where fiduciary activities exist within your organization will put you in the best position to effectively implement these changes.

To help in your evaluation, we recommend using our Best Practices for Implementing New GASB Standards along with the specific suggestions below for getting started. Continue reading