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Douglas County commissioners approve GAAP waiver for fiscal 2025, agree to study accrual accounting options
Summary
The Douglas County Commission voted Jan. 22 to adopt a resolution waiving Generally Accepted Accounting Principles (GAAP) reporting for fiscal year 2025 and directed staff to study the costs and timeline of converting county accounting systems to GAAP.
The Douglas County Board of County Commissioners on Jan. 22 approved a resolution waiving the requirement to use generally accepted accounting principles (GAAP) for fiscal year 2025, maintaining the county’s current modified cash basis (KMAG) reporting under Kansas law. Commissioner Reid moved adoption of the resolution; the motion passed by voice vote.
Commissioners and members of the public questioned whether continuing the waiver reduces transparency and may affect future bond ratings. Commissioner Gene Dorsey (speaking earlier in related discussion) noted that without adopting GAAP the county cannot obtain a AAA bond rating and remains at AA+. He recommended that staff study how much time and money would be required to adopt GAAP accounting, including potential software and staffing needs.
Sarah (county staff) told the commission that converting to GAAP would likely require adding financial staff and that current county financial business systems can accommodate GAAP reporting. Staff said preparing a request for proposals for a new financial business system is already under way and will take most of 2025 to complete.
Members of the public urged the commission to adopt GAAP. Brent Bovey, a rural Douglas County resident, said GAAP accrual accounting provides “additional transparency” and argued the county should have switched years earlier as its budget grew. Thomas Duggar, a resident with an accounting background, also advocated for GAAP as the standard used by other governments and large organizations.
Commissioners also agreed to schedule a work session for staff to review accounting options and the county’s current capacity. The adopted resolution waives GAAP reporting for fiscal year 2025 per KSA 75-1120aa and asks staff to return with a cost-benefit analysis and timeline for potential transition.
Outcome: Resolution to waive GAAP reporting for FY2025 adopted Jan. 22, 2025. Commission directed staff to study conversion costs, staffing needs and timeline and to present findings at a work session and future meetings.
