ACFR FY 2023 Final - Flipbook - Page 83
FINANCIAL SECTION
City of Eustis, Florida
NOTES TO FINANCIAL STATEMENTS
Note 3 - Change in Accounting Principle
For the year ended September 30, 2023 the City implemented GASb Statement Noÿ 96 Subscription based Information Technology Arrangementsÿ Statement Noÿ 96 provides guidance on the accounting
and onancial reporting for subscription-based information technology arrangements (SBITAs) for
the City. The new guidance is effective for oscal years beginning after June 15, 2022. No prior guidance exists for these specioc contracts. A key component of this deonition is the element of control.
Governments must evaluate each contract to determine whether the contract grants them control
over the underlying IT assetsÿ Similar to GASb 87, this requires assessing whether the government
has the right to both the present service capacity of the underlying IT assets and to dictate the
nature and manner of use of the underlying IT assets. Both of these speciocations must be met for
the government to have control, and therefore, for the contract to be a subscription-based information technology arrangementÿ
The City is in the process of reviewing possible impacts of GASb pronouncements which will become
effective in future years, and notes the following statements are applicable to the Cityÿ
" GASb Statement Noÿ 101, Compensated Absencesÿ This statement will become effective for the
City by oscal year 2025.
" GASb Statement Noÿ 102, Certain Risk Disclosuresÿ This statement will be effective beginning
oscal year 2025.
Note 4 - Stewardship, Compliance, and Accountability
Budgetary Requirements
The following procedures were used to establish the budgetary data reflected in the onancial
statements:
1ÿ by August of each year, the City manager submits to the City Commission a proposed operating
budget for the oscal year commencing the following October 1.
2ÿ Two public hearings were held to obtain taxpayer commentsÿ
3ÿ before October 1, a resolution legally enacts the budgetÿ
4ÿ budgets are legally adopted, and formal budgetary integration is employed as a management
control device during the year for the General Fund, all Special Revenue funds, and the pension
Trust Fundsÿ The budget adopted for the proprietary fund is derived in compliance with debt
covenantsÿ
5ÿ budgets for the governmental funds are adopted consistent with Generally Accepted Accounting
principles (GAAp)ÿ The budget for the enterprise fund is adopted on a non-GAAp basis to reflect
the budget versus actual information related to
