1. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com What’s Your Library Worth? GASB 34 Accounting Rules

2. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Overview Boss Tweed & Enron GASB is not a Government Agency Vision Quest – That Chair is an asset – You are a liability Barry Libert, Arthur Anderson

3. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Library Associations Where are the state and national library associations on this issue?

4. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Strategic Questions Did the Feds treat you well? Did the State treat you well? Did the region/county treat you well?

5. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Cash and Accrual Cash Modified Accrual Full accrual

6. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Generally Accepted Accounting Principles GAAP= BFS + RSI Basic Financial Statement Required Supplementary Information – MD&A – Management Discussion and Analysis

7. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Implementation Schedule June 15, 2001: – Communities over $100M June 15, 2002: – Communities over $10M June 15, 2003 – All others

8. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Assets What should be included as assets in a library according to GASB 34? Land Shelving Equipment Value over $5,000 Useful life over 1 year Not computer workstations

9. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Collection Should library collections be counted as capital in the annual audit? NASCT says yes Texas Comptroller says no.

10. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Exemplary City Is there an example of a small city that has documented library related GASB 34 issues?

11. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com MDA How is the “Management Discussion and Analysis” changed under GASB 34? – Easy to read assessment – Foes cast doubts – Friends sow seeds

12. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Two Scenarios Underinsured library flooded – Needs new bond issue Public works has a building plan and projections on investment strategies, the library has an extensive building plan but no investment strategy in the city audit. Which gets funded?

13. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Capital Costs What is the cost for library buildings and spending on library capital costs nationally? – On 0.8 to 1.9 Square Feet per capita – Wisconsin 16 cents per operating dollar for capital – Nationally $3 per capita capital and $24 per capita capital.

14. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Library Journal Building Costs

15. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Asset management Growing trend for library bond issues to include capital funds to build materials budgets. For insurance purposes books are often capital How do you depreciate an asset you hold but have never capitalized?

16. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Computer issues Workstations and PCs as “consumables” not assets Treatment of software from a vendor as capital expense. Shares in a shared circulation system

17. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Further Information Where can I find more written information on GASB 34? – http://www.accounting.rutgers.edu/ra w/gasb/pub/index.html

18. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Listserv Is there a listserv on GASB? – http://www.gfoa.org/gfoa2000/ga sbfrum.htm

19. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Impact Fees Not for existing deficiencies – Therefore assess needed book stock and building size Plan for current revenue per standard Impact fees only for new residents’ impact

20. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Conclusion haplr-index.com

21. Thomas J. Hennen Jr. Tennessee Library Association Conference March 2002haplr-index.com Frequently Asked Questions