Governmental external financial reporting serves two purposes. First, these reports outline accountability for public tax dollars and the services that are funded by these resources. Second, external reporting also provides governments with the opportunity to communicate with their constituents, highlighting the results of operations, the government's financial position, and most importantly, providing a vital framework for future decisions about programs and services. This program outlines the basic governmental reporting guidelines and offers suggestions for adding value to the external communications about the government's financial position.

Portions of GASB Statement No. 14, The Financial Reporting Entity, copyrighted by the Financial Accounting Standards Board, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, are reprinted with permission. Complete copies of that document are available from the FASB.

Chapter 1 gives an overview of the governmental reporting framework.

Chapter 2 reviews the government-wide statements.

Chapter 3 examines the fund statements.

Chapter 4 discusses the notes to the financial statements.

Chapter 5 explains the importance and usefulness of the required supplemental infrastructure.

Chapter 6 reviews other governmental reporting issues.

• Know the state and local governmental reporting framework

• Know the importance of accountability for public resources in the reporting process

• Know how GASB standards define the governmental reporting entity

• Know the difference between a comprehensive annual financial report (CAFR) and the basic financial statements

• Be able to prepare the statement of net assets and the statement of activities

• Be able to determine how component unit information should be displayed in the government-wide financial statements

• Be able to explain the definition for enterprise funds and determine which of the government's operations should be reported as enterprise funds

• Be able to highlight key reporting requirements for fiduciary funds

• Be able to identify the requirements for note disclosures in the GASB Codification

• Be able to prepare relevant note disclosures and organize the disclosures for the annual report

• Be able to discuss the use of narratives that clarify the numbers in the financial statements

• Be able to outline the communication tools in Management's Discussion and Analysis

• Be able to prepare the budgetary comparisons and decide whether these reports should be included as part of the basic financial statements or in the required supplementary information

• Know the pension or OPEB schedules that will be required for your government's report

• Be able to explain the RSI requirements related to the modified approach for reporting infrastructure capital assets

• Be able to build the required tables for economic condition reporting and outline the objectives for this section of a Comprehensive Annual Financial Report (CAFR)

• Be able to determine what other supporting schedules should be included in your government's CAFR to enhance the details that your users will want to review

• Be able to prepare the transmittal letter in accordance with the provisions of the GFOA Certificate of Excellence in Reporting program and enhance your government's CAFR

• Be able to research current issues in popular reporting to find current reporting practices from other governments using this communication tool to improve users' access to financial information

Lucinda V. Upton, CPA (KY), CGFM, is a Program Analyst for Kentucky's Legislative Research Commission. In her 21-year career in state government auditing and accounting, she has held the positions of Assistant Director of Audits in Kentucky's Office of the Inspector General, Financial Manager in Kentucky's Medicaid Program, and others. In addition to her auditing and financial management responsibilities, she has provided training and technical assistance to state audit staff, local government officials, and CPAs who audit governmental entities. Ms. Upton has developed training in governmental auditing and accounting. She is the Education Coordinator for the Southeastern Region of the Association of Government Accountants (AGA) and is a past President of the Central Kentucky Chapter. She has authored courses for Bisk Education, Inc., Sheshunoff Publishing, AICPA Continuing Education Division, and the AGA. She has also been a discussion leader for national conferences and training sessions. (Author)

Frank Crawford, CPA, is President of Crawford & Associates, PC. He received a BS in accounting from East Central University in Ada, Oklahoma and began his professional career with the international accounting firm KPMG Peat Marwick before joining his brother, in a firm dedicated solely to providing auditing, consulting and accounting services to governmental entities. Their firm has performed over 750 financial statement audits and financial-related audits of governments, along with a variety of other services including: GASB Statement No. 34 implementation plans; fraud investigations; internal control analysis; accounting policy and procedure development; quality assurance reviews and training. Mr. Crawford serves on a number of committees with the AICPA. (Speaker)

John L. Norman, Jr., JD, is an attorney in private practice in Washington, D.C., where he specializes in closely held business organizations, as well as estate and financial planning. He is the former National Director of Taxation for the accounting firm Pannell Kerr Forster, and the former chair of PKF's International Tax Committee. He is also a member of the International Tax Planning Association. Mr. Norman is a noted speaker and author of several publications in the area of federal taxation and he is a regular contributor to CPE Network. (Speaker)