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NCJRS Abstract

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NCJ Number: 68241 Find in a Library
Title: FINANCIAL DISCLOSURE PRACTICES OF THE AMERICAN CITIES - A PUBLIC REPORT
Author(s): R M COCKRILL; M MEYERSON; J L SAVAGE; E C KELLER; M W MAHER
Corporate Author: Coopers and Lybrand
United States of America

University of Michigan
Graduate School of Business Admin
United States of America
Date Published: 1976
Page Count: 44
Sponsoring Agency: Coopers and Lybrand
New York, NY 10020
University of Michigan
Ann Arbor, MI 48104
Sale Source: Coopers and Lybrand
1251 Avenue of the Americas
New York, NY 10020
United States of America
Language: English
Country: United States of America
Annotation: FINDINGS ARE REPORTED FROM A SURVEY OF THE FINANCIAL OPERATIONS AND REPORTING PRACTICES OF 46 AMERICAN CITIES, AND RECOMMENDATIONS FOR IMPROVEMENTS IN MUNICIPAL DISCLOSURE PRACTICES ARE OFFERED.
Abstract: FINDINGS SHOW THAT AMONG THE CITIES SURVEYED THERE IS A SUBSTANTIAL LACK OF COMPLIANCE WITH CURRENT GENERALLY ACCEPTED PRINCIPLES APPLICABLE TO GOVERNMENTAL BODIES. ABOUT 76 PERCENT OF THE CITIES DO NOT DISCLOSE IN THEIR FINANCIAL REPORTS THE ACTUALLY COMPUTED VALUE OF VESTED BENEFITS OVER THE TOTAL OF THE PENSION FUND AND NET BALANCE SHEET ACCRUALS. VERY FEW CITIES DISCLOSE THEIR ACCRUED VACATION AND SICK LEAVE DOLLAR OBLIGATIONS, AND HALF OF THE CITIES WITH OVERLAPPING DEBT DO NOT DISCLOSE THOSE OBLIGATIONS IN THEIR ANNUAL REPORTS. IMPROPER DISCLOSURE OF CERTAIN GENERAL OBLIGATION BONDS FINANCING SPECIAL ASSESSMENTS AND ENTERPRISE INPROVEMENTS MAKES IT DIFFICULT FOR THE READER OF FINANCIAL STATEMENTS TO DETERMINE THE NATURE OF A CITY'S FINANCIAL OBLIGATIONS. FURTHER, NEARLY HALF OF THE CITIES DO NOT DESCRIBE SUCH FUNDAMENTAL ACCOUNTING POLICIES AS THE METHODS USED TO RECORD FINANCIAL ACTIVITIES. ALTHOUGH MOST CITIES MAINTAIN A NUMBER OF THE FUND TYPES IN COMPLIANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, SUBSTANTIAL NONCOMPLIANCE WAS FOUND. BASED ON THESE FINDINGS, THE UNIFORM ENFORCEMENT OF DISCLOSURE COMPLIANCE FOR THE PROTECTION OF TAXPAYERS AND SECURITY INVESTORS IS RECOMMENDED. ALTHOUGH THE MUNICIPAL FINANCE OFFICERS ASSOCIATION OF THE UNITED STATES AND CANADA CURRENTLY RECOMMENDS COMPLIANCE WITH 'GOVERNMENTAL ACCOUNTING, AUDITING AND FINANCIAL REPORTING,' THE ORGANIZATION ISSUES FEWER THAN 40 CERTIFICATES OF CONFORMANCE EACH YEAR. ACCORDINGLY, LEGISLATION IS RECOMMENDED TO CREATE A MECHANISM TO MONITOR THE FINANCIAL REPORTS OF LOCAL GOVERNMENTS.
Index Term(s): Accounting methods; Financial management; Legislation; Local government; Surveys
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=68241

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