GASB 94: New accounting standard for public-private and public-public partnerships (P3s)
¶¶ÒõÂÃÐÐÉä Boulder will implement GASB 94 in fiscal year 2023. This new standard provides updated guidance for public-private and public-public partnerships (P3s). Ìý
A P3 is an arrangement that ¶¶ÒõÂÃÐÐÉä Boulder enters into with a third party, where the third party is given the right to operate or use a nonfinancial asset (either tangible or intangible) owned by ¶¶ÒõÂÃÐÐÉä Boulder in order to provide public services. The third party receives payment for providing the services to the public and in turn compensates ¶¶ÒõÂÃÐÐÉä Boulder in order to use the asset to earn that revenue.Ìý
The most common P3s for universities are arrangements to provide public services on behalf of auxiliary units. For example, a third party might construct a student dormitory and be allowed to collect payments from ¶¶ÒõÂÃÐÐÉä Boulder students who stay in the dorm. In exchange, ¶¶ÒõÂÃÐÐÉä Boulder will own the dormitory at the end of the term of the agreement.
In addition to P3 agreements where third parties provide public services on behalf of ¶¶ÒõÂÃÐÐÉä Boulder, ¶¶ÒõÂÃÐÐÉä Boulder must also recognize any P3 agreements where ¶¶ÒõÂÃÐÐÉä Boulder is allowed to use a governmental entity’s nonfinancial asset to provide public services on behalf of that governmental entity.
Please send any P3 agreements to Justin Church (justin.church@colorado.edu), whether a third party is providing public services on behalf of ¶¶ÒõÂÃÐÐÉä Boulder or if ¶¶ÒõÂÃÐÐÉä Boulder is providing public services on behalf of another governmental entity. Ìý