Overton Accounting Policy Change Could Complicate ARP Spending

New accounting practice coming from the State’s Comptroller’s Office could have an impact on local American Rescue Plan projects.

The policy called GASB 34 requires a county to keep up with asset depreciation. Overton County Executive Ben Danner said this means water utility districts will need to balance costs for possible water extension projects through ARP.

“Because of GASB 34, the water utility they are going to have to depreciate it and sometimes they may have to raise rates because on their assets it has to equal out,” Danner said. “So they may have to raise rates to make up the difference.”

Danner said he hopes that the free federal COVID money does not turn into a rate change. Danner said he finds that the new accounting policy creates a complicated situation.

Danner said Overton County’s accounting policies have not been updated for some 20 years. A report from the Comptroller’s Office recommended the change. Danner said the report did not include any findings.