Understanding GASB 103: A Conversation with Mindy Piatz on MD&A Changes 

Government financial reporting continues to evolve, and GASB Statement No. 103 introduces meaningful changes to how Management’s Discussion and Analysis (MD&A) is prepared. To help break down what this means in practice, we spoke with Mindy Piatz, Principal at Brady Martz, about what governments should expect and how they can prepare. 

 Q: What is GASB 103, and why does it matter? 

Mindy: GASB 103 is really about improving how governments communicate their financial story. Over time, MD&A sections have become longer and more technical, which can make them harder for users to navigate. This standard refocuses MD&A on being clear, concise, and useful for stakeholders. It encourages governments to highlight the most important financial information rather than repeating what is already in the financial statements.

 Q: How will MD&A look different under the new standard? 

Mindy: One of the biggest changes is the structure. GASB 103 outlines specific sections that should be included, such as an overview of the financial statements, financial highlights, analysis of balances and results, and currently known facts or conditions. This creates more consistency across governments and makes the MD&A easier to follow. 

For many organizations, this will mean reorganizing their current MD&A and taking a fresh look at what information truly belongs in each section.

Q: What is the biggest mindset shift for preparers? 

Mindy: The shift from explaining “what” happened to explaining “why” it happened is significant. Instead of just pointing out that revenues increased or expenses decreased, governments are expected to provide context. That could include economic trends, changes in funding, or specific events that influenced the results. 

This kind of analysis gives readers a much better understanding of the factors driving financial performance.  

Q: How should governments approach implementation? 

Mindy: The first step is to evaluate your current MD&A against the new requirements. Look for areas where content can be streamlined and where more meaningful analysis is needed. It is also important to think about your internal processes. Are you capturing the right information throughout the year to support these enhanced explanations? 

Collaboration across departments can make a big difference here. Finance, budgeting, and operational teams all play a role in telling the full financial story. 

Q: Are there any challenges governments should be aware of? 

Mindy: Change management is a big one. Because MD&A is one of the most widely read sections of a financial report, stakeholders may notice differences right away. Providing some context around why the format and content have changed can help set expectations. 

There may also be additional scrutiny during the first year of implementation as auditors review how the updated MD&A aligns with the new guidance. 

Q: What about forward-looking information? 

Mindy: GASB 103 clarifies that forward-looking discussion should be limited to what is known and measurable at the time of reporting. Governments should avoid speculation and focus on facts or conditions that are expected to have a significant impact. 

It is about striking the right balance. You want to provide useful insight without going beyond what can reasonably be supported.  

Q: What is the timeline for adoption? 

Mindy: GASB 103 is effective for fiscal years beginning after June 15, 2025, and early adoption is encouraged. While the first year may require additional effort, getting started early can help ease the transition and avoid last-minute challenges.  

Q: What opportunity does this create for governments? 

Mindy: This is a great opportunity to rethink MD&A as more than a compliance requirement. When done well, it becomes a powerful communication tool. A clear and well-structured MD&A helps stakeholders understand not just the numbers, but the story behind them. 

Taking a thoughtful approach now can position governments to meet new requirements while also strengthening transparency and building trust.