comprehensive annual financial report name change

Explore all This Statement establishes the term annual comprehensive financial report and its acronym ACFR. Otherwise, no changes were made to the reports structure or content. financial reporting, Global trade & Integrated software Through the years, GFOA has been a leading industry partner helping to build financial best practices in South Africas emerging democracy. The changes in the name and acronym were widely supported by individuals and stakeholder groups that responded to an exposure draft it issued in April proposing the changes (see story). The proposal was made after stakeholders raised concerns that the existing acronym sounded like the offensive term. making. Robotic process automation carries many rewards, but a recent study has identified a handful of key risks that professionals must account for. The GASB on January 12, 2021, agreed to draw up a proposal to change the name Comprehensive Annual Financial Report (CAFR) to Annual Comprehensive Financial Report (ACFR) - efforts to eliminate the chords of an offensive slur directed at Black South Africans. View frequently asked questions and responses related to GFOA's new policy statement. Read the background behind this policy recommendation. services, Tackle your most challenging audit needs anytime, anywhere with one audit solution, Stay on top of changes in the world of tax, accounting, audit, and employee benefits, Cornerstone Researchs Elaine Harwood on Trends in PCAOB, SEC Accounting and Auditing Enforcement Actions, SEC Delays Climate Change Disclosure Rulemaking, PCAOB Proposes Revised Audit Requirements for Non-Compliance with Laws and Regulations, Michigan Issues Guidance on New Law on Reporting Adjustments From Partnership Level Audits, House Democrat Presses Chinese Ambassador on PCAOB Audit Inspection Deal, Republican Bill Would Raise Tax on University Endowments, For Corporate Integrated software Toolkit Here are some resources that we have developed that can assist you in communicating this change in your own organization: View full policy statement approved by GFOA Executive Board on March 5, 2021 and by GFOA membership on July 12, 2021. It has been pointed out to the GASB that that pronunciation sounds like the word kaffir, which is a profoundly offensive term directed at Black South Africans. A cloud-based tax The GASB added a project this month to its agenda to consider renaming the Comprehensive Annual Financial Report (CAFR), and if so, with what name, according to a December 18, 2020 update of its technical agenda. With more than 21,000 members that serve diverse communities around the country and support strategic partners around the world (including the Chartered Institute of Government Finance Audit and Risk Officers in South Africa), GFOA has determined that the continued use of this acronym is in conflict with the organizations core professional values. For many years GFOA has maintained a strong relationship with the Chartered Institute of Government Finance Audit and Risk Officers (CIGFARO) in South Africa. 98. In this way, when someone searches for the acronym they will find the notification referencing the new way forward. 98, Annual Comprehensive Financial Report, and using the acronym ACFR, which is generally being pronounced "AK-fer," with the first syllable rhyming with "back" and second sounding like "fur.". The annual report does not need to include the separate financial statements of other entities, pro forma data, or schedules required by Articles 3, 8, 11 and 12 of Regulation S-X, or predecessor audit reports. An offensive-sounding acronym led to GASBs proposal Tuesday to change the name of the comprehensive annual financial report to the annual comprehensive financial report.. 98, Annual Comprehensive Financial Report, and using the acronym ACFR, which is generally pronounced it is being pronounced "AK-fer," 2. Some are essential to make our site work; others help us improve the user experience. Itsfree! It's free! It is now woven throughout GAAP and widespread in practice. The GASB on January 12, 2021, agreed to draw up a proposal to change the name Comprehensive Annual Financial Report (CAFR) to Annual Comprehensive Financial Report (ACFR) efforts to eliminate the chords of an offensive slur directed at Black South Africans. Stakeholders and accounting software suite that offers real-time This site uses cookies to store information on your computer. industry questions. Auditor's Report 16 . Subscribeto ourCheckpoint Daily Newsstandemail to get all the latest tax, accounting, and audit news delivered to your inbox each weekday. At this time, GFOAs recommendation is to eliminate use of the acronym as it extends to any future written and verbal communications. Upon learning of the challenges associated with a term common across the industry, GFOAs leadership team quickly agreed that this issue needed to be further evaluated. One of the executive directors I spoke to told me one of his board members is from South Africa and he reached out to him and asked his opinion, and his opinion unsurprisingly is that changing it would be a good thing, a GASB staff member told the board. The Governmental Accounting Standards Board (GASB) recently issued a pronouncement, Statement 98, that changes the name of the most extensive report prepared following its standards to the annual comprehensive financial report (ACFR). to change the "comprehensive annual financial report" to the "annual comprehensive financial report" in its official standards and codification. research, news, insight, productivity tools, and more. The Taxpayer Advocate's mid-year report to Congress said the service had improved its performance during this year's tax season, though. And now the agency , The Public Company Accounting Oversight Board (PCAOB) on June 6, 2023, voted 3 to 2 to issue a proposal that , by Peter G. Pupke, Esq. The CAFR is a set of U.S. government financial statements comprising the financial report of a state, municipal or other governmental entity that complies with the accounting requirements promulgated by the GASB. Changing the order of the words without adding any other words does help to convey the message that its a renaming rather than the changing of the provisions with regard to the content of what exists, GASB member James Brown said. While doing so, GFOA and its partners can demonstrate our values in action, become more intentionally inclusive, and create safer spaces for the important work that we conduct at home and abroad. We are proud to present the 2022 Annual Comprehensive Financial Report (ACFR) as well as the 2022 Financial Highlights or the "Popular Report". An Annual Comprehensive Financial Report, formerly called Comprehensive Annual Financial Report (CAFR)) [1] is a set of U.S. government financial statements comprising the financial report of a state, municipal or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board . The GASB is the nations main accounting rulemaking body that establishes accounting and financial reporting standards for U.S. state and local governments that follow GAAP. profession, TSCPA acts on behalf of its members and provides support, enabling its members to GFOA established the Certificate of Achievement for Excellence in Financial Reporting Program (COA Program) in 1945 to encourage and assist state and local governments to go beyond the minimum requirements of generally accepted accounting principles to prepare comprehensive annual financial reports that evidence the spirit of transparency and full disclosure and then to recognize individual . Proposed Statement establishes the term annual comprehensive financial report and its acronym ACFR. Audit & media, Press In the summer of 2020, we established the Racial Equity Taskforce, an internal group that has developed programs and helped inform our long-term internal and external approach to racial equity at GFOA. The board agreed that education only would not fix the situation, as the acronym has been around for decades. No changes were made to the report's structure or content, according to the GASB. 98, Annual Comprehensive Financial Report, and using the acronym ACFR, which is generally pronounced it is being pronounced AK-fer,. releases, Your The offensive version of this term is most often associated with the atrocities of the apartheid regime. The discussions come as the FAF has been stepping up its pace to diversify the organization and the standard-setting boards. collaboration. 2023 Government Finance Officers Association of the United States and Canada, Alliance for Excellence in School Budgeting, Accounting, Auditing, & Financial Reporting, Employment Resources for Finance Officers, Imposed Fee and Fine Use by Local Governments, Accounting, Auditing and Financial Reporting, Intergovernmental Relations and Federal Fiscal Policy, Public Employee Pension and Benefits Administration, Tax-Exempt Financing and the Municipal Bond Market. As we and our stakeholders are part of a global community, we do not wish to be offensive to anyone, so we have undertaken the project to address this.. 2022 Annual Comprehensive Financial Report Download the 2022 Annual Comprehensive Financial Report [PDF, 219.0MB] as a single document or choose report sections below. Awareness of racial justice issues has been growing in the accounting profession, especially after the protests last year over the killings of George Floyd and Breonna Taylor. The Annual Comprehensive Financial Report (ACFR) is a set of U.S. government financial statements comprising the financial report of a state, municipal or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board (GASB). What does it report? It now ranks as perhaps the most offensive term in South African English. Yes. It is acceptable for localities to post the available Statement of Name Change Document to the database or website alerting interested stakeholders to the name change and the effective date. 1,Authoritative Status of NCGA Pronouncements and AICPA Industry Audit Guide. The requirements of Statement 98 are effective for fiscal years ending after Dec. 15, 2021. We believe our members and partners hold a commitment to diversity, equity and inclusion as deep as our own. The accounting profession needs new tools and new approaches to recruiting and retention. The Government Finance Officers Association (GFOA) recommends immediately adopting the new name recently promulgated by the Governmental Accounting Standards Board (GASB) in Statement No. GASB staff said 11 of 13 leaders at stakeholder organizations agreed that renaming the Comprehensive Annual Financial Report was the way to go, and education alone would not be sufficient. GASB issued an exposure draft, The Annual Comprehensive Financial Report, to explain the proposed change. NCGA Statement 1 subsequently was carried over in force in 1984 by GASB Statement(GASBS) No. brands, Social The CFPB also released several reports shining a . The word kaffir was adopted as a derogatory term after 1948 when the Apartheid system was established. shipping, and returns, Cookie With the pipeline problem on everyone's mind, here are the most important strategies and approaches firms need to take to remain competitive. Management's Discussion and Analysis 19 Recently it came to the attention of GFOA leadership that this four-letter acronym, frequently leveraged in the government financial accounting industry to shorten the name of the Comprehensive Annual Financial Report, is pronounced the same way as a profoundly offensive racial slur in South Africa. When you pronounce the acronym, it is a highly offensive racial slur directed toward Black South Africans, GASB Chair Joel Black said in a media advisory. Certificate of Achievement for Excellence in Financial Reporting 14 . 98, Annual Comprehensive Financial Report, and using the acronym ACFR, which is generally being pronounced "AK-fer," with the first syllable rhyming with "back" and second sounding like "fur." The ACFR supplements the basic financial statements with: Introductory information. Your online resource to get answers to your product and and services for tax and accounting professionals. The front part of the report . State and local governments can voluntarily present those required components in an ACFR, which also includes extra background and explanatory information from management, additional financial statements disaggregating certain columns in the basic financial statements, and a statistical section of 10-year trends in financial, economic, demographic, and operating information. Your online resource to get answers to your product and 2023 Government Finance Officers Association of the United States and Canada, Alliance for Excellence in School Budgeting, Accounting, Auditing, & Financial Reporting, Employment Resources for Finance Officers, Imposed Fee and Fine Use by Local Governments, Accounting, Auditing and Financial Reporting, Intergovernmental Relations and Federal Fiscal Policy, Public Employee Pension and Benefits Administration, Tax-Exempt Financing and the Municipal Bond Market. GASB issued a pronouncement Tuesday to change the term after some of its stakeholders raised concerns that the acronym of the prior name of the report sounds like an offensive term for Black South Africans when spoken. Table of Contents Introductory section Letter of Transmittal Statewide Elected Officials as of June 30, 2022 2022 State Organization Chart Financial section environment open to Thomson Reuters customers only. Renaming the Comprehensive Annual Financial Report. So what is an ACFR? [Rule 14a-3 (b) (1)] 1410.3 Royalty Trusts. Separately, a similar pronunciation also has a deeply controversial meaning in Arabic for those who practice Islam. policy, Privacy The Comprehensive Annual Financial Report of the City of Scottsdale, Arizona, (the City) for the fiscal year ended June 30, 2020, is submitted in accordance with City Charter and Arizona Revised Statutes. It is a term that took on its derogatory meaning during Apartheid where it was used to degrade, undermine, and strip South Africans of their dignity and humanity. It must be audited by an independent auditor using generally accepted government auditing standards. State Government Annual Financial Reports, Proceso de Quejas para el Acceso de Idioma, Controllers Office streamlined processes. Statement of Name Change . Most browsers include functionality to let you increase or . Background: The acronym for the comprehensive annual financial report generally is pronounced KAFF-ur. The acronym for "comprehensive annual financial report" sounds like an ethnic slur that ranks among the most offensive terms in South African English. Discuss ballot draft of a final Statement and consider for approval. To change the text size you can use your web browser's settings. I just dont think keeping the name the same and then just trying to educate as to why we dont want to use that acronym is going to be enough, GASB member Caroline Smith said. The name change was prompted by GASB stakeholders raising concerns that the acronym of the prior name of the report sounds like a profoundly offensive term when spoken. Until now, the name of the report was the comprehensive annual financial report. The adoption of GASB Statement No. GFOA staff was asked to stop using the acronym in their daily communications while membership, employees, and other stakeholders could be consulted. Information on individual funds and discretely presented component units. The effective date should be fiscal years ending after December 15, 2021. Learn more by downloading this comprehensive report. Next . Instead, GFOA recommends immediately adopting the new name recently promulgated by GASB in Statement No. Financial Reports Annual Comprehensive Financial Report Statement of Name Change. tax, Accounting & Thomson Reuters/Tax & Accounting. 98, Annual Comprehensive Annual Report, officially changing the name comprehensive annual financial report to annual comprehensive financial report and the acronym to ACFR. We believe moving our industry away from the acronym is the right thing to do and that GASB is very likely to move in the same direction. Until now, the name applied to those reports was the comprehensive annual financial report. GASB staff said changing the name would be the better path because as long as the terminology remains in the standards, stakeholders will continue to use it because it has the sense of being official because it is in the standards.. The change was made in accordance with industry guidelines and standards (PDF). We are confident that as proven professionals they will help us lead on this issue. Moreover, there would not be any direct benefit to entities in terms of making decisions or assessing accountability, but it can be asserted that demonstrating a willingness to make the effort necessary to avoid inadvertently giving offense would be beneficial in other ways to the GASB and its stakeholders.. Corporate The number of SEC accounting and auditing enforcement actions rose by 55 percent in fiscal 2022 with jumps in , Its official: the Securities and Exchange Commission has delayed its climate change disclosure rulemaking once again. A pre-ballot draft of the issue will be discussed in February, and in April the board will vote on the issuance of an exposure draft to get views on the matter from the public, according to the discussions. . To read more about the name and acronym . In 2019, we amended the code of ethics to include a specific commitment to diversity and inclusion, an important step in making public our responsibility and the responsibility of our members to these initiatives. Effective Immediately, no end-date identified. As per the GFOA policy statement on March 9, 2021, the Government Finance Officers Association (GFOA) has asked all industry affiliates to immediately stop using the common four-letter acronym (CAFR) most often associated with the Comprehensive Annual Financial Report. Association of International Certified Professional Accountants. The termComprehensive Annual Financial Reportwas established in GAAP in 1979 by the National Council on Governmental Accounting (NCGA) Statement 1,Governmental Accounting and Financial Reporting Principals. Please see Memorandum [PDF] issued by State of Alaska State Accountant regarding the Name Change for the Comprehensive Annual Financial Report effective March 9, 2021.. Skip to Content. The name of the report has been around since 1979. Download the 2020 Annual Comprehensive Financial Report [PDF, 13.5MB] as a single document or choose report sections below. A final statement with the change in slated for October this year, the discussions indicated. So with that the best approach is to just start with a clean slate its been around for so long were going to have to do education., The project was added to the GASBs agenda in December. The more you buy, the more you save with our quantity making. Until now, the name of the report was the comprehensive annual financial report. research, news, insight, productivity tools, and more. evaluating whether to change the name of the report entirely to completely disassociate with the acronym. The Popular Report provides state government's financial highlights, including information on the sources of state revenues and how those revenues are spent, in a condensed and simplified format. While we support the full removal of the acronym from any digital assets, each local government must determine what resources are available to carry out additional implementation or historic adjustments related to this new recommendation. The board plans to begin discussions during its January 12-13 meetings, focused on consideration of terminology change, a review of the first draft of the standards section of an exposure draft, and cost-benefit considerations, its meeting agenda states. brands, Corporate income In the world of governmental accounting, the comprehensive annual financial report is highly valuable in helping residents, public officials, investors, analysts, taxpayer organizations,. technology solutions for global tax compliance and decision The changes in the name and acronym were widely supported by individuals and stakeholder groups that responded to the April 2021 Exposure Draft proposing the changes. of products and services. Our favorite ideas, insights, strategies, tactics and best practices from the AICPA's Engage conference. 2023 Government Finance Officers Association of the United States and Canada, Alliance for Excellence in School Budgeting, Accounting, Auditing, & Financial Reporting, Employment Resources for Finance Officers, Imposed Fee and Fine Use by Local Governments, Accounting, Auditing and Financial Reporting, Intergovernmental Relations and Federal Fiscal Policy, Public Employee Pension and Benefits Administration, Tax-Exempt Financing and the Municipal Bond Market, Proper Referencing of the Comprehensive Annual Financial Report - An Inclusivity Concern, Media partners, especially those covering government and financial news and analysis, The broader national bond management and government finance community. For reprint and licensing requests for this article, Like what you see? We believe that this action is in full alignment with our professional code of ethics. A primarily standards-setting approach would eliminate both the financial report name and the offensive acronym from the GASB's standards, replacing them with a . 98, The Annual Comprehensive Financial Report, establishes the Annual Comprehensive Financial Report and ACFR in GAAP for state and local governments and gets rid of the previous report name and offensive acronym. Annual Comprehensive Financial Reports (ACFR) For the Fiscal Years Ended June 30, 2022 and 2021 In accordance with New York City Charter 93 (l), the Annual Comprehensive Financial Report (ACFR) is published within four months after the close of each fiscal year. While doing so, GFOA and our partners can demonstrate our values in action, become more inclusive, and create safer spaces for the important work that we conduct. GASB consulted with various groups and added the project to its agenda in December of last year. accounting, Firm & workflow GASB also serves as the oversight board to ensure compliance and communicate any new updates or . corporations, For You can learn more about that recommendation on the GFOA website. (SeeRacial Slur Propels GASB to Mull Renaming Comprehensive Annual Financial Reportin the December 30, 2020, edition ofAccounting & Compliance Alert.). consulting, Governmental Accounting and Financial Reporting Principals, Authoritative Status of NCGA Pronouncements and AICPA Industry Audit Guide, Products & accounting, Firm & workflow 98. The requirements of Statement 98 take effect for fiscal years ending after Dec. 15, 2021, although GASB is encouraging earlier application of the new term to discourage the use of the earlier terminology. firms, CS Professional These learnings cemented our desire to move swiftly and decisively to encourage elimination of the acronym. 98 may result in changes to URL web links for reports published in previous fiscal years. Outreach on the topic to senior leadership among stakeholder organizations did not bring unanimous agreement, according to GASB discussions. policy, Privacy governments, Business valuation & 1410.2 Annual Report to Shareholders. customs, Benefits & A pre-ballot is a rough drawing of what will be proposed. Once this issue came to our attention, it was clear that working with our stakeholders to rename this important document was simply the right thing to do, said GASB Chair Joel Black in a statement Tuesday. The Governmental Accounting Standards Board and the Governmental Finance Officers Association have recommended that states and other industry affiliates stop using the four-letter acronym commonly associated with the Annual Comprehensive Financial Report. Replacing the term would have no impact on the effort required to prepare, audit, or use GAAP-based financial statements, the board said in a summary of the project. Due to extensive interest, Accounting Today is extending the deadline for submissions for its annual Managing Partner Elite list to the end of the day on Monday, July 10. firms, CS Professional Email the Webmaster, TRIPS (Traveler Integrated Profile System), Compensation & Travel Report of Executive Positions, Available Balance in the Constitutional Budget Reserve Fund. Beginning with the report dated June 30, 2020, the State Controllers Office (SCO) changed the name of the Comprehensive Annual Financial Report to Annual Comprehensive Financial Report, in compliance with Governmental Accounting Standards Board (GASB) Statement No. Our point of view is that while there may always be biases and concerns of which we are unaware, when confronted with new information on how our words or actions may have unintended impact it is our responsibility to give that information serious consideration. The Governmental Accounting Standards Board (GASB) recently issued a pronouncement, Statement 98, that changes the name of the most extensive report prepared following its standards to the annual comprehensive financial report (ACFR). In a matter of weeks, our organization held more than 12 focus groups and solicited the input and counsel of diverse contributors both inside and outside our organization. releases, Your Table of Contents Introductory section Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Statewide Elected Officials as of June 30, 2020 2020 State Organization Chart Financial section While GFOA serves governments in the US and Canada, the organization has significant international partners, including in South Africa through the Chartered Institute of Government Finance, Audit and Risk Officers (CIGFARO). industry questions. The GASB standards are recognized as authoritative by state and local governments, state Boards of Accountancy, and the American Institute of CPAs. Connect with other professionals in a trusted, secure, Where can I find ACFRs? Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofAs editorial director. Accountants typically accidentally fall into using the acronym as it is ingrained in the profession to use acronyms, board members said. While GFOA recognizes that the spellings of the South African slur, the Arabic term, and the acronym are different as are the contexts in which they are used the organization has determined with significant member input that as influential community leaders with a shared commitment to inclusivity and global partnerships, there is a responsibility to act. We are proud of the diverse make-up of our internal staff from the board, to every employee. Denise LugoEditor, Accounting and Compliance Alert. certified public accountants in Tennessee. environment open to Thomson Reuters customers only. The Governmental Accounting Standards Board is changing the term "Comprehensive Annual Financial Report" to "Annual Comprehensive Financial Report" because the abbreviation is often pronounced the same way as a derogatory term.

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