Rethinking Financial Reporting

Rethinking Financial Reporting

"Rethinking Financial Reporting" is a fact-based examination of the costs and benefits of the current model of financial reporting and how it can be improved.

In a time of decreasing trust in government, we should ask if lengthy, technical financial reports published many months in arrears are the most effective way to build trust with government’s most important constituency: citizens. In a time of declining resources, we should ask if the finance officer’s time is well spent producing these reports.

New Research

Why GFOA is Rethinking Financial Reporting

This report presents GFOA’s vision for updating financial reporting. It critiques the current approach for not meeting the needs of its audiences, highlighting issues such as complexity and the time required to prepare the reports. The report also discusses the opportunity costs of financial reporting and outlines strategies to make financial reports more user-friendly, streamlined, and better aligned with users' needs.

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New Research

The Speed We Need: Unlocking the Secrets of the Accelerated ACFR

Many local governments struggle to complete their Annual Comprehensive Financial Report (ACFR) on time and without excessive effort. This paper explores how governments can streamline the ACFR process to finish faster and with less strain—helping public finance officers avoid burnout and focus on other priorities.

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"This report reads like a page-turning non-fiction book; one that captures the reader's attention from the beginning and holds it tightly throughout."

Stephen H. Hagerty, Former Mayor of Evanston, IL, and President of Hagerty Consulting

"This report is extremely well written.  It is easy to follow for those who are less close to the topic of conversation than others - well done!"  

Anne Ross ,Principal Consultant/Founder, Muni Credit & Compliance Advisors, LLC 

"The report has a wealth of information and clearly written for ALL to read and understand.  To me, this speaks to the core of why we need to rethink financial reporting: better communication."

Tanya M.​ ​Luther, CPA, Senior Accountant, Central Arizona Project, Central Arizona Water Conservation District, Phoenix AZ

Additional Rethinking Elements

Member Attitudes Toward Financial Reporting

A recent survey shows how people who prepare Annual Financial Reports (AFRs) and those who use them view their value, timeliness, ease of understanding, and impact on decision-making. Preparers are more cautious about their value, while users see them as more useful. The paper also talks about audience priorities, the need for quicker report completion, simpler content, and better public engagement. The findings suggest improvements to make AFRs more effective and user-friendly for everyone. Click here to learn more.

Top Rethinking Financial Reporting Questions Answered

At GFOA's 118th Annual Conference in Orlando, there were many questions during the Rethinking Financial Reporting session. While time allowed us to address only a select few during the session, we’ve since gathered the most popular inquiries and are excited to share those questions & answers with you. Click here to view.

Next Gen Financial Reporting

This report articulates a vision to improve financial reporting for local governments using technologies like generative AI and other high-tech tools. We have made this report available as an MS Word document and invite you to read, provide feedback, and suggest your own ideas. You can also add yourself to the list of contributors to the report. View more information and provide feedback.

GovFi Prize

The GovFi Prize offers funding for answering long-standing public finance questions. Many of these questions pertain to financial reporting. Click here to learn more.

Commitment to GAAP

GFOA is committed to accountability, consistency and comparability that GAAP reporting currently provides to state and local governments.  GFOA also supports financial reporting that is efficient and addresses the information needs of citizens, elected officials and other community stakeholders, and recognizes that current GAAP may not achieve these objectives.

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