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<p class="MsoNormal">Good afternoon ACFR contacts!<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I’m pleased to announce that the <u>new</u> accounting profiles associated with GASB 87 are now available in R*STARS for use beginning July 1, 2021 (FY 2022). Special thanks to SFMS for all of their efforts to implement the R*STARS profile
changes!<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>Please note</b>: existing profiles that need to be <u>modified</u> (e.g. D10 Cobj 4800) to align with the new lease reporting standards will be made
<u>after Month 13 closes</u> so as not to inadvertently impact FY 2021 financial reporting.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">For a comprehensive list of the profile changes, please refer to the
<i>Accounting profiles-proposed</i> file located at: <span style="color:#1F497D">
<a href="https://www.oregon.gov/das/Financial/Acctng/Documents/GASB%2087%20Chart%20of%20Account%20Changes.03-12-2021.pdf">https://www.oregon.gov/das/Financial/Acctng/Documents/GASB%2087%20Chart%20of%20Account%20Changes.03-12-2021.pdf</a>.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal">Let the agency object code creation begin! Have fun!<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">In other news, below are a few housekeeping items related to GASB 87 implementation I wanted to highlight:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo1"><![if !supportLists]><span style="mso-list:Ignore">1.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>During the year of GASB 87 implementation (FY 2022), agencies should consider the commencement date of each lease as
<u>July 1, 2021</u>. For example, if the agency entered into a lease in 2005 and the lease expires May 31, 2022 (assuming there are no options to extend), the maximum lease term would be 11 months and thus the lease would qualify as a short-term lease during
the year of implementation. [Refer to GASB 87 paragraphs 94, B124.]<o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="mso-list:Ignore">a.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>For those leases that expire <u>after</u> June 30, 2022, recognize and measure the leases using the facts and circumstances that exist as of
<u>July 1, 2021</u>.<o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.0in"><o:p> </o:p></p>
<p class="MsoListParagraph" style="text-indent:-.25in;mso-list:l0 level1 lfo1"><![if !supportLists]><span style="mso-list:Ignore">2.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>If an agency concludes that the interest rate, or interest rate implicit in the lease, cannot be “readily determined” then the Statement allows the incremental borrowing rate to be used. [Refer to GASB 87 paragraphs 23, B40.]
<u>Agencies are responsible for documenting their conclusions for audit purposes</u>.<o:p></o:p></p>
<p class="MsoListParagraph" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1">
<![if !supportLists]><span style="mso-list:Ignore">a.<span style="font:7.0pt "Times New Roman"">
</span></span><![endif]>Understanding that the Statement goes into effect July 1, 2021, a statewide incremental borrowing rate is not yet available for use in measuring leases. SARS has been coordinating with Treasury to identify a mechanism for making that
information available to agencies. An announcement will be made via the ACFR contacts news list once a process has been established.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Please let me know if you have any questions. Thank you!<o:p></o:p></p>
<p class="MsoNormal">s<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>Stacey A. Chase<o:p></o:p></b></p>
<p class="MsoNormal">Senior Financial Reporting & Policy Analyst<o:p></o:p></p>
<p class="MsoNormal">Chief Financial Office<o:p></o:p></p>
<p class="MsoNormal">Department of Administrative Services<o:p></o:p></p>
<p class="MsoNormal">Phone: (971) 900-9993<o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><a href="https://www.oregon.gov/das/financial/acctng/pages/index.aspx"><span style="color:blue">https://www.oregon.gov/das/financial/acctng/pages/index.aspx</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Data Classification: Level 1 - Published</span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<div>
<div style="border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in">
<p class="MsoNormal"><b>From:</b> Acfr-contacts-news <acfr-contacts-news-bounces@omls.oregon.gov>
<b>On Behalf Of </b>CHASE Stacey A * DAS via Acfr-contacts-news<br>
<b>Sent:</b> Thursday, May 13, 2021 11:40 AM<br>
<b>To:</b> acfr-contacts-news@omls.oregon.gov<br>
<b>Subject:</b> [ACFR-contacts-news] GASB 87, Leases, Implementation Updates<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Hello ACFR contacts!<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">How is GASB 87 implementation going? Great, right?! Below are a few implementation updates.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><u>Secretary of State (SOS) Audits Division<o:p></o:p></u></p>
<p class="MsoNormal">SOS auditors started contacting agencies to discuss GASB 87 implementation efforts. Remember,
<b>documentation is essential</b>. Whether a contract and/or agreement was determined by the agency to be subject to GASB 87 or excluded from GASB 87, be sure to document how the determination was made and retain the documentation for audit purposes. The auditors
may ask to review this documentation.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><u>Leases negotiated by DAS Real Estate Services (DAS-RES)<o:p></o:p></u></p>
<p class="MsoNormal">DAS-RES will provide a list of existing leases negotiated by DAS-RES on behalf of other state agencies. The list will include a minimum amount of information about each lease; the purpose of which is to alert agencies of current leases
that will need to be evaluated and measured. DAS-RES is in the process of preparing the reports by agency for distribution no later than May 28. The lists will be distributed to the agency contact on file at DAS-RES. Please coordinate with your internal procurement
or facilities office to obtain a copy of the list, as needed.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><u>GASB 87 Resources<o:p></o:p></u></p>
<p class="MsoNormal">Be sure to visit the SARS training and resources webpage for information to assist with agency implementation efforts. Direct access to the webpage is available via the following link:
<a href="https://www.oregon.gov/das/Financial/Acctng/Pages/Training.aspx">https://www.oregon.gov/das/Financial/Acctng/Pages/Training.aspx</a>.<span style="color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Please let me know if you have any questions. Have a great day everyone!<o:p></o:p></p>
<p class="MsoNormal">S <span style="font-family:Wingdings">J</span><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><b>Stacey A. Chase<o:p></o:p></b></p>
<p class="MsoNormal">Senior Financial Reporting & Policy Analyst<o:p></o:p></p>
<p class="MsoNormal">Chief Financial Office<o:p></o:p></p>
<p class="MsoNormal">Department of Administrative Services<o:p></o:p></p>
<p class="MsoNormal">Phone: (971) 900-9993<o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><a href="https://www.oregon.gov/das/financial/acctng/pages/index.aspx"><span style="color:blue">https://www.oregon.gov/das/financial/acctng/pages/index.aspx</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
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