DATE: October 5, 2017
TO: Budget and Finance Committee
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator/CFO
Mike Lowe, Comptroller
SUBJECT:
title
Report on new accounting standards
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the impact of the new standards on the City’s financial reporting.
Background
The Governmental Accounting Standards Board (GASB) has issued standards on:
1. reporting of benefits offered to retirees (commonly called OPEB, or other post-employment benefits),
2. disclosures of tax abatements,
3. a revisit of pension reporting, and
4. reporting on leases.
Financial Impact
The new standards do not require governments to undertake any specific actions. The first standard will include calculation of the retiree health insurance benefit compared to assets set aside, the second standard will include information about lieu of tax agreements that reduce property tax revenue, and the third and fourth standards will ensure consistent reporting for pensions and leases.
Recommendation
rec
Report only