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Douglas County commissioners again waive GAAP requirement for fiscal 2025; staff to study conversion costs
Summary
The Douglas County Commission voted to adopt a resolution waiving generally accepted accounting principles (GAAP) for fiscal year 2025 under Kansas statute; commissioners asked staff for a work session and a cost analysis of converting to GAAP accounting.
The Douglas County Board of County Commissioners voted to adopt a resolution waiving the requirement to use Generally Accepted Accounting Principles (GAAP) for the county’s financial reporting for fiscal year 2025 and will ask staff to study the costs and timeline for a possible future conversion.
Commissioner Reid moved to adopt the waiver under K.S.A. 75-1120aa; the motion was seconded and passed on a voice vote. There was no roll-call tally recorded on the public audio; commissioners spoke in favor of directing staff to prepare additional analysis.
Commissioner Dorsey, who has been raising the conversion question, said local peer counties generally use GAAP and noted a potential benefit to accessing a AAA bond rating. "Nobody likes change. I don't like change. I'm used to GAAP accounting," Dorsey said, and he urged a study to estimate cost and timeline for conversion. County staff said the county’s current financial system could support GAAP and that preparing GAAP financial statements would likely require adding certified financial staff and additional auditor costs.
Several members of the public urged the county to adopt GAAP. Brent Bovee of rural Douglas County criticized the waiver, saying the "first reason of simplification completely misrepresents the facts" and that GAAP would provide greater transparency. Thomas Dugger, an accounting graduate, said GAAP "should be the only choice because it makes sense".
Commissioners agreed to schedule a work session for staff to provide more detail about conversion costs, staffing implications and timing. Staff said a request-for-proposal process for a new financial/business system is planned for 2025 and that system choices would support a switch if the commission decides to proceed. The board adopted the waiver for FY2025 but directed staff to return with a cost-benefit analysis and to place a work session on the calendar.
The board did not change current-year taxes or budgets at the meeting; any fiscal impacts of converting accounting methods would be considered in future budget cycles.
