[CAFR-Contacts-News] Irrevocable Split-Interest Agreements

[HAMILTON Robert W * DAS]

Hello CAFR Contacts,

The GASB recently issued an Exposure Draft proposing recognition and measurement guidance for governments that benefit from irrevocable split-interest agreements.  Irrevocable split-interest agreements are arrangements in which a donor transfers assets for the shared benefit of at least two beneficiaries: a government - typically a public college or university or public healthcare provider - and another beneficiary designated by the donor. The donor transfers the assets to either the government or to a separate third party, such as a bank.

The Exposure Draft, Accounting and Financial Reporting for Irrevocable Split-Interest Agreements<http://gasb.us3.list-manage1.com/track/click?u=e043e1190253df702a1340ed7&id=c4355bbd36&e=2631ed37c7>, addresses when these types of arrangements constitute an asset for accounting and financial reporting purposes in cases where the resources are administered by a third party. The proposal also seeks input on expanded guidance for irrevocable split-interest agreements in which the government holds the assets.

The full text of the Exposure Draft<http://gasb.us3.list-manage2.com/track/click?u=e043e1190253df702a1340ed7&id=43b5653cd2&e=2631ed37c7> is available on the GASB website, www.gasb.org<http://gasb.us3.list-manage2.com/track/click?u=e043e1190253df702a1340ed7&id=16635ae3c2&e=2631ed37c7>.

To help SARS determine whether this proposal will have an impact on the State, please let me know by the close of business on Friday, July 24th, if your agency is a beneficiary to any split-interest agreements, and if so, whether the resources are held by a third party or your agency.

At this point, we're aware that many of the university foundations are beneficiaries of split-interest agreements, but we are not aware of others.

If you have any questions, please let me know.

Thank you,

Rob

Robert W. Hamilton, CPA
Statewide Accounting and Reporting Services Manager
Chief Financial Office
Department of Administrative Services
Phone:  (503) 373-0299
http://oregon.gov/DAS/CFO/SARS<http://oregon.gov/DAS/SCD/SARS>

Data Classification: Level 1 - Published

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