Title
Auditor-Controller recommending the Board approve the attached budget transfer that recognizes long-term debt proceeds along with an equal increase in capital expenditure appropriations to comply with the requirements of Governmental Accounting Standards Board Statements 87 and 96. (4/5 vote required).
FUNDING: The budget transfer affects several funds and departments, but does not increase costs.
Body
DISCUSSION / BACKGROUND
With the implementation of GASB 87 and GASB 96, qualifying leases and software subscriptions must be recorded as capital expenditures. This requires recognition of revenues as if the County had entered into a loan agreement to finance these acquisitions as well as the recognition of a capital expenditure per Generally Accepted Accounting Principles (GAAP). This is an accounting process that has no effect on the County's actual costs.
ALTERNATIVES
N/A
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no impact to the Net County Cost.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Please obtain BOS signature on the attached budget transfer.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Joe Harn