Financial Transparency and Public Financial Reporting 2017 Regional Professional Development Training Financial Transparency and Public Financial Reporting General title 1:45 PM to 4:15 PM Reminders: Cell phones Rest rooms Sign in for CPE credit Bentley University Waltham, Mass. March 9, 2017

Welcome and Introduction Craig C. Hall, MPA Director of Accountability, AGA-Boston Chapter and Associate Faculty, University of Phoenix School of Business General title Douglas R. Snow, Ph.D. Professor of Public Service Suffolk University Institute for Public Service

Agenda Good Stewardship The Concept of Transparency Strategy and the Public Interest Break Performance and Accountability AGA Programs for Transforming Government Questions General title

Good Stewardship Americans Really Don't Like Their Government Right Now, Government Executive, January 22, 2014 State Governments Viewed Favorably as Federal Rating Hits New Low, Pew Research Center for the People and the Press, April 15, 2013 Local Government’s Success in Maintaining Public Trust, Public Management Magazine, International City/County Management Association, March 2012 • Volume 94 • Number 2 Maintaining the Public Trust While Making Tough Choices, Management Insights, Governing Magazine, January 5, 2011 Trust in Local Governments, Wendy M. Rahn and Thomas J. Rudolph, Chapter 13, 2002 General chart A 2015 Gallup poll found that 65 percent of Americans are ‘very or somewhat dissatisfied’ with their ‘system of government and its effectiveness.’ This was the highest percentage in over a decade. –Taken from the “Americans Really Don’t Like Their Government Right Now” article. 70% view “budget problems” - state government in 2011, 80% “budget problems”

The Concept of Transparency: Theory and Practical Application Provide access to transactional information and provide the user aggregate data to filter and query. Provide customized reporting with context and background to explain what data means. General title The premise: is data transparency or is information what the taxpayers want? Two Schools of Thought Informed Massachusetts: Spending: State Budget, Open Checkbook and Tax Incentives and Expenditures Revenues: DOR Bluebook Mass Results: Performance Reports and Strategic Plans * Good data on spending, DOR collections and what agencies are doing, however, is this what the taxpayer wants? Will the taxpayer decipher use this data to decipher and discover how well agencies are spending tax dollars? CCR and Popular Reporting Trend Pew Report- State Budget Crisis Task Force, January 14, 2014 - recommends several specific approaches for financial planning and reporting. “Easily Understandable Financial Reports. Standard-setting bodies should work with associations of states to develop rules for the creation of concise, timely and readable financial reports. The typically convoluted, sprawling nature of state financial statements make them of limited use for public understanding. Both budgetary and asset-based information for all special funds should be easily accessible and be used in disclosure statements for borrowing.” Results of AGA/Harris Interactive Survey in 2010: “A deep dissatisfaction among the American public with both the availability of government financial information and the way it is delivered to the people.” The three legged tool or holy grail to regain the public trust. How many people in here know what a CAFR is? (Comprehensive Annual Financial Report ) How many people think the residents (taxpayers) read the CAFR or your annual audit or your management letters?

Performance and Accountability General chart

“As advocates for the government financial management profession, AGA strives to increase government accountability and improve performance at all levels of government. Our members believe in government that is transparent and accountable to its citizens and in constantly seeking new ways to boost performance to meet mission-oriented and financial goals.” Source: AGA General paragraph

Certificate of Excellence in Accountability Reporting (CEAR) Program Established in conjunction with the Chief Financial Officers Council and the U.S. Office of Management in Budget. General paragraph AGA training demonstrates the best ways to complete Performance and Accountability Reports and Agency Financial Reports before they are submitted to OMB and Congress, then our subject-matter experts review them to provide recommendations and feedback before certificates of excellence may be awarded. By producing reports that are accurate and easy to read, governments can enhance both performance and accountability.

Citizen-Centric Reporting (CCR) Program Encourage governments to create clear, concise reports for constituents so they understand how their tax dollars are spent. Cities, counties, states, academic institutions and federal departments and agencies nationwide have joined in the program to advocate on behalf of transparency and accountability. General paragraph AGA training demonstrates the best ways to complete.

Financial Management Standards Board (FMSB) Input from members and provides thorough feedback to decision-makers at bodies including the Government Accounting Standards Board to present members' input on new regulations as a united, industry-wide opinion. General paragraph

Thought Leader in Advancing Government Accountability Association of Government Accountants www.agacgfm.org AGA Boston Chapter http://www.agaboston.org/ General paragraph

Questions General chart

Contact Information: Craig C. Hall, MPA craighallfac@email.phoenix.edu Douglas R. Snow, Ph.D. dsnow@suffolk.edu General chart