GASB Requests Response on Proposed Guidelines for Reporting of Performance Information
by Chris Hoene
The Governmental Accounting Standards Board (GASB) has issued a Request for Response on Suggested Guidelines for Voluntary Reporting of Service Efforts and Accomplishments (SEA) Performance Information. GASB will conduct a hearing on the Request for Response at NLC’s Congress of Cities and Exposition in Orlando, Fla.
The purpose of the Request for Response and the hearing is to obtain feedback from constituents at an early stage in GASB’s project to develop guidelines to assist state and local governments that voluntarily choose to report on their service efforts and accomplishments (SEA). The document can be downloaded free from www.gasb.org/exp.
GASB’s development of guidelines for voluntary reporting of performance information has been a source of contention for state and local governments. NLC, in conjunction with the Government Finance Officers Association (GFOA), National Association of Counties (NACo), International City/County Management Association (ICMA), U.S. Conference of Mayors (USCM), National Governors Association (NGA), National Conference of State Legislatures (NCSL) and the Council of State Governments (CSG) have strongly opposed GASB’s development of guidelines for reporting on performance information.
The eight associations sent a letter to GASB in February stating that while state and local governments support the development and use of performance measures, the establishment of such measures is inherently a policy decision that must remain the exclusive purview of government officials. The letter concludes that “Setting of standards in government performance would encroach on government policymaking and undermine the authority of elected officials.”
The letter from the eight associations also states that even though GASB’s proposed guidelines are for voluntary reporting, and therefore not required, that the GASB’s status as an authoritative standards-setting body makes any official action by GASB quasi-authoritative. Voluntary guidelines will likely quickly move from being viewed by state and local government officials as a voluntary or recommended practice to an effective requirement.
GASB acknowledges that while it is beyond the scope of the GASB to establish the goals and objectives of state and local government services, to develop specific nonfinancial measures or indicators of service performance, or to set benchmarks for service performance, research has shown that many constituents consider it appropriate for GASB to issue suggested guidelines for voluntary reporting of performance information.
Constituents are invited to provide feedback on the suggested guidelines, which include what GASB has identified as the four essential components of an effective SEA report and the six qualitative characteristics of SEA performance information.
The four components identified are: purpose and scope, major goals and objectives, key measures of SEA performance, and discussion and analysis of results and challenges. The six qualitative characteristics, as set forth in Concepts Statement No. 2, Service Efforts and Accomplishments Reporting, are relevance, understandability, comparability, timeliness, consistency and reliability.
Constituents are encouraged to review the proposed guidelines and provide feedback to GASB.
GASB is providing several methods of offering input: • Written comments can be submitted until October 31 through the mail or through filling out the Internet-based form at www.gasb.org/survey/cgi-bin/searptguide.html.
• Alternatively, written comments can be e-mailed to director@gasb.org or mailed to the Director of Research and Technical Activities, Project No. 20-2, Governmental Accounting Standards Board, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116.
• A public hearing will be held in conjunction with NLC’s annual Congress of Cities and Exposition in Orlando on November 14, beginning at 8 a.m. Individuals and organizations can participate in person or by telephone. The deadline for notifying GASB of an intention to participate is October 31.
• A user forum will be held on November 7, beginning at 2 p.m., in New York. Participation in this forum is open to users of SEA performance information such as elected officials, legislative staff, citizen or citizen organizations, taxpayer associations, media representatives, and municipal analysts. Participation in the forum can either be in person or by telephone. The deadline for notifying GASB of an intention to participate is October 31.
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