GASB 94 — Public-Private and Public-Public Partnerships and Availability Payment Arrangements

Introduction

Thank you for taking time to complete this questionnaire pertaining to the following Governmental Accounting Standards Board (GASB) statement: GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements.

Agency management is responsible for ensuring proper accounting and reporting of Public-Private and Public-Public Partnerships (PPP) and/or Availability Payment Arrangements (APA) under GASB 94. Submission of this questionnaire serves as an “acknowledgment of review” of the agency’s operations for potential arrangements.

GASB 94 examines arrangements between the state (the transferor) and a governmental or non-governmental entity (the operator) to provide public services. This is accomplished by the transferor allowing the operator to have control of the right to operate or use a nonfinancial governmental asset (like infrastructure or any other capital asset) for a period of time in an exchange or exchange-like transaction.

Note: For reporting purposes, a Public-Public Partnership is not between state agencies, between state universities, or between a state agency and a state university.

There are three scenarios under which a contract is recognized as a Public-Private and Public-Public Partnership (PPP):
1. An underlying PPP asset is an existing asset of the transferor at the commencement of the PPP term and the operator makes improvements to the asset. See an example here.
2. An underlying PPP asset is a new asset purchased or constructed by the operator and the PPP meets the definition of a Service Concession Arrangement (SCA). See an example here.
3. An underlying PPP asset is a new asset purchased or constructed by the operator and the PPP does not meet the definition of an SCA. See an example here.

Submit responses to this questionnaire by Aug. 15, 20CY.

If you have any questions, contact your financial reporting analyst.