Sarasota County, Florida Notes to Financial Statements September 30, 2023 W. SUBSCRIPTION-BASED IT ARRANGEMENTS (SBITA) The County has entered into various SBITA agreements, primarily for Software as a Service (SaaS). SBITA is defined as a contract that transfers the right to use another entitys subscription asset for a specific period of time in an exchange or exchange-like transaction. Under these contracts, the County recognizes a SBITA liability and an intangible SBITA asset at the commencement of the SBITA term in the government-wide financial statements or Proprietary Funds Statement of Net Position. The SBITA liability is measured at the present value of payments expected to be made during the SBITA term. The SBITA asset is measured at the amount of the initial measurement of the SBITA liability. The future SBITA payments are discounted using the interest rate implicit in the SBITA contract. If the interest rate is not available, the County uses its incremental borrowing rate. X. IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARDS STATEMENTS The County implemented the following GASB Statements during the fiscal year ended September 30, 2023: (1) Statement No. 91, Conduit Debt Obligations, provides a single method of reporting Conduit Debt Obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement was fully implemented for fiscal year 2023. (2) Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, objective is to improve financial reporting by addressing issues related to publicprivate and public-public partnership arrangements (PPPs). This statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). Uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This statement was fully implemented for fiscal year 2023 with no impact to the Countys financial statements. (3) Statement No. 96, Subscription-Based Information Technology Arrangements, establishes uniform accounting and financial reporting requirements for SBITAs; improves the comparability of governments financial statements, and enhances the understandability, reliability, relevance, and consistency of information about SBITAs. This statement was fully implemented for fiscal year 2023. Y. FUND BALANCE REPORTING AND GOVERNMENTAL FUND-TYPE DEFINITIONS Fund Balances are limited to the governmental funds and are reported in the Governmental fund financial statements in the following classifications: Non Spendable Fund Balance - Amounts that are (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted Fund Balance - Amounts that can be spent only for specific purposes stipulated by (a) external resource providers such as creditors (by debt covenants), grantors, contributors, or laws and regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance - Amounts that can be used only for the specific purposes determined by a formal action of the Commissioners, the Countys highest level of decision making authority, with formal action occurring prior to fiscal year-end. Commitments may be changed or lifted only by the Commissioners taking the same formal action (resolution) that imposed the constraint originally. Assigned Fund Balance - Includes spendable fund balance amounts, pursuant to the Financial Reserves Policy Resolution 2022-198, established by the Chief Financial Management Officer or their designee that are intended to be used for specific purposes that are neither considered restricted or committed. 92
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