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CSCU staff brief regents on GASB 103 reporting changes and student worker pay adjustment
Summary
Controller Annette Pavone outlined how GASB 103 will change financial statements (new noncapital subsidies section, Pell grants considered operating, separate presentation of major component units), and system HR reported the minimum wage increase to $16.94 will raise student worker costs by roughly $537,000 systemwide.
Controller Annette Pavone briefed regents on expected effects of GASB 103 on FY26 financial reporting, and Assistant VP Jennifer Person summarized adjustments to student worker pay ranges after Connecticut’s minimum wage increase.
Pavone said GASB guidance will require clearer management discussion and analysis, a new "noncapital subsidies" section to capture items like state appropriations, reclassification of Pell grants as operating revenues, simplified treatment of unusual or infrequent items, and separate presentation or GASB conversion for major FASB‑reported foundation component units. "There are several changes... the first one is regarding the management discussion and analysis," Pavone said, and later noted her memo has been shared with institutional controllers and will be reviewed with Grant Thornton.
Jennifer Person explained that Public Act 19‑4 requires annual adjustment to Connecticut's minimum wage based on the employment cost index; as of 06/30/2025 the index rose 3.6%, producing a new minimum wage of $16.94 effective 01/01/2026. She estimated the annualized cost across the system at just over $537,000 and described centralized processing for more than 3,000 transactions to bring employees to the new minimum.
Regents discussed presentation and transparency improvements and a work plan led by institutional CFOs to recast FY25 data into proposed formats ahead of the FY27 spending plan. The committee accepted the informational briefings and moved on to closing business.
