A GAAP Waiver should be passed every year at the same time the library would pass a budget resolution.
GAAP is an acronym meaning "generally accepted accounting principles." A GAAP Waiver is a resolution passed by the library board excluding library accountants from following K.S.A. 75-1120a(c)(1) requirement that all government organizations use Generally Accepted Accounting Principles (GAAP). The reason libraries do not use GAAP is because libraries use cash basis accounting and GAAP does not handle well the requirements of the cash basis law. The library board passes this resolution each year and the resolution is then kept on file in the library.
The sample resolution below is from http://da.ks.gov/ar/muniserv/GaapWaiverProcedures.htm
WHEREAS the Trustees of __________________ Library has determined that the financial statements and financial reports for the year ended _______________ to be prepared in conformity with the requirements of K.S.A. 75-1120a(a) are not relevant to the requirements of the cash basis and budget laws of this state and are of no significant value to the Trustees of ____________ Library and
WHEREAS there are no revenue bond ordinances or resolutions or other ordinances or resolutions of the municipality which require financial statements and financial reports to be prepared in conformity with K.S.A. 75-1120a(a) for the year ended _________.
NOW, THEREFORE BE IT RESOLVED, by the Trustees of ____________ Library in regular meeting duly assembled this _________ day of _____________, 20_____ that the trustees of __________________ Library waives the requirements of K.S.A. 75-1120a(a) as they apply to the Trustees of _____________________ Library for the year ended __________________.
BE IT FURTHER RESOLVED that the library board shall cause the financial statements and financial reports of the _____________ Library to be prepared on the basis of cash receipts and disbursements as adjusted to show compliance with the cash basis and budget laws of this State.
