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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Hello ACFR Contacts,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">During our recent training on GASB Statement No. 96
<i>Subscription Based Information Technology Arrangements</i>, we had several exercises to hopefully help in the understanding of the standard, one of which covered the treatment of payments made in advance of the SBITA being placed in service. The exercise
was built off of paragraph 26 of the standard, which states the following: “</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Payments before the commencement of the subscription term associated with the SBITA contract made to the SBITA
vendor, as well as payments made for the capitalizable initial implementation costs before the commencement of the subscription term, should be reported as a prepayment (an asset)….” After the training, I submitted a technical inquiry and the GASB staff indicated
that a “prepayment” in this context is not a prepaid expense, but rather it is construction in progress (CIP). As a result, we’ve updated Exercise #2 with revised T-code guidance, and that guidance is consistent with other CIP transactions. In addition to
the exercise, the slide 22 of training slides has also been updated. Here’s a link to our Training and Resources Page, Accounting and reporting training, that includes the updated slides and exercise:
<a href="https://www.oregon.gov/das/Financial/Acctng/Pages/Training.aspx">https://www.oregon.gov/das/Financial/Acctng/Pages/Training.aspx</a>. We’re finishing our quality control of the draft OAM, which will incorporate this treatment, and will be placed out
for comment soon.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Hopefully by sending this out before June 30, it doesn’t result in any revisions of entries agencies have made, and I’m sorry if this causes any problems.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">My sincere thanks to Sangit Shrestha of Department of State Lands for bringing this to my attention initially.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">If you have any questions, please contact your SARS analyst.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Rob</span><span style="font-size:9.0pt;font-family:"Arial",sans-serif"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;color:#353535;mso-ligatures:none">Robert W. Hamilton, CPA</span></b><b><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;color:#353535;mso-ligatures:none"><o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;color:#353535;mso-ligatures:none">Statewide Accounting and Reporting Services Manager</span></b><b><span style="font-family:"Verdana",sans-serif;color:#353535;mso-ligatures:none"><o:p></o:p></span></b></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;mso-ligatures:none">Chief Financial Office</span><span style="mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;mso-ligatures:none">Department of Administrative Services</span><span style="font-size:8.0pt;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;mso-ligatures:none">Cell: (971) 719-3031<o:p></o:p></span></p>
<p class="MsoNormal"><a href="http://www.oregon.gov/DAS/financial/acctng"><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;color:blue;mso-ligatures:none">http://www.oregon.gov/DAS/financial/acctng</span></a><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;mso-ligatures:none"> </span><span style="font-size:8.0pt;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Verdana",sans-serif;color:#353535;mso-ligatures:none">Data Classification: Level 1 - Published</span><span style="mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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