Summary of Reporting Requirements

4 Reporting

4.1 Reporting Principles and Requirements

4.1.4 Summary of Reporting Requirements

The following matrixes summarize the GAAP and SAO reporting requirements. Governments should use proprietary fund accounting and reporting if the predominant revenue source comes from fees and charges for selling goods or performing services. If taxes or grants are the predominant source of revenue, governmental fund accounting and reporting should be used. Governments have an option to participate in the GFOA’s Certificate of Achievement for Excellence in Financial Reporting program. To participate in this program, a government must prepare an Annual Comprehensive Financial Report (ACFR). These reports have to provide additional information, which is not required in preparation of basic GAAP financial statements. For additional information on preparation of an ACFR, see BARS Manual 4.9, GFOA Financial Reporting Recognition Programs.

[1] Local governments with total revenues of $2 million or less are not required to prepare basic financial statements unless debt covenants, a contract, a grantor or the city/county/district’s legislative body requires the city/county/district to prepare the financial statements or to receive a financial statements audit. If this request is made, basic financial statements and notes should be prepared. The $2 million threshold calculation excludes any proceeds from issuance of long-term debt and resources held by the government in its fiduciary capacity. Local governments which choose not to prepare financial statements must have their budgeted information available for the audit.

[2] For component unit reporting requirements, see BARS Manual 4.1.2, BARS Reporting Requirements.

[3] Some governmental activities may be accounted for in enterprise funds (for example, some public transit operations), and some business-type activities may be accounted for in governmental funds.

[4] Part of internal service fund(s) net income or loss, if significant, should be allocated to business-type activities that purchased the good or services.

[1] The statement should not include: general capital assets and general long-term liabilities.

After preparing the reports, the government will need to keep all worksheets on file and available for the auditor.

If you are preparing an Annual Comprehensive Financial Report, there are additional statements, schedules, and statistical data that must be included in the report. This matrix does not list these additional requirements. For more information, see BARS Manual 4.9, GFOA Financial Reporting Recognition Programs.

If your government assumes risk or self-insures, OR provides claims servicing or insurance coverage to others, please see BARS Manual 3.4.9, Risk Management Principles for additional reporting requirements.