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Board discusses GASB 103 variance threshold, defers final decision
Summary
The board heard an explanation of the new GASB 103 variance guidance and debated a district threshold; auditors recommended 25% but trustees discussed a smaller percentage with a dollar floor and asked staff to return with more information.
Board members discussed GASB 103, a new accounting standard that requires districts to set variance thresholds for reporting significant variances in audited financial statements.
Speaker 4 explained the guidance and said the auditor recommended a 25% threshold for districts, noting that anything above that threshold would require an explanatory narrative in the audit. Speaker 4 summarized: “the auditor was here for the site visit last week, and we just need to determine what our variance threshold is.”
Several trustees said 25% may be high given the district’s small budget and suggested alternatives such as a 10–15% threshold combined with a fixed floor (for example, $10,000) to avoid requiring explanations for immaterial variances. Speaker 4 offered to email additional details from the auditor and the board left the decision for a later meeting or a special session if needed; no formal motion to set the threshold was recorded.
