What does your financial report say about your organization?
One of the most important tools a city has to demonstrate its financial and organizational prowess is its financial report. With several of our CPAs involved in judging certificate programs for the Government Finance Officers’ Association (GFOA), we understand all the components of outstanding financial reports. Following are some simple ways to improve your reporting:
- Accurately report public purpose expenditures
A public purpose is one that benefits the community as a whole and is directly related to functions of a government. Some expenses commonly included in this budget category that shouldn’t be are:
- Staff or council retirement or holiday parties
- Flowers for the service desk
- Coffee, unless it is offered at a public meeting
- Refillable water cooler, unless it is in an area accessible to the public
- Provide a popular report, in addition to the Comprehensive Annual Financial Report (CAFR)
While the CAFR is required by law, it’s so detailed that it can be confusing to most citizens. A popular report conveys consolidated financial information in easy-to-understand charts and graphs, and simple language instead of technical jargon.
If you have questions about your reporting or are coming up on the five-year rotation cycle for your auditing partner, contact one of our government experts.
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