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Butler County adopts new lease and subscription asset policies to implement GASB guidance
Summary
On June 11, 2024 the Butler County Board of Supervisors approved two resolutions implementing GASB guidance: a Right-To-Use Lease Asset Policy with a $5,000 capitalization threshold and a Right-To-Use Subscription Asset Policy with a $100,000 threshold. Both resolutions include measurement and straight-line amortization guidance.
The Butler County Board of Supervisors on June 11 approved two new asset policies to implement Governmental Accounting Standards Board guidance for leases and subscription arrangements.
Leslie Groen, the county auditor, presented Resolution #2006-2024 to adopt a Right‑To‑Use Lease Asset Policy under GASB Statement No. 87 and Resolution #2007-2024 to adopt a Right‑To‑Use Subscription Asset Policy under GASB Statement No. 96. The board voted to adopt both resolutions during the regular meeting.
Why it matters: GASB 87 (effective July 1, 2021) and GASB 96 (effective July 1, 2022) require governments that report on an accrual basis to recognize certain intangible right‑to‑use assets and related liabilities. The policies set Butler County’s local rules for which contracts are recognized, how assets are classified and how amortization is calculated.
Key provisions: The lease policy establishes criteria for recognition consistent with GASB 87, lists exclusions (for example, licensing of software, biological assets, inventory and certain service concession arrangements) and adopts a $5,000 capitalization threshold: "All right‑to‑use lease assets at or above $5,000 must be reported." The subscription policy (GASB 96) adopts a $100,000 threshold for subscription‑based information technology arrangements (SBITA) and requires the county to measure subscription assets at the present value of expected payments, include precommencement payments and initial direct costs, and amortize on a straight‑line basis over the shorter of the subscription term or the useful life of the underlying asset.
Votes and procedure: The transcript records the resolutions as adopted on June 11, 2024. For Resolution #2007-2024 the recorded roll call lists ayes from Wayne Dralle and Greg Barnett and no nays. For Resolution #2006-2024 the transcript records the roll as: AYES: Wayne Dralle; NAYS: None; ABSENT: Rusty Eddy; the minutes also record earlier motions as carried with "all ayes." The board members present participated in the motions and approvals during the meeting.
What’s next: The policies require departments to apply the thresholds consistently and disclose right‑to‑use assets by major class (land, buildings, equipment and other improvements). The policies establish implementation measurement dates (July 1, 2021 for leases; July 1, 2022 for subscriptions) for reporting purposes.
The board took the actions during its regular meeting and declared the resolutions adopted on June 11, 2024.
