Common GASB Reporting Mistakes and How to Avoid Them 

For state and local governments, accurate financial reporting plays an important role in maintaining transparency, accountability, and public trust. Yet even experienced finance teams can encounter challenges when navigating Governmental Accounting Standards Board (GASB) requirements. Between evolving standards, complex transactions, and year-end deadlines, reporting errors can occur more easily than expected. 

Understanding where mistakes commonly arise can help government organizations identify gaps earlier, reduce reporting delays, and strengthen the reliability of their financial information. 

Confusing Fund-Level and Government-Wide Reporting 

One common source of reporting errors is the difference between governmental fund financial statements and government-wide financial statements. 

Governmental funds generally use the modified accrual basis of accounting, while government-wide statements use the accrual basis. These differences affect how organizations report capital assets, long-term liabilities, and certain revenues and expenses. 

Problems can arise when reconciliation entries are incomplete or supporting schedules do not align with reported balances. Without a clear understanding of these reporting differences, organizations may struggle to explain discrepancies or identify errors before the audit process begins. 

Consistent reconciliations and a clear understanding of reporting responsibilities can help finance teams recognize issues earlier. 

Overlooking Leases, Software Agreements, and Capital Assets 

Government organizations frequently manage contracts and assets across multiple departments. When information does not reach the finance team promptly, important transactions may be overlooked. 

GASB Statement No. 87 addresses lease accounting, while GASB Statement No. 96 establishes reporting requirements for certain subscription-based information technology arrangements. Lease modifications, software agreements, and contract renewals can create reporting challenges when documentation is incomplete. 

Capital assets present similar concerns. Unrecorded disposals, outdated asset records, and incomplete construction-in-progress information can affect financial statement accuracy. 

Communication between finance, purchasing, technology, and facilities departments can help organizations maintain greater visibility into transactions that affect financial reporting. 

Missing Disclosures and Falling Behind on New Standards 

Financial statement disclosures are another area where reporting mistakes frequently occur. Incomplete debt disclosures, inconsistent supporting information, or outdated Management’s Discussion and Analysis (MD&A) content can make financial reports less useful to stakeholders. 

New standards add complexity. GASB Statement No. 103 introduces changes to the governmental financial reporting model, including MD&A requirements, while GASB Statement No. 104 expands disclosures for certain capital assets. Both are effective for fiscal years beginning after June 15, 2025. 

Organizations relying heavily on prior-year reporting templates may overlook requirements that affect their current financial statements. 

Awareness of upcoming standards and early discussions about reporting expectations can help reduce last-minute adjustments and improve the overall reporting process. 

Building Confidence in Government Financial Reporting 

Avoiding common GASB reporting mistakes begins with understanding where reporting challenges originate. Strong communication, complete documentation, and awareness of changing requirements can make year-end reporting more manageable. 

At Brady Martz, our government professionals understand the complexities public sector organizations face when preparing financial statements. If your organization has questions about GASB requirements or upcoming reporting changes, connect with a Brady Martz professional to discuss your reporting priorities.