COMPLIANCE DEADLINE: JUNE 30, 2026

The Complete GASB 103 Compliance Checklist

The first major overhaul of government financial reporting since 1999. Your step-by-step guide to preparing before the fiscal year-end deadline.

90,000+

Entities Affected

Major Changes

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What's Inside the Checklist

A working compliance guide covering every GASB 103 requirement, organized by topic area with an implementation timeline.

MD&A analytical requirements — eliminate boilerplate, add known-facts disclosure
Budgetary comparison move to RSI — new variance columns and notes requirements
Proprietary fund operating vs. nonoperating classification updates
Major component unit separate presentation rules
Extraordinary/special items elimination — new GASB 62 framework
Month-by-month implementation timeline through June 2026
Materiality threshold guidance for variance explanations

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GASB 103 Compliance Checklist

Work through each section with your finance team. Check items off as you complete them. All requirements must be reflected in FY2026 financial statements (year-ending June 30, 2026).

1. Management's Discussion and Analysis (MD&A)

Review current MD&A for boilerplate language — GASB 103 requires specific, analytical content rather than generic descriptions

Add disclosure of known facts, decisions, or conditions expected to significantly affect finances in subsequent periods

Include economic and demographic trend analysis specific to your jurisdiction

Document budget development factors and assumptions

Address long-term liability management actions and strategies

Describe external regulatory changes affecting financial position

Ensure each financial trend is explained with specific context (e.g., "increases due to new infrastructure bond issuance" not "increases in general government support")

2. Budgetary Comparison Information

Move budgetary comparison schedules from basic financial statements to Required Supplementary Information (RSI)

Add a new column showing variance between original and final budget amounts

Retain existing column showing variance between final budget and actual amounts

Prepare notes to RSI explaining significant variances between original and final budgets

Prepare notes explaining significant variances between final budget and actual results

Establish materiality thresholds (typically 0.5%–1.5% of fund budget) in consultation with auditors

Review lease and SBITA reclassifications for budget transfer documentation

Present for general fund and each major special revenue fund with legally adopted budgets

3. Proprietary Funds, Component Units, and Item Classification

Proprietary Fund Statements

Distinguish between operating and nonoperating revenues and expenses

Separately report noncapital subsidies received and provided

Classify subsidies, endowment contributions, financing items, and investment income as nonoperating

Present disposal proceeds for capital assets and inventory as nonoperating items

Major Component Units

Present each major component unit separately in statements of net position and activities (unless it reduces readability)

If separate presentation is not used, include combining statements after fund financial statements

Extraordinary and Special Items

Eliminate "extraordinary" and "special" item classifications from financial statements

Replace with "unusual or infrequent" item identification per GASB Statement 62

Review and update all financial statement templates to remove old classifications

4. Your Implementation Timeline

Period	Actions
NOW (March 2026)	Audit current MD&A language, establish variance thresholds with auditors
April 2026	Update budgetary comparison templates, train staff on new RSI format
May 2026	Complete proprietary fund reclassifications, draft updated MD&A sections
June 2026	Fiscal year-end — all GASB 103 changes must be reflected in FY2026 statements
Post June 2026	Work with auditors to validate compliance, finalize financial statements

Important: Prior periods must be restated in comparative financial statements.

How ClearPoint Strategy Helps You Prepare

ClearPoint's strategic performance management platform helps local governments meet GASB 103 requirements efficiently:

Executive Dashboards that connect financial reporting to strategic performance measures — satisfying GASB 103's enhanced MD&A analytical requirements.

Automated Performance Reporting tied to fiscal cycles, ensuring your MD&A reflects specific, data-driven analysis rather than boilerplate.

Budget-to-Actual Variance Tracking with built-in reporting that maps to the new RSI requirements.

Over 1,200 local government agencies trust ClearPoint for strategic reporting and financial transparency.

Ready to simplify your GASB 103 preparation?

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Source: GASB Statement No. 103 | Effective for fiscal years beginning after June 15, 2025. All requirements verified against GASB, BDO, PKF O'Connor Davies, and Baker Tilly guidance.

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The Complete GASB 103 Compliance Checklist

What's Inside the Checklist

Get the Free Checklist

GASB 103 Compliance Checklist

1. Management's Discussion and Analysis (MD&A)

2. Budgetary Comparison Information

3. Proprietary Funds, Component Units, and Item Classification

4. Your Implementation Timeline

How ClearPoint Strategy Helps You Prepare

Ready to simplify your GASB 103 preparation?

featured article

GASB 103: What Local Governments Must Do Before June 30, 2026

featured case study

Velosio

featured Resource

City & State Government Strategy Maps

The Complete GASB 103 Compliance Checklist

What's Inside the Checklist

Get the Free Checklist

GASB 103 Compliance Checklist

1. Management's Discussion and Analysis (MD&A)

2. Budgetary Comparison Information

3. Proprietary Funds, Component Units, and Item Classification

4. Your Implementation Timeline

How ClearPoint Strategy Helps You Prepare

Ready to simplify your GASB 103 preparation?

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