Direct and Overlapping Property Tax Rates

Union Public Schools Notes to the Financial Statements

FOR THE YEAR ENDED JUNE 30, 2021

NOTE K -NEW PRONOUNCEMENTS

The District did not adopt any new accounting pronouncements in fiscal year 2021.

New Accounting Pronouncements Issued Not Yet Adopted: The GASB has issued several new accounting pronouncements, which will be effective for the District in future fiscal years. A description of the new accounting pronouncements are described below:

GASB Statement No. 87, Leases, issued June 2017, will be effective for the District beginning with its fiscal year ending June 30, 2022, with earlier adoption encouraged. Statement No. 87 establishes a single approach to accounting for and reporting leases by state and local governments. Under this statement, a government entity that is a lessee must recognize (1) a lease liability and (2) an intangible asset representing the lessee’s right to use the leased asset. In addition, the District must report the (1) amortization expense for using the lease asset over the shorter of the term of the lease or the useful life of the underlying asset, (2) interest expense on the lease liability and (3) note disclosures about the lease. The Statement provides exceptions from the single-approach for short-term leases, financial purchases, leases of assets that are investments, and certain regulated leases. This statement also addresses accounting for lease terminations and modifications, sale-leaseback transactions, non-lease components embedded in lease contracts (such as service agreements), and leases with related parties. Under this Statement, a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.

GASB Statement No. 96, Subscription-Based Information Technology Arrangements ("SBITAs"), issued May 2020, will be effective for the District beginning with its fiscal year ending June 30, 2023, with earlier adoption encouraged. Statement No. 96 requires the recognition of SBITAs as an intangible right-to-use subscription asset with a corresponding subscription liability. Under this statement, a lessee is required to recognize a SBITA lease liability and an intangible right-to-use SBITA lease asset, and a lessor is required to recognize a lease SBITA receivable and a deferred inflow of resources.

GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans - An Amendment of GASB Statements No. 14 and No. 84, and Supersession of GASB Statement No. 32, issued June 2020, will be effective for the District beginning with its fiscal year ending June 30, 2022, with earlier adoption encouraged. Statement No, 97 requires the application of criteria for potential component unit reporting in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements.

The District is currently evaluating the impact that these new standards may have on its financial statements.