Chicago – For municipal governments seeking to adopt Generally Accepted Accounting Principles (GAAP), the Government Finance Officers Association (GFOA) has developed a new program to assist with financial reporting. According to the GFOA, adopting GAAP will help improve the quality and consistency of a government’s bookkeeping.
Called the Certificate of Conformance, the program was developed earlier this year and will reward the accuracy and effectiveness of financial reports that conform to GAAP regulations.
The program was designed for any government entity that reports total primary revenue of $25 million or less, either in the current year or the average of the last five, on a modified cash basis consistent with the provisions of the American Institute of Certified Public Accountants.
To be eligible, participants must have prepared financial statements using an accounting basis other than GAAP in the last five years, and comply with the guidelines expressed in either the GFOA’s general purpose government, school district or stand-alone business checklists.
To assist governments in preparing GAAP consistent reports, the GFOA has provided guidelines to help standardize their content, and made available the training materials necessary to help accountants comply with GAAP guidelines.
For more information visit the Certificate of Conformance Program’s website.