GASB 101 Webinar (07.22.25)-GASB 101 Webinar - 072225

Video Transcription

Video Summary

The presenters introduce GASB 101, a new accounting standard effective for the 2024–25 school year that replaces prior rules for reporting compensated absences (leave). GASB 101 applies a uniform set of criteria to all leave types and introduces a “more likely than not” (50%+) threshold: if leave is at least 50% likely to be taken as paid time off or paid out, it must be reported as a liability. Leave must be earned (services already rendered), must accumulate/roll over, and must meet the likelihood threshold. Items excluded include “use-it-or-lose-it” leave, unlimited leave, most jury/bereavement/FMLA (unless commenced), and future holiday pay.<br /><br />The liability calculation must also include certain salary-related payments directly tied to payouts (e.g., payroll taxes/FICA, employer HSA/FSA), measured at rates in effect at year-end; employer pension contributions are excluded.<br /><br />OSPI provides a “safe harbor” Excel tool (reviewed by SAO) focused on unused sick leave. Districts must perform a historical analysis of leave usage (initially 3 years to restate beginning balance, then 4 years, and at least 5 years going forward) to estimate amounts due within one year versus long-term. The tool helps populate the schedule of long-term liabilities, requiring recalculation of beginning balances and documentation for auditors. Q&A addresses front-loaded leave, substitutes, vacation treatment, caps on cash-outs, and possible alternative methodologies.

Keywords

GASB 101

compensated absences

school district accounting 2024-25

more likely than not 50% threshold

leave liability calculation

OSPI safe harbor Excel tool

historical leave usage analysis