Commissioners Court Meeting

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Meeting Date:	08/09/2021
Submitted for:	Carlos Guerra	Prepared by:	Carlos Guerra
Department:	Auditor

Subject:

Discussion and possible action to approve, by Order, the following budget amendment (line item transfer) for an accounting and reporting software service agreement for implementation of GASB 87 Leases:

	Acct. Number	Acct. Name	Adopted	Request	Current	End Bal.
From:	1001-1310-001-431007-010	Operational Reserve		$25,000
To:	1001-1260-001-443000-035	Repairs & Maint. Equip.	$12,500	$25,000	$8,355	$33,355

Issue: GASB issued statement No. 87, Leases. Effective 10/01/2021 Webb County must comply with financial reporting of operating leases to include in lease assets and lease debt. Asking Purchasing department to get a five-year agreement, contingent upon budget. Pricing annual subscriptions are dependent upon number of lease obligations. Currently, Webb County has about 422 leases (vehicles, copiers, buildings, and heavy machinery) and it would cost around $25,000 per year.

Solution: Approve additional funding for current and following years in order to comply with GASB 87 leases.

Result: Software will provide lease information to meet accounting standards of GASB 87. Review and update all lease inputs within the application. View the lease liability balance, lease payments, interest expense, lease asset balance and amortization expense in an exportable table format. Export journal entries into Excel to record retrospective restatement, beginning lease balances and ongoing lease activity.

Fiscal Impact

Budget Account Number:	1001-1260-001-443000
Funding Source:	Operational Reserve
Balance:	n/a
Financial Impact:
n/a budgeted line item transfer