The Property Accounting Office and Controllers Office are informing you of required changes to the Space Rental/Lease Account Codes due to Governmental Accounting Standards Board (GASB) No. 87 on Leases to be implemented July 1, 2020.
The statement requires the university to recognize an intangible asset and lease liability on its financial statements and footnote disclosures. As a result, we have analyzed the account code structure to separate expenditures for leases from the regular space rental account codes 65500-65539. The statement also requires us to split out Common Area Maintenance (CAM) expenses, as stated below:
- Payments for maintenance activities, including CAM (e.g., cleaning a lobby of a building, utilities, removing snow from a parking lot for employees and customers), are considered non-lease components and are accounted for separately.
Currently, in Management Reports, the Space Rental Account Codes are identified as: Space Rental, account number range 65500-65539, however, this account code structure does not provide the granularity required to implement the new lease requirements.
The Account Codes in the table below MUST be used in ALL Budget planning and then categorized for the dollars that are submitted for the upcoming fiscal year (July 1, 2020 – June 30, 2021) and thereafter. This is a regulatory financial requirement.
Revised Space Rental/Lease Account Codes (effective July 1, 2020):
| Begin | End | Description | Short Description | Comments |
|---|---|---|---|---|
| 65500 | 65509 | Space Rental (non GASB87) for short term space rentals and leases less than 12 months | Space Rent | Non Lease Related |
| 65510 | 65519 | Lease Rent Intra Univ GASB87-for long term leases greater than 12 months | LSE INTRA | Real Estate Admin |
| 65520 | 65529 | Lease Rent 3rd Party GASB87-for long term leases greater than 12 months | LSE 3RD | Outside University |
| 65530 | 65539 | Lease Cam Intra Univ GASB87-for long term leases greater than 12 months | CAM INTRA | Real Estate Admin |
| 65540 | 65544 | Lease Cam 3rd Party GASB87-for long term leases greater than 12 months | CAM 3RD | Outside University |
These changes will be effective as of July 1, 2020. However, for any new Recurring Lease Payment Purchase Order setups, the new accounts will be effective immediately.
If you have any questions please call Mark Hamilton 213-1401, Rob Allen 581-5635 or Todd Kapos 581-5077.
