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| Educating and empowering citizens with understandable, reliable, and transparent government financial information.
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Implementation of Financial Data Transparency Act Sheds Light on Opportunities in Colorado Special Districts
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A significant report has been published by Truth in Accounting and XBRL.US, providing insights into the obstacles and advantages associated with implementing the Financial Data Transparency Act (FDTA) in particular districts of Colorado. The FDTA, a bipartisan bill, was officially enacted into law on December 23, 2022.
The FDTA aims to modernize the collection and dissemination of financial data by federal financial regulators, making it more accessible, standardized, and valuable for both investors and consumers. The paper highlights several challenges that local governments, particularly special districts, may face when adopting taxonomy and how to overcome those challenges.
The adoption of machine-readable financial statements in government operations holds the potential to streamline processes, bolster transparency, and enhance efficiency. However, the study underscores the need for concerted efforts to overcome both technical and human barriers to ensure successful implementation.
Key findings of the report include:
Technical Challenges in Implementation: The paper outlines technical challenges related to the cost, time, and effort required to transform traditional PDF financial statements into machine-readable inline XBRL instance documents. XBRL (the Extensible Business Reporting Language) is an open, globally adopted, nonproprietary data standard used by most public companies in the United States.
Human Barriers to Adoption: Three primary human obstacles hindering the widespread adoption of machine-readable financial statements in government operations include reluctance due to a lack of trust in government institutions, skepticism about the necessity of machine-readable statements, and insufficient communication among participants.
Importance of Leadership: The report emphasizes the crucial role of government leaders, including organizations such as the Governmental Accounting Standards Board (GASB), the Government Finance Officers Association (GFOA), the National Association of State Auditors, Comptrollers, and Treasurers (NASACT), and the Association of Government Accountants (AGA), in guiding the successful implementation of the FDTA.
Recommendations for Overcoming Challenges: The report addresses the identified challenges, including building trust through open communication, demonstrating the necessity of machine-readable statements, and fostering stakeholder collaboration.
Read the full report here.
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We are getting ready to unveil our annual comprehensive Financial State of the Cities report in mid-February, providing a transparent and insightful analysis of the fiscal health of the nation's 75 largest cities.
Did Denver improve over last year's "C" grade? You'll know soon!
Next week, we will have an early release of our findings for New York City, San Francisco, Dallas, Chicago, and Los Angeles.
Stay tuned!
Gear up and see what last year's report revealed here.
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Upcoming WebinarNoon CT, Feb. 15, 2024
The Financial State of the Cities: A Conversation with Mark Funkhouser
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"You can't help people if you can't manage the money." - Mark Funkhouser
Set against the backdrop of the Financial State of the Cities report, this educational conversation aims to dive into the fiscal condition of the 75 largest cities nationwide.
Our distinguished guest, Mark Funkhouser, has a Ph.D. in Public Administration and Urban Sociology from the University of Missouri-Kansas City and is an expert in performance auditing, municipal finance, process improvement, and analytical skills. He serves as President of Funkhouser & Associates, a consulting firm specializing in government operations and public finance. He has many years of experience helping public officials and their private sector partners create better, more fiscally sustainable communities. You can find his insights and opinions on effective governance through a regular column in Governing.com and Governing Magazine, and now through Forbes, Route Fifty, and his monthly newsletter. He is passionate about promoting honest, competent, and trustworthy government and has received multiple honors and awards for his contributions to the field. We are privileged to discuss with him the findings in our report, which center around the effect of COVID-19 relief money, the increase of tax revenue after the lockdown, and how stock market volatility impacts all of our cities.
We look forward to hearing his suggestions regarding the measures struggling cities can adopt to regain fiscal health. And how can already robust cities enhance their resilience further?
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| Meet a Truth in Accounting Intern
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Eric Piatek
Eric is an undergraduate studying Data Science at DePaul University in Chicago. He's very interested in quantitative work and applications in healthcare. Eric loves to play and watch soccer with friends in his free time, is involved in leagues throughout Chicago, and enjoys spending time with family.
Your support gives us a robust internship program, blessing the next generation of leaders with truthful government information they would not otherwise receive.
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| Something's Weird with the GASB Interviews
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Local Government Units in States
For 2022 the U.S. Census Bureau reported the number of local governments in all the states. As to be expected the smallest states had the fewest local governments. However, the states with the most local government units were not necessarily the largest. Illinois led the pack with 6930 units which was almost 1400 more than Texas (5533) which has nearly three times Illinois's population, and was over three times the average number of local government units (1781) for the entire country.
The U.S. Census Bureau conducts the Census of Governments every five years, categorizing each government in the country. Local governments generally include counties (boroughs in Alaska and parishes in Louisiana) and municipalities or cities/towns. The number of local governments varies significantly in different states; some contain numerous jurisdictional boundaries and overlapping special districts.
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