GASB: Who We Are, What We Believe and Where We Are Going

GASB: Who We Are, What We Believe and Where We Are Going

By Joel Black and Alan Skelton

We are looking forward to being with you in Phoenix at the ASCPA Governmental Accounting Conference. At the conference, we will brief you on what the Board is working on, what is on the horizon and answer any questions you may have about the GASB. In this article, we wanted to take a step back to share our broader perspective on who we are, what we believe and where we are going as an organization.

Who We Are

As you are aware, the GASB exists to make sure users of state and local governmental financial statements have access to the important information they need to evaluate governments’ financial activity and make decisions about it. GASB provides the fundamental, foundational rules that allow the financial information governments report to be relevant, understandable, timely, consistent and reliable.

Our work helps ensure the marketplace, legislators, analysts, investors, people who live in the communities and other stakeholders have the information they need to assess fiscal accountability. GASB stakeholders can trust the information because it is not presented in any way a government chooses, but in the way an independent third party – the GASB – requires its presentation under generally accepted accounting principles (also known as GAAP), the gold standard in governmental financial reporting.

In order to maintain the public trust the Board has been given, we must continue to establish new governmental accounting standards and update existing guidance. We must also make sure preparers and auditors have the information they need to successfully implement those standards, and we must educate our stakeholders about our standards as well as what information flows from them.

As leaders of the GASB, we have been entrusted with guiding the Board in the direction that maintains the integrity of our standards. First and foremost, that means maintaining the integrity of the standards-setting process and the resulting standards. Part of what makes GAAP generally accepted is that all parties involved – preparers, auditors, and users of financial reports – provide significant input into the process. It is important that we hear from you.

We strive to make sure we are doing the right things, at the right times, for the right reasons – and that we communicate those reasons as well as the results. We are continuously working to improve our engagement with you. By providing that level of transparency, everyone can be clear on what we do and why we do it.

Where We Are Going

Our global society is evolving and changing, and how governments operate is evolving and changing along with it. At the same time, financial reporting, the needs of financial statement users and how they consume and use the information also continues to evolve and change. Our standards must evolve appropriately, and keep pace with shifts in the landscape and changes in the environment.

Beyond setting standards, it is essential for us to play our part in this evolution, so financial statement users receive information that is relevant, understandable, timely, reliable and consistent moving forward.

GASB is nearing its 40th anniversary as a standards setter. During our time, we have operated in a highly consistent way in terms of our people, our processes and the technology we use. Now, we are taking a step back and asking, are there other ways to interact with our people, to enhance our processes and to leverage technology to build on the successes of the past and carry them forward into the future? Some of the changes that have recently occurred include: • When we came back to the office in October 2021, we returned on a flexible and hybrid basis, which includes a remote work component. No one would have foreseen that just two years ago. • We are looking at our processes, for example, in how we conduct our research and at ways to modernize and integrate it into the standards-setting process more broadly. • With respect to technology, we are looking to enhance how we interact with our stakeholders and to find new, easier ways for them to share their feedback and ideas with us.

In essence, the three pillars of people, process and technology are at the core of the journey and the future at the GASB.

Closing Thoughts

Finally, not only are the considerations we just mentioned changing, but the transactions that governments enter into are evolving as well. They become more complex and more interrelated with the private sector and with other governments. The nature of how governments operate and transact business and the types of things they do are changing, so it is important for us, and our accounting standards, to keep pace with them.

In closing, we want you to know that our stakeholders, including ASCPA members, are always our central consideration as we plan, shape and try new ways of doing things. As always, we’d love to know what ideas you may have. If you’re so inclined, please drop us a note to let us know at gasbnews@gasb.org. l

The views expressed in this article are those of the authors only. Official positions of the GASB on accounting matters are determined only after extensive public due process and deliberation.

Joel Martin Black, CPA (licensed in FL) was named chairman of the Governmental Accounting Standards Board, effective July 1, 2020. Joel came to the GASB after almost 16 years as a partner at Mauldin & Jenkins in Atlanta where he was the partner in charge of the firm’s audit practice at the time of his departure. During his experience in public accounting, he exclusively served state and local government clients leading audits and financial statement preparation engagements.

Alan Skelton was named director of research and technical activities of the Governmental Accounting Standards Board, effective April 1, 2021. He leads the staff and serves as the principal advisor to the chair and Board. Prior to joining the GASB, Skelton was the state accounting officer for the state of Georgia, initially appointed by the governor in 2012 and reappointed in 2019.

Black and Skelton present at the Governmental Accounting Conference on February 4, 2022.

Virtual Road to the CPA

The ASCPA successfully hosted its first virtual Road to the CPA event. The event educated college accounting and business students on accounting careers and opportunities in the profession. This event presented information on the CPA exam, the certification process and resources offered by the ASCPA. In addition, a panel of four CPA members shared their experience and answered student questions. Thank you to Ignatius Jackson, Anne Rogers, Scott Gianninoto and Janeen Butler for supporting the future of the CPA profession.

If you are interested in being part of a future Road to the CPA panel, email cquinonez@ascpa.com.