The Lease Account project will implement the Contract Lease Management portion of SAP’s Flexible Real Estate (RE-FX) module to enable the City to comply with the revised rules for the Governmental Accounting Standards Board (GASB) rule 87 requirements. 
 

State and local governments use a variety of leasing arrangements to stabilize cash flows and reduce risk and uncertainty. The newly issued rules on leases will fundamentally change lease recognition, measurement, and related disclosures for both government lessees and lessors.

The major changes outlined in GASB 87 are:

• Leases will be classified as “short-term,” “contracts that transfer ownership,” and “all other.”
• Leases that extend beyond 12 months will have a balance sheet impact on both the lessee and lessor.
• For all leases other than non-short-term, the lessee will recognize the intangible use asset, and the lessor will continue to depreciate and account for the lease asset.
• Financial statement disclosures and schedules will be required for contracts that transfer ownership and non-short-term leases.
• There will be no disclosure requirement for short-term lease outflows.

This implementation of SAP RE-FX includes activating, configuring, customizing, and integrating it with the City’s existing SAP landscape including Fixed Assets, Accounts Payable, and Accounts Receivable, Funds Management, and Grant Management.  A secondary goal is to establish a standardized process for lease accounting and management within the City.

• Optimize lease assets
• Support the regulatory compliance of GASB 87
• Standard process for lease accounting and management

• Able to report all lease activities as required in GASB 87
• Leases across the city will be accounted for and processed in a standardized method.

• Project must complete in time to meet the GASB 87 reporting rules

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Project Team

Team Member	Job	Project Function
Michelle Kirby	Chief Financial Officer	Executive Sponsor
Jeff Baer	BTS Director	Executive Sponsor
Diana Allen	EBS Division Manager	BTS Project Sponsor
Ron Vaught	BRFS Division Manager	BRFS Business Owner
Cindy Delozier	EBS FILO Lead	BTS Functional Owner
Joan Martin	EBS Sr. Business Analyst	BTS Functional Lead
Phil Marchbanks	EBS Sr. Business Analyst	BTS Functional Lead
Anand Adayappurath	EBS Technical Analyst	BTS Technical Lead
Alain Labreque	Project Manager	BTS Project Manager
Charlie Dudley	EBS Training & Development	Documentation, Training, Communications