Thrun Law Firm recently finalized a guidance manual (Guidance) on the legal considerations related to the implementation of Governmental Accounting Standards Board Statement No. 84, Fiduciary Activities (GASB 84). The Guidance focuses on legal requirements and practical recommendations related to the widespread changes in school operations after GASB 84’s July 1 implementation date. GASB released its Final Implementation Guide on June 17, 2019, thus our analysis is current and includes all available state and federal guidance.
GASB 84 is not just an accounting or financial reporting change. Instead, it is a broad change to school operations, particularly with respect to parent support groups and co-curricular and extracurricular programs.
Failure to complete the recommended implementation steps, which include creating or revising board policies, will result in confusion and increased liability for schools.
One significant GASB 84 requirement is the elimination of student activity funds, which number in the hundreds for many schools and have been used by schools for over 20 years. Most of these funds will be re-characterized as “public funds,” but GASB 84 generally will require compliance with the rules and regulations (e.g., the Revised School Code) already applicable to a school’s public funds.
The Guidance will assist school officials with navigating the new GASB 84 requirements and provide a better understanding of permissible expenditures.
The Guidance will be available for purchase for a nominal fee beginning Monday, July 1, 2019. Thrun Law Firm’s retainer clients will receive an email providing further details on that date.