The Governmental Accounting Standards Board (GASB) Statement 87-Leases establishes a single model for lease accounting, based on the principle that leases are a means to finance the right to use an underlying asset.  Lessees will be required to recognize a lease liability and an intangible right-to-use asset. Lessors will be required to recognize a lease receivable and a deferred inflow of resources. This means that nearly every lease (here are certain exceptions) where the University is either the lessee or lessor and has a term >1 year must be capitalized and depreciated, regardless of the dollar amount. Leases with a term greater than one year can no longer be accounted for as a rental expense. An offsetting liability or asset would be recognized and amortized over the lease life.

In order to comply with GASB-87 starting in FY2021 (July 1, 2020), University Financial Services has formed a cross-campus work group to implement the PeopleSoft Lease Administration module and identify the universe of leases that may be affected and develop procedures for implementing the new standard. PeopleSoft Lease Administration will interface with Asset Management, Accounts Payable, General Ledger, Billing, Purchasing, and Project Costing.