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The City of Portland, Oregon

Office of Management & Finance

Bureau of Technology Services

BTS HelpDesk: 503-823-5199

1120 SW 5th Avenue, Suite 1111, Portland, OR 97204

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Lease Accounting

Logo for the Governmental Accounting Standards Board.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

Success Criteria

  • 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


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



Logo for the GASB organization.