TITLE
Title
BUDGET AMENDMENT: GASB 96 YEAR END ADJUSTMENTS
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SPONSOR
Sponsor
Don Warn
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BACKGROUND
Background
Over the past few years, the Governmental Accounting Standards Board (GASB) created new standards for how governments account for subscription-based information technology arrangements (GASB 96).
The Governmental Accounting Standards Board (GASB) issued Statement No. 96, Subscription Based Information Technology Agreements (SBITA), in May 2020 and for most NC local governments and public authorities in North Carolina, this statement became effective for the fiscal year beginning July 1, 2022. Before GASB 96, SBITAs were budgeted and expended annually based on the schedule of payments in the agreement. The new standard now requires the County to report an expenditure and an offsetting revenue (other financing source) in the period the agreement is initiated for the total amount of all future payments. Future payments are then budgeted and accounted for as debt service principal and interest expenditures like long-term debt rather than as an annual operating expenditure.
To account for these items, a debit and credit are posted in our accounting systems as a reporting item. These are non-cash entries and do not impact the County's overall financial position.
This entry is specific to The Microsoft Enterprise Agreement approved by the Board on September 5, 2024 (agenda item #2024-376) which includes the Windows desktop Operating System, Windows Server, Microsoft Office 365, Power BI Pro, Visio Pro and other enterprise server and individual licenses. The Microsoft Enterprise Agreement was approved for three years beginning October 1, 2024 and ending on September 30, 2027. This entry represents the full three year contract impact.
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BUDGET IMPACT
Budget Impact
General Fund
$4,067,550 increase in appropriation to Information Technology
$4,067,550 increase in Other Revenue
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REQUESTED ACTION
Requested Action
Approve a budget amendment increasing the appropriation to Information Technology by $4,067,550 and increase Other Revenue by $4,067,550.
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