An important component of public sector financial reporting is information about service efforts and accomplishments (SEA). Such information provides insight into how effectively and efficiently state and local governments utilize resources to achieve their missions on behalf of their citizens. To bring its conceptual framework up to date on advances made by governments in reporting SEA information, the Governmental Accounting Standards Board (GASB) has proposed changes to Concepts Statement No. 2, Service Efforts and Accomplishments Reporting. The proposed amendments also would clarify the role of the GASB in SEA reporting.
To enhance a common understanding of the elements, characteristics, limitations, and methods of communicating SEA performance information, the GASB proposes to modify four sections of Concepts Statement No. 2 (Purpose and Scope, The Elements of SEA Reporting, Limitations of SEA Information, and Enhancing the Usefulness of SEA Information). The proposed changes to the Purpose and Scope section would clarify that it is beyond the scope of the GASB to establish the goals and objectives of state and local government services, develop specific nonfinancial measures or indicators of service performance, or set standards for service performance. Some provisions of the Developing Reporting Standards for SEA Information section have been interpreted in ways that cause confusion, and therefore the GASB proposes to eliminate that section from the Concepts Statement entirely.
The Exposure Draft is available for comment until July 3, 2008 at http://www.gasb.org/exp/ED_SEA.pdf.
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