To: MAYOR AND CITY COUNCIL
From: JENNIFER PAUL, FINANCE DIRECTOR
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APPROVE AN AGREEMENT WITH LANCE, SOLL AND LUNGHARD, LLP FOR ACCOUNTING SERVICES RELATED TO COMPLIANCE WITH GASB STATEMENTS 87, 89, 91, 94, 96 AND 97, GASB 87 LEASE SOFTWARE IMPLEMENTATION, AND COMPLIANCE WITH ALL CURRENT AND EFFECTIVE GASB PRONOUNCEMENTS IN AN AMOUNT NOT TO EXCEED $100,000 FOR THE TERM JUNE 21, 2022 TO DECEMBER 31, 2023.
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EXECUTIVE SUMMARY
The Governmental Accounting Standards Board (GASB) is an organization that establishes Generally Accepted Accounting Principles (GAAP) and financial reporting standards for local governments by periodically issuing GASB Statements. Local governments are required to comply with all Statements issued by GASB. Numerous Statements have been issued recently by GASB that require implementation and compliance by the City.
GASB Statements 87, 89 and 97 are applicable for FY 2021-22 and GASB Statements 91, 94 and 96 are applicable for FY 2022-23.
In particular, GASB Statements 87 and 97 establish new standards of accounting and financial reporting for leases (lessor and/or lessee arrangements) and for Internal Revenue Code Section 457 Deferred Compensation Plans, respectively. The City is required to implement these Statements by the June 30, 2022 year-end period.
Compliance and implementation of the new GASB regulations will require a significant amount of staff time and specialized technical advisory related to these complex transactions. Financial Services does not currently have the staff resources or capacity to effectively implement and comply with the required GASB regulations without the assistance of a third-party consultant, Lance, Soll and Lunghard, LLP (LSL). These services would be outside the scope of services for the City's annual financial audit, which is currently being performed by a different branch of LSL so that there will be no conflict of interest.
Staff is recommending the approval of an agre...
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