Major changes to CAFR statistical section: GASB statement no. 44 will significantly modify the statistical section of the comprehensive financial report, with the aim of providing a broader focus, improving comparability, and encompassing accrual-based data.

• Author: Gauthier, Stephen J.
• Position: The Accounting Angle

This past May, the Governmental Accounting Standards Board issued Statement No. 44, Economic Condition Reporting: The Statistical Section (an amendment of NCGA Statement 1). The new standard will significantly modify the statistical section of the comprehensive annual financial report. The new guidance is scheduled to take effect for fiscal periods beginning after June 15, 2005.

BACKGROUND

The GASB was persuaded that changes to the statistical section were needed for three reasons.

To provide a broader focus. Previous authoritative guidance on the statistical section focused exclusively on general-purpose local governments supported principally by property taxes. GASB Statement No. 44 offers its guidance in terms of five generic objectives designed to be generally applicable.

To improve comparability. Previous authoritative guidance offered no detailed description of the contents or format of required statistical presentations. As a result, considerable diversity developed in practice, hindering comparability and potentially confusing readers. GASB Statement No. 44 offers extensive descriptive and illustrative material designed to minimize future diversity.

To encompass newly available data.

The new governmental financial reporting model offers a wealth of information not previously available in state and local government financial reports. GASB Statement No. 44 takes full advantage of that fact to incorporate for the first time certain accrual-based data extracted from the new government-wide financial statements.

OBJECTIVES, ORGANIZATION, AND CONTENT

The revised statistical section will provide five categories of information: (1) financial trend information, (2) revenue capacity information, (3) debt capacity information, (4) demographic and economic information, and (5) operating information. GASB Statement No. 44 directs that the contents of the statistical section be organized on the basis of these five objectives.

1. Financial trend information. The first portion of the statistical section will feature four schedules of trend data extracted from the basic government-wide and governmental fund financial statements:

   * Information about net assets (10 years). This schedule is to present data on each of the three categories of net assets in the government-wide statement of net assets.

   * Information about changes in net assets (10 years). This schedule is to present all of the key elements of the government-wide statement of activities.

   *...