Table Of Content

public sector accounting to explore the applicabil- Jeffrey W. Green, CPA, a member of AGA’s Washing- Government-wide statements of state and local ity of XBRL. The lessons learned can educate the ton, D.C. Chapter, is a partner with Kearney & Company. governments provide information about operational public sector regarding potential costs, benefits accountability. These statements repthoe firnatnci al David M. Zavada, CPA, CDFM, a member of and future applications. position and results of operation for a government. AGA’s Northern Virginia Chapter, is a partner Citizens groups, policymakers and government offi- JosephL . Kull, CGFM, CPA, a member of AGA‘s Wash- with Kearney & Company. Cials can use these statements to gain better insight ington, D.C. Chapter, is a directori nt he Washington to a government's financial health by comparing Federal Practice, PricewaterhouseCoopers LLC. certain types of data among similar governments. Chon Abraham, Ph.D., is assistant professor, Operations Reforming Financial Management and Information Systems Management, at the Mason at the Departmento f Defense Bruce W. Chase, Ph.D., CPA, a member of AGA’s Roanoke Chapter, is professor of Accounting at School of Business, College of William and Mary. By: Tina W. Jonas Radford University. Despite the best of intentions, financial manage- Robert L. Taylor, Ph.D., is a professor of Hotlines Can Help Government Agencies mpeernsti spterdo blfermosm yaet arth et o U.ySe.a r Deapnda rtadmmeinnti storf aDtieofne nsteo Marketing at Radford University. Control Misconduct administration. This article offers a report on the Robert H. Phillips, Ph.D., is an associate Professor By: Ralston McCracken progress made and the challenges that remain of Information Technology at Radford University. \Ilegal and unethical behavior—fraud, theft, dis- Tina W. Jonas is Under Secretary of Defense crimination, bribes, kickbacks—can do significant (Comptroller), U.S. Department of Defense. Introducing Derivative Accounting for Gevernments damage to the reputations and bottom iines of any businessi n any industry. Government agencies are By: Lawrence Metzger, Ph.D., CPA, CMA, CFM part of this growing trend and are steadily adopting The Deterioration of Investor Tools and the In an effort to bring more transparency and proactive methods to fight unethical and illegal acts. Resulting Fiduciary Challenges relevance to government financial statements and re- Ralston McCracken is vice president of sales and By: Gregory W. Smith porting, the GASB has issued an exposure draft titled business development at The Network, Inc Accounting and Financial Reporting for Financial This article examines whether the fundamental tools Instruments. This paper examines the new exposure we have traditionally relied upon in our investment draft with the use of an interest rate swap as an process continue to provide such protection in the example. Journal entries and financial statement Performance Reporting by State Agencies: evoeurn memtber s orb eneficiaries experience losses disclosures are illustrated over a three-year period Bridging the Gap between Current Practice and the GASB-Suggested Criteria Gregory W. Smith is general counsel, Colorado Lawrence M. Metzger, Ph.D., CPA, CMA, CFM, is Public Employees’ Retirement Association professor of Accounting at Loyola University Chicago. By: Kenneth A. Smith, Ph.D., Rita Cheng, Ph.D CGI -PA, Ola Smith, Ph.D., CPA, and Lee Ph.D., CGFM Efforts and Accomplishments in Winter 2008 Kenneth A. Smith, Ph.D., s founding member of Communicating with the Citizenry AGA’s Mid-Willamette Valley Chapter, is an assistant professor of accounting, Willamette University. By: Judith Harris, D.B.A, Karen McKenzie, Ph.D., The Government Management Reform Act of 1994: Rita Cheng, Ph.D., CGFM, CPA, a member of AGA’s CGFM, CPA, Randall Rentfro, Ph.D A Retrospective of Achievements and Remaining Southern Wisconsin Chapter, is a professor of ac- This article discusses the effectiveness of three Challenges and a Look to the Future primary means of communicating with the citizenry counting, provost and vice chancellor for Academic beyond the CAFR: GASB’s SEA reporting, GFOA’s By: Jeffrey C. Steinhoff, CGFM, CPA, CFE, and Affairs University of Wisconsin-Milwaukee PAFR reporting, and AGA’s new Citizen-Centric Robert F. Dacey, JD, CGFM, CPA Ola Smith, Ph.D., CPA, is an associate professor, Reporting Program. We review the level of govern- On October 13, 1994, President Bill Clinton signed into Western Michigan University. ment involvement with individual programs, as well law the Government Management Reform Act (GMRA), Lee Schiffel, Ph.D., CGFM, an AGA At-Large member, is an as across programs. which has as its goal “to provide a more effective, efficient and responsive government.” GMRA has vari- assistant professor of accounting, Valparaiso University. Judith Harris, DBA, is an associate professor of ousf inancial management reform provisions related accounting in the H. Wayne Huizenga School of to the increased use of electronic payments, franchise Business and Entrepreneurship at Nova fund pilots, and reports elimination and consolidation Fall 2008 Southeastern University Almost fifteen years later, how have we done? Karen McKenzie, Ph.D., CGFM, CPA, an AGA Jeffrey C. Steinhoft, CGFM, CPA, CFE, a member At-Large member, is a professor of accounting in the Accountability and Oversight: of AGA’s Northern Virginia and Washington, D.C H. Wayne Huizenga School of Business and Entre- Who's Minding the Store? Chapters, retired earlier this year after 40 years of preneurship at Nova Southeastern University. government service. His most recent position was By: Jeffrey W. Green, CPA, and David M. Zavada Randall Rentfro, Ph.D., is an assistant professor managing director, Financial Management and Assur- CPA, CDFM of accounting in the H. Wayne Huizenga School ance, U.S. Government Accountability Office (GAQ) Accountability and oversight have become two of of Business and Entrepreneurship at Nova He is an AGA Past National President and is known the most popular topics in government. Everyone can Southeastern University in the Association as the “father” of the Certified Gov- tell a story in which the absence of these essential ernment Financial Manager (CGFM) Program. He now functions caused major problems for both government serves as an independent consultant to organizations entities and the taxpayetrhsey serve. Still, confusion Government-wide Information and seeking solutions to government financial manage- exists over who is responsible for each and how Operational Accountability ment and auditing challenges they combine to provide greater under-standing and Robert F. Dacey, JD, CGFM, CPA, a member of AGA’s transparencyi n government program management By: BruceW . Chase, Ph.D., CPA, RobertL . Taylor, Northern Virginia Chapter, is the chief accountant, and results. In short, “Who's minding the store?” Ph.D., and Robert H. Phillips, Ph.D U.S. Government Accountability Office. SPRING 2009 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT 59 2008 Journal Index Continued Has the Government Management Reform Act Financial Management The Alabama Initiative—ODpooersn ifonr gth e Achieved Its Goals? Providing a Foundation for Transition Next Ge ition of State Financial Managers The 2008 Annual CFO Survey By: Sikiru A. Fadairo, Ph.D., Rosemary Williams, ar, Ph.D., CGFM, CPA DBA, CPA, Ronald Trotman, DBA, Anthony By: Clifton A. Williams, CGFM, CPA h.D., CGFM, CPA, and Onyekelu-Eze, MS, M.Ph Federal financial executives and managers CGFM, CPA The purposes of Government Management Reform interviewed in the 2008 CFO Survey feel they have Current employment demographics for the govern- Act (GMRA) are to provide a more effective, accomplished much in the last seven years. Certain- mental sector indicate increasing numbers of retire- efficient and responsive government through a ly, the federal government keeps better books than ments and resignations. This article reports on the series of management reforms primafrori feldeyra l before, and its financial information is more accu- initiatives taken by the state of Alabama in partnership human resources and financial management. To rate. Now, the federal financial community is ready with Auburn University Montgomery and the Associa- accomplthies thas k, GMRA authorizetshe U.S. to build on that foundation. At issue is the nature of tion of Government Accountants to hire new and/or Office of Management and Budgett o consolidate the future framework of financial management. This retain current financial management personnel. and simpliftyh e financial management reports that article reports on this year’s survey results. agencies are required to prepare and to adjust the Judith A. Kamnikar, Ph.D., CGFM, CPA, CGFO, is frequency and due dates of the reports. Clifton A. Williams, CGFM, CPA, a member of AGA's professor of accounting at Auburn University Washington, D.C. Chapter, is a partner at Grant Montgomery and a past president of AGA’s Sikiru A. Fadairo, Ph.D., is chair of the Computer Thornton LLP in Alexandria, VA. He has been the lead Montgomery (AL) Chapter and the Alabama GFOA. Information Systems Department and professor of researcher and author of the AGA’s annual federal Edward G. Kamnikar, Ph.D., CGFM, CPA, CGFO, is computer information systems at Medgar Evers CFO survey and is a former federal financial manager. associate professor of accounting at Troy University College, The City University of New York. Montgomery and a past president of AGA’s Mont- Rosemary Williams, DBA, CPA, a member of AGA’s gomery (AL) Chapter and the Alabama GFOA. New York Chapter, is chair of the Accounting How to Survive an IG Audit Keren H. Deal, Ph.D., CGFM, CPA, is assistant profes- Department and professor of accounting at Medgar By: Michael Kristek, CGFM sor of accounting at Auburn University Montgomery Evers College, The City University of New York. Aboutt o be audited? Here’s what you should—and and a member of AGA’s Montgomery (AL) Chapter. Ronald Trotman, DBA, a member of AGA’s New York should not do—to get through it and learn from it. Chapter, is a professor of accounting at Medgar Evers College, The City University of New York. Michael Kristek, CGFM, a member of AGA’s New Mexico Chapter, retired earlier this year after 25 Anthony Onyekelu-Eze, MS, M.Phil, is a professor years of federal service and almost 70 audits. He of computer information systems at Medgar Evers worked most recently for the Office of Inspector College, The City University of New York. General, U.S. Department of Energy. He is a longtime member of AGA’s Journal Editorial Board. The CGAP® certification was designed by goverfiment auditors Are You a for auditors at all levels of government: federal, state, local, and quasi-governmental. Earning the CGAP designation validates your understanding of the principles unique to public-sector Government auditing, including: Au 1 Ito r? e Government audit practices and methodologies. Performance management. Public accountability. The government audit environment. Then you should be a 1A and government auditing’ Standards (Red Book and Yellow Book). Exams are offered year-round through computer-based bvaaite testing in over 200 locations throughout the U.S. Demonstrate your government audit professionalism. Make your career Government distinctive. For information on becoming a Certified Government Auditing Professional, visit www.theiia.org/CGAP-AGA today. Auditing Professional® Bholomlakjeieelcome)a Talasgalcimnlelelice)a 60 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT SPRING 2009