Auditor explains GASB 103 and 104 changes; mostly reporting adjustments not new accounting

CLA auditors walked the committee through two new GASB pronouncements the city must address. On GASB 103, the auditor said governments will need to reformat the management's discussion and analysis (MD&A) into more structured buckets and recategorize certain non-operating items into a new "subsidies" category to better reflect enterprise fund economics.

"The 1st 1 is GASB 103, which is financial statement, reporting improvements," the auditor said, noting that much of the work is compiling existing data into a new format and adding high-level footnote explanations for significant budget variances. On GASB 104 the auditor said disclosures for capital assets and leased assets will require more granularity in footnotes and that assets held for sale may need reassessment if markets are inactive.

Marcia Solo said the finance team has already begun reviewing budget items and anticipates most of the information needed is already generated for council reporting; the task is to adapt it for the financial statements and RSI.