What is GASB?

GASB Compliance

In June 1999, the Governmental Accounting Standards Board (GASB) released their new Statement 34 titled "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments", and In November 1999, GASB issued Statement 35 - "Basic Financial Statements and Management's Discussion and Analysis-For Public Colleges and Universities".

These Statements establishes new financial reporting requirements for an estimated 87,000 state and local governments and 4,200 Public Colleges and Universities throughout the United States. When implemented it will create new information and will restructure much of the information that governments and Universities have reported in the past on their annual financial statements. In short, the new annual reports give government and university officials a new and more comprehensive way to demonstrate their stewardship in the long term in addition to the way they currently demonstrate their stewardship in the short term and throughout the budgetary process.

"This is the most significant change to occur in the history of governmental and higher education financial reporting," said GASB Chairman Tom L. Allen.

GASB Implementation Timetable

• Large Governments with revenues of $100 million took effect in fiscal years beginning after June 15, 2001
• Medium-sized governments with revenues greater than $10 million, but less than $100 million, took effect in fiscal years beginning after June 15, 2002
• Smaller-sized governments with revenues less than $10 million took effect in fiscal years beginning after June 15, 2003.
  

Management discussion and analysis (MD&A)

MD&A will be an introductory narrative analysis of the financial statements and an analytical review of financial activities. The MD&A's goal is to give readers an objective and easily readable overview of the government's financial performance. Although it is required supplemental information (RSI), governments are required to present MD&A before the basic financial statements.

Government-wide financial statements

Government-wide financial statements will consist of a statement of net assets and a statement of activities. Prepared using the economic resources measurement focus and the accrual basis of accounting, these statements should report all of the assets, liabilities, revenues, expenses, and gains and losses of the government. Each statement should distinguish between the governmental and business-type activities of the primary government and between the total primary government and its discretely presented component units by reporting each in separate columns. Fiduciary activities, whose resources are not available to finance the government's programs, should be excluded from the government-wide statements. In addition, GASB has decided to continue requiring fund basis accounting. This means fund financial statements and new government-wide statements will be prepared as well as a reconciliation between the two statement types. The focus of the fund financial statements will change from fund types (general, enterprise, special revenue, etc.) to major individual funds. Non-major funds will be grouped together.