National Association of State Auditors Comptrollers and Treasurers

The release of voluntary interim financial information by governments is an idea that has been discussed for years. The concept seems simple enough, but in practice governments have found it difficult to implement. In the summer of 2013, the National Association of State Auditors, Comptrollers and Treasurers—known as NASACT—released a series of 10 best practices aimed at helping states realize this vision of voluntary interim financial reporting.

Citizens and governing bodies are demanding more transparency regarding a government's overall financial condition and individual transactions than ever before. The movement toward more transparency began just before the economic downturn that emerged in 2008, but really gathered steam with the passage of the American Recovery and Reinvestment Act in 2009, which required quarterly reporting on a national website of Recovery Act-related expenditures. States and many local governments followed by creating their own transparency websites. In 2012, the Governmental Accounting Standards Board, known as GASB, issued two new accounting principles that are designed to provide increased transparency into one of government’s largest unfunded liabilities—pension systems. GASB, through the issuance of Statement No. 67 for pension plans and Statement No. 68 for employers, has dramatically changed the way pensions are calculated and reported in a government’s financial statement. This article will highlight the changes relating to Statement No. 68, focusing on how the new standard will assist state and local policymakers and the public to better understand their pension liabilities.