I am seeking information on how libaries and their parent municipalities are, or will be, dealing with the new audit requirements that will soon be required as a part of GASB 34.
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GASB 34 will be implemented for fiscal years beginning after June 15, 2001 (for large entities), with a three-year phase-in of the standard for all government jurisidictions. Most observers are describing it as the most monumental change in government financial reporting in American history. The common wisdom is that failure to follow the guidelines set by the Government Accounting Standards Board will cost communities dearly when their bonds are rated.
Traditionally, state and local governmental agencies have used cash accounting methods to report infrastructure assets like roads, bridges, water and sewer facilities and, of course libraries. With cash accounting,the capital cost of an infrastructure investment appears in an agency’s annual financial report during the year in which the cost of construction is incurred. The value of existing physical assets do not appear on financial reports.