What is a Subscription-Based Information Technology Arrangement (SBITA)?

  1. Per the Governmental Accounting Standards Board (GASB) Summary of Statement for GASB 96, a subscription-based information technology arrangement (SBITA) “is defined as a contract that conveys control of the right to use another party’s (an SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.” 

  2. UNC Charlotte enters SBITAs with external parties for the right to use their information technology software and cloud computing services.

  3. Software subscription expenses should be recorded to account 924890, Software Subscriptions, and the Reporting Team will determine the proper accounting treatment.

  4. If your department is entering into a software subscription agreement for $250,000 or more in total over the life of the contract, please send a copy of the related agreement to the Financial Reporting Team at FinancialReporting@charlotte.edu.