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ACCOUNTING AND AUDITING UPDATES. The follo-wing as a summary of Governmental Accounting Standards Board (GASB)-standards expected to be implemented in the next few years. GASB Statement No. 102; Certabi Risk Disclosures The objective of this statement is to provide users of government financial statements with essential information about risks related: to a government's vulnerabilities -due to -certain concentrations or constraints. This statement defiries*a concentration as a lack of °diversity related to an aspect. of a significant inflow of resources -or outflow of resources. A constraint is a ftjtaiion imposed.on.-a government. by an extexnal: parry :or by forma[ action of the govermnent's highest level of -decision -making -authority.. Concentrations.. and constraints may liniitA government's ability to acquirb.resources or -control spMdin9*. A goyf.-m rient. will be -required to assess whether a concentration or constraint makes flee primary govei, imerit reporting.uriit.tir other reporting units -that report -a liability f'or re%>eriue debt vulnerable to the. risk af.a substantial' impact: Additionally, a government must assess whether an event or events associated with a- concentration or constraint that could cause. the substantial impact t.ohave occurred, have. begun :to occur.. or are more likely than not to begin to occur within 12 months of the date the financial statements -are issued. If a government determines that those criteria for disclosure have been met for a concentration or constrainer it should* disclose information (as odilined in the standard) in notes .to financial statements in sufficient :detail to., enable users -of financial statements to understand the nature. of the circumstances disclosed *and -the government's vulnerability %to the risk of a substantial imI%ct.: The disclosures should also include-anv actions taken by xhe .government to mitigate the risk. The requirements of this. statement are effective for fiscal years beginning after. June 15, 2024, and all reporting peribds thereafter. Earlier application: is encouraged. GASB Statement No:103, Rmanrial *Reporfing Model Improvements The objective of this statement is to improve kev components of the financial reporting model to enhance -its effectiveness in providing information .that. is essential for decision making and assessing a government's.*accountability.'Thisstatement. also. addresses certain application-issut:s. This statement continues the requirement that the basic. financial statements :ba preceded. by management's discussion and analysis (MD.&A). which is presented *as required supplementary information (RSI). This .statement requires that the information presented in MD&A. be limited to the related topics discussed in five sections: (I) Overview of 'the Financial Statements, (2) Financial Summary, (3) Detailed .Analyses, (4) Significant Capital Asset and Long -Term financing Activity, and (5) Currently Known Facts; Decisions, or Conditions. Furthennore, this statement stresses that the detailed analyses should explain why balances and results of operations changed rather titan simply presenting the amounts or percentages: by which tltey dianged.. In addition, this statement continues the requirement that information included .in MD&A distinguish between that:of the'primary government and its -discretely presented component units.. This statement defines unusual or infrequent4tems: as transactions and other events that are either unusual hfnature:or infrequent in occurrence and requires governnients todisplaythe inflows and outflows related to each unusual -or infrequent item separately. -17-