May was a busier month for the standard setters! The GASB has celebrated its 40th anniversary and issued a new standard, the 2024 Compliance Supplement was officially issued by the OMB, and the ASB approved SSAE 23.
On May 28, the GASB updated its financial reporting model by issuing GASB 103, Financial Reporting Model Improvements. It provides key targeted improvements related to:
- Management’s discussion and analysis
- Unusual or infrequent items (previously known as extraordinary and special items)
- Presentation of the proprietary fund statements
- Major component unit information, and
- Budgetary comparison information
The requirements of Statement 103 are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Early application is encouraged.
Additionally, on May 29, the OMB issued the 2024 Compliance Supplement. While providing guidance on the audits for entities with fiscal years beginning after 6/30/2023, it also provided much needed guidance around the application of the new Uniform Guidance. The changes to 2 CFR Part 200, Subpart F, which includes an increased audit threshold of $1,000,000, is now explicitly for auditee fiscal years beginning on or after October 1, 2024 which means that entities will not be able to take advantage of the increase in threshold until December 31, 2025 and June 30, 2026 fiscal year ends. Major changes to the Compliance Supplement are included in Appendix V. Of note, only four programs are considered higher risk this year (Medicaid Cluster, Emergency Rental Assistance, CSLFRF and Abandoned Mine Land Reclamation).
In other news, on May 15, the ASB approved SSAE 23 as part of the Suite of Quality Management Standards. SSAE No. 23 deletes the defined term “other practitioner” and replaces it with two new terms – “participating practitioner” and “referred-to practitioner.” The amendments differentiate the requirements related to other practitioners who are part of the engagement team (participating practitioners) and those who are not part of the engagement team (referred-to practitioners). December 15, 2025 deadline for firms to design and implement new QM systems for their accounting and auditing practices and to perform services in accordance with the new standards for engagements beginning on or after that date.
Stay tuned next month for more updates!
