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GASB changes will alter how South Ogden accrues sick leave and presents budget schedules, auditor says
Summary
Auditor summarized new GASB pronouncements affecting compensated absences and presentation changes (GASB 101 and upcoming GASB 103), which require accrual estimates for sick time likely to be paid or used and will change budget schedules and MD&A formatting.
Peter explained that new Governmental Accounting Standards Board pronouncements require changes to how municipalities account for compensated absences and present certain lines in financial reports. "The new standard that came out was GASB 101, and that changed compensated absences a little bit... now you have to accrue it if it's going to be paid out or used," he said, noting that staff must estimate average usage and record estimates for sick-time liabilities.
Peter added that next-year presentation changes (GASB 103) will alter budget schedules and the MD&A and could move some lines on the income statement. He acknowledged that the accrual process involves judgment—estimating how much sick time employees will use—but said auditors worked with staff to implement the changes for the current audit.
