Presentation on theme: "Lisa R. Parker, CPA – Project Manager Governmental Accounting Standards Board 2009 National Conference on Innovations in Government Accountability May."— Presentation transcript:
Lisa R. Parker, CPA – Project Manager Governmental Accounting Standards Board 2009 National Conference on Innovations in Government Accountability May 18, 2009 Reporting Performance Information That Matters SEA REPORTING—
The opinions expressed in this presentation are those of Mrs. Parker. Official positions of the GASB are established only after extensive public due process and deliberation.
Is Your State or Local Government: Effective? Efficient? Providing Good Value? How do you know?
Why Governmental Accounting and Financial Reporting Is—And Should Be—Different “Governments are fundamentally different from for-profit business enterprises in several important ways.”
Key Differences Basic Missions/Purposes Stakeholders Processes for Generating Revenues Budgetary Obligations Longevity and Powers The needs of users of financial reports of governments and business enterprises differ. Public accountability is an essential factor.
Phase 1—Amendments to Concepts Statement No. 2, Service Efforts and Accomplishments Reporting Phase 2—Request for Response, Suggested Guidelines for Voluntary Reporting of SEA Performance Information Due process document—Proposed Suggested Guidelines for Voluntary Reporting of SEA Performance Information 6 Original SEA Project Had Two Phases
Exposure Draft issued on April 4, 2008 Comment deadline was July 3, 2008 Public Hearing—July 29, 2008—9:00AM Association of Government Accountants’ Professional Development Conference Atlanta, Georgia Final Concepts Statement No. 5, Service Efforts and Accomplishments Reporting issued in November Phase 1—Concepts Statement 2— Amendments
AMENDMENTS INCLUDED—Elimination of one section and the modification of four sections Section on Developing Reporting Standards for SEA Information—deleted Sections on Limitations of SEA Performance Information and Usefulness of SEA Performance Information—clarifying revisions only 8 Amendments—Concepts Statement 2
Section on Purpose and Scope— clarification that it is beyond the scope of the GASB to establish (1) the goals and objectives of state and local governmental services, (2) specific nonfinancial measures or indicators of service performance, or (3) standards of, or benchmarks for, service performance.
Section on Elements of SEA Performance Measures—proposes to separate the elements of SEA performance measurement from related factors as follows: Measures of service efforts (costs), Measures of service accomplishments (outputs/outcomes), Measures that relate service efforts to service accomplishments (efficiency), Discussion of other factors (related information)— expanded to include comparisons, unintended effects, narrative information, and the concept of demand for services. Focus shifted to factors that influenced results. 10 Amendments—Concepts Statement 2
Concepts Statement 5 – only those paragraphs from Concepts Statement 2 that were amended GASB separately issued – Concepts Statement No. 2, Service Efforts and Accomplishments Reporting, as amended by Concepts Statements No. 3 and 5
Request for Response, Suggested Guidelines for Voluntary Reporting of SEA Performance Information was issued on July 31, 2008 Comment deadline was October 31, 2008 User Forum was held in NYC on November 7, 2008 Public Hearing was held on November 14, 2008 in Orlando, Florida in conjunction with the National League of Cities’ 2008 Congress of Cities and Exposition
December of 2008—Board deliberates written and oral comments received on Request for Response and agrees to proceed with a due process document ◦ Board tentatively agrees to add the following to the next due process document: A discussion of effective communication A further emphasis on citizen involvement ◦ Board tentatively agrees to keep the examples varied as they were presented in the Request for Response, while making suggested changes to improve them
January of 2009—Board tentatively agrees on the title of the due process document: Proposed Suggested Guidelines for Voluntary Reporting SEA Performance Information With the title of the final document to strike Proposed Format and structure of the document to be very different from any other previously issued GASB guidance—no Codification Instructions
March and April of 2009—Board continued to deliberate the comments received on the substance of the Request for Response ◦ Tentatively agreed on retaining the four essential components and the six qualitative characteristics June 2009—Board to finalize due process document Due process begins!!! We want your feedback!!
What the project is: ◦ Focus on voluntary reporting ◦ Focus on suggested guidelines ◦ Focus on clarifying GASB’s role What the project is not: ◦ Establishing performance measures ◦ Establishing performance benchmarks ◦ Establishing reporting standards ◦ Requiring SEA reporting
Sole Focus Of GASB Efforts GOVERNMENT PERFORMANCE MANAGEMENT SYSTEM 17
Purpose and scope Statement of major goals and objectives Involvement in establishing goals and objectives Multiple levels of reporting Analysis of results and challenges Focus on key measures Reliable information Relevant measures of results Resources used and efficiency Citizen and customer perceptions Comparisons for assessing performance Factors affecting results Aggregation and disaggregation of information Consistency Easy to find, access, and understand Regular and timely reporting
Suggested Guidelines for Voluntary Reporting of SEA Performance Information composed of two parts: Four essential components of an effective SEA report Six qualitative characteristics that are appropriate for reporting SEA performance information Suggested guidelines, although voluntary, will assist governments in improving the quality of their reported SEA performance information Traditional financial statements provide information about fiscal and operational accountability but not the degree to which the government was successful in helping to maintain or improve the well-being of its citizens by providing services 19 Suggested Guidelines
Provide guidance to assist preparers of SEA reports in effectively communicating SEA performance information to users Purpose and Scope Major Goals and Objectives Key Measures of SEA Performance Discussion and Analysis of Results and Challenges 20
ESSENTIAL COMPONENTS AND USER NEEDS 21
ELEMENTS OF SEA PERFORMANCE MEASURES 22
Provide further guidance in the application of the essential components—assist users in comprehending and assessing government programs and services Relevance Understandability Comparability Timeliness Consistency Reliability 23
QUALITATIVE CHARACTERISTICS AND USER NEEDS 24
Lisa R. Parker, CPA Project Manager Governmental Accounting Standards Board 401 Merritt 7, Norwalk, CT Telephone—(203) Web Sites—www.gasb.org and