Regular Fire Board Meeting - November 29, 2023

Agenda Item #6. B.

TO:

Governing Board Members

FROM:

Marcarlo Roanhorse, Administrative Assistant

APPROVED BY:

Dewayne Woodie, Fire Chief

SUBJECT:

Resolution No. GFD 2024-001

DATE:

November 28, 2023

It was recommended by our financial auditors, Saunders Company Ltd., that Ganado Fire District adopts an accounting policy under the General Accounting Standards Board (GASB) 87. This policy will state that the district is an independent government, and it chooses to follow the GASB 87 policy that requires any governmental agency to report to the Arizona Auditor General if we exceed $20,000 on a lease agreement with another government agency. If we do not implement this policy, the district will have to go through a more extensive reporting process, and it will cost the district funds we don’t have available. The policy is written out in a resolution format that states that Ganado Fire District will implement the following accounting policy regarding GASB Pronouncement 87, with a limitation of inclusion under the lease standards of GASB 87 will be leased in excess of $20,000 (recommended by Saunders Company Ltd.). This is within the authority of the Fire Board according to A.R.S. §48-805(B)(2).

STAFF RECOMMENDATION: Staff recommend approving the accounting policy under the General Accounting Standards Board (GASB) 87.

LEGAL REVIEW: N/A

FINANCIAL IMPACT: This will save expenditure on annual auditing fees.

SUGGESTED MOTION: I move to approve Resolution No. GFD 2024-001: Adoption of Accounting Policy of Governmental Accounting Standards Board (GASB) 87: Limitation for Inclusion Under the Lease Standards.