¾«Æ·SMÔÚÏßӰƬ

¾«Æ·SMÔÚÏßӰƬ 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 ¾«Æ·SMÔÚÏßӰƬ 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 ¾«Æ·SMÔÚÏßӰƬ in order to provide public services. The third party receives payment for providing the services to the public and in turn compensates ¾«Æ·SMÔÚÏßӰƬ 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 ¾«Æ·SMÔÚÏßӰƬ students who stay in the dorm. In exchange, ¾«Æ·SMÔÚÏßӰƬ 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 ¾«Æ·SMÔÚÏßӰƬ, ¾«Æ·SMÔÚÏßӰƬ must also recognize any P3 agreements where ¾«Æ·SMÔÚÏßӰƬ 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 ¾«Æ·SMÔÚÏßӰƬ or if ¾«Æ·SMÔÚÏßӰƬ is providing public services on behalf of another governmental entity. Ìý