Name and usage changes for the following existing leases and rentals spend categories:
Removing “Leases and” from the name
- Rentals Document Storage (SC51900)
- Rentals Equipment (SC51950)
- Rentals Other (SC52000)
- Rentals Property (SC52050)
These spend categories should only be used for non-lease transactions. To be in compliance with the new FASB lease accounting guidelines, effective July 1, 2019 for the University of Rochester, please contact UR Real Estate Office for space or UR Treasury for equipment if you have any lease transactions. Please refer to the UR Financials Chart of Account Spend and Revenue Category Definitions that will guide you how the above rentals spend categories should be utilized.
With recent adoption of updated accounting guidance on leases, please note that new ledger accounts (6346x for lease expense) and spend categories (SC71xxx) are in use for real estate and equipment leases. Lease expenses, such as rents, are now reported with the journal source Expense Recognition.
If you ran monthly ledger or transaction reports before 2:30pm on Wednesday, August 7, your lease expenses may not have been captured. We recommend you re-run those reports.
UR The Financial Accounting Standards Board (FASB) has issued new lease accounting guidelines that will directly affect operating leases with terms exceeding 12 months, particularly in areas with contractual / embedded lease agreements.
If you have any lease contractual agreements originating outside of Treasury, Real Estate, IT or are unsure if you manage a lease, please contact us at URLeaseAdministration@ur.rochester.edu. The UR Lease Administration team will follow the necessary steps and action to ensure those affected by the new standard are well informed and guided through a smooth transition process.
For more information and the timeline that follows this project, visit: http://www.rochester.edu/adminfinance/urfinancials/ur-lease-administration-project/. If you have any questions or concerns, contact us at: URLeaseAdministration@ur.rochester.edu.