Title
A Resolution Approving a New Lease and Subscription Policy and Rescinding Resolution 22-1135.
Summary
The Governmental Accounting Standards Board issued a new standard (#96) that provides guidance on the accounting and financial reporting for subscription-based IT arrangements (SBITA's). The finance department is requesting to rescind resolution 22-1135 and lease policy it approved, so the newly developed policy can be adopted. Additionally, our auditors recommended an increase to our threshold from $15,000 to $100,000 based on entities our same size. This threshold is defined as total agreement payments over the life of the agreement and the increase is included in this new policy.
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.**Request to Transfer Departmental Budget Dollars form must be attached**
____ Not budgeted requiring increase to account #___________ in the amount of $____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital - Departmental **Capital Purchase Worksheet form must be attached**
____ Budgeted under account #______________ for $_________ and described in budget as ________________________. Additional amount needed, if any: Increase in budget of $_________ OR, transfer of $________ from Account #____________ to Account #_____________**Request to Increase OR Request toTransfer Departmental Budget Dollars form must be attached**
____ Not Budgeted - account #____________ requires budget increase of $_____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital Project - **If requesting to start a project, a Capital Project Worksheet form must be attached**
In current year Capital Projects Plan:
_____ Yes, described as __________________________, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________.
_____ No, requesting an increase of $___________ to an already approved project titled ________________________ that is being tracked under Account No. ___________________.
Body
WHEREAS, on April 18, 2016, the City Council passed Resolution 16-1097 adopting a Policy for Capital and Operating Equipment Leases, and
WHEREAS, on May 2, 2022 the City Council passed Resolution 22-1135 rescinds Resolution 16-1097 and adopting a Policy for Leases - GASB 87, and
WHEREAS, the Governmental Accounting Standards Board has issued a new standard causing that policy to no longer be applicable, and
WHEREAS, Finance has drafted a new lease policy in accordance with the new guidance and increased the threshold in accordance with auditor recommendations.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Rescinds Resolution 22-1135 and the Policy for Leases - GASB 87.
SECTION 2: A Policy for Leases and Subscriptions is hearby adopted and a copy is attached and made a part of this resolution.
SECTION 3: This Resolution shall become effective immediately upon its adoption as required by law.