Total revenue refers to revenues for governmental and enterprise funds for the first fiscal year ending after June 15, 1999. GASB No. 34, paragraph 143 reports "for purposes of identifying the appropriate implementation phase, revenues include all revenues (not other financing sources) of the primary government’s governmental and enterprise funds, except for extraordinary items as defined in paragraph 55 terminology." Some New Jersey districts are considered to be a component unit of a primary government. Recent guidance issued by the New Jersey Division of the Local Government Services through the New Jersey Department of Education, identifies County Vocational, County Special Services and Type 1 school districts as component units of either their county or municipal government. Other district types should specifically determine and document their status according to the guidelines provided by GASB No. 14, which indicates that a primary government includes a special-purpose government (such as a school district) that meets all of the following criteria:

Has a separately elected governing body.
Is legally separate.
Is fiscally independent of other state and local governments.

A New Jersey district (other than the aforementioned County Vocational, County Special Services, or Type 1 District) should evaluate whether it is a primary unit based upon the above criteria. The New Jersey Department of Education recommends consultation with your district’s independent auditor for the purpose of determining and documenting your district’s status.

If your district is a primary governmental unit, use the implementation schedule presented above. If your district is determined to be a component unit, GASB No. 34 must be implemented no later than the same year as the district’s primary government regardless of the amount of the component unit’s total revenues, and regardless of the year the primary government implements GASB Statement No. 34.

The next step is to begin your implementation checklist.