GFOA recommended practices help finance officers do the right thing.

• Author: Spain, Catherine L.
• Position: Government Finance Officers Association's book ' Recommended Practices for State and Local Governments Approved by the Government Finance Officers Association'

In March 1997, GFOA published Recommended Practices for State and Local Governments Approved by the Government Finance Officers Association and, for the first time since its initial publication in 1993, mailed it to all GFOA members. In previous years, the compilation was made available on a request basis, but the GFOA Executive Board felt strongly that the recommended practices developed by the standing committees were so important that all members of the association should be made aware of their existence and encouraged to review and implement them.

Four years ago, the five committees were directed by the board to develop recommended practices in the functional areas of public finance to give GFOA members and other state and local government officials more guidance on sound financial management practices. This effort represented a fundamental new direction for GFOA - one that is still evolving. Each committee designed a process for identifying practices that needed to be developed, and the practices are reviewed and modified periodically to add new topics and change the priorities assigned to various subjects. This review process ensures that the committees not only address fundamental practice areas but also respond to emerging issues and provide direction to those finance professionals grappling with some of the most perplexing, and sometimes controversial, issues of the day.

Recommended practices are researched by GFOA staff, who consult with experts from the public and private sectors to develop the language describing the recommended practice. Each practice is reviewed by the appropriate committee and modified as necessary. At times, it is necessary to involve more than one committee, depending on the issue being addressed, and staff sometimes are directed to conduct further research before a recommended practice is finalized and approved by a committee. At this point, the practice is made available to GFOA members, other public officials, other interested parties, and the news media, providing an opportunity for outside review and input. The final step is for the Executive Board to approve each practice, making them official GFOA positions.

By developing recommended practices in accounting, auditing, financial reporting, budgeting, cash management, debt management, and pension and benefits administration, GFOA is fulfilling one of its basic purposes as an organization. It is the role of GFOA to "enhance and promote the professional...