Public Administrators’ Understanding of External Financial Reporting: It Begins with Curriculum

Abstract

State and local governments’ external financial reports contain important information for the citizenry and government stakeholders. However, unless information in those reports is readily consumable, public trust may erode. It is important that public administrators understand and effectively communicate results from these reports, skills that are embodied in the universal required competencies established by the Network of Schools of Public Policy, Affairs, and Administration. This article is designed to be a resource for teaching external financial reporting in these programs. We first provide a graphical depiction of the external financial reporting model as prescribed by the Governmental Accounting Standards Board and discuss key elements of it. We then discuss the production and uses of these reports. These discussions should help future public administrators understand the mechanics of reporting and the challenges related to the production and use of these reports. Such understanding should facilitate the communication of these reports.

Keywords:

• Public administration curriculum
• external financial reporting
• state and local governments
• public finance

Additional information

Notes on contributors

Tammy R. Waymire

Tammy R. Waymire is an associate professor of accountancy at Northern Illinois University. She teaches and researches in the governmental and nonprofit accounting area. Her prior work experience includes auditing governmental and nonprofit entities, especially those subject to the Office of Management and Budget (OMB) Circular A-133.

Shannon N. Sohl

Shannon N. Sohl, senior research associate, joined the Center for Governmental Studies at Northern Illinois University in 2006. She is currently co-leading a digital financial reporting initiative and also focuses on fiscal condition assessments, comparability models, and ways to improve transparency and accountability of local governments.

Brandy Howard

Brandy Howard is a recent graduate of the Leadership Master of Accounting Science program at Northern Illinois University, where she also earned a bachelor’s degree with honors. She is currently an assurance associate on the Service and Not-for-Profit team at McGladrey LLP.