The City of Shelton is looking to convert its accounting system from GAAP (Generally Accepted Accounting Principles) to cash. According to the City’s Finance Director, Nola von Neudegg, only about 20 percent of local governments utilized GAAP and switching to cash will simplify the annual reporting process, reduce staff time, and make financial reports easier to understand.
The ordinance authorizing the conversion to cash based accounting has the change retroactive to January 1, 2016. Director von Neudegg says having the change effective for last year will make generating the 2016 annual report easier.
The Shelton City Commission held the first reading of the ordinance converting the City’s accounting from GAAP to cash on Monday. Second reading and adoption is expected during the Commissioners’ next meeting, 6 PM Monday, April 17th.