brands, Corporate income Certificate of Excellence in Financial Reporting - ASBOINTL 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. 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. research, news, insight, productivity tools, and more. 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. Oct 28, 2022 Annual Comprehensive Financial Reports (ACFR) Jan 30, 2023 Annual Summary Contracts Report for the City of New York Nov 21, 2022 Popular Annual Financial Report (PAFR) Mar 1, 2023 Report to the Mayor and . Now, Nationwide has reported a 3.5% fall in annual house prices in June. policy, Privacy 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.. End the Acronym - Government Finance Officers Association The proposal was made after stakeholders raised concerns that the existing acronym sounded like the offensive term. brands, Corporate income organization for It's free! Renaming the Comprehensive Annual Financial Report - GASB (SeeRacial Slur Propels GASB to Mull Renaming Comprehensive Annual Financial Reportin the December 30, 2020, edition ofAccounting & Compliance Alert.). No other changes were made to the reports structure or content. of products and services. Annual Comprehensive Financial Report (ACFR) In October 2021, the Governmental Accounting Standards Board issued Statement No. comprehensive annual financial report and its acronym in generally accepted accounting . Read the background behind this policy recommendation. 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. You can learn more about that recommendation on the GFOA website. All current PTINs will expire on December , by Ashleigh M. Paige The Kansas Department of Revenue has issued a notice regardingL. 2022, H2136, effective from and after . technology solutions for global tax compliance and decision 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. It's free! While we are a U.S. GAAP standard setter, we touch international and international touches us were a global community at this point and particular stakeholders are as well, GASB Chairman Joel Black said during board discussions. The acronym was formerly the name for GFOAs awards program and one of its standing committees. It is the sister board to the FASB and is overseen by the same trustee organization, the Financial Accounting Foundation (FAF). Additionally, the acronym has the same pronunciation as the Arabic word that means unbeliever which is often applied in a derogatory manner. The front part of the report . In the world of governmental accounting, the comprehensive annual financial report is highly valuable in helping residents, public officials, investors, analysts, taxpayer organizations,. Integrated software discount pricing. firms, CS Professional Most browsers include functionality to let you increase or . 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. Both require the City to issue an annual report on its financial position and activity, and to have the report audited Until now, the name applied to those reports was the comprehensive annual financial report. Try our solution finder tool for a tailored set This Statement establishes the term annual comprehensive financial report and its acronym ACFR. Over the past few weeks, we learned that the vast majority of those engaged felt that 1) the traditional and common use of this acronym was an issue worth addressing, 2) that change could be easily and cost-effectively accomplished through clear communication and a shared commitment to advocate for meaningful change, and 3) that this initiative provided an opportunity to demonstrate our professionalism, values, and thought leadership in action. The Government Finance Officers Association (GFOA) is asking all industry affiliates to immediately stop using the common four-letter acronym most often associated with the Comprehensive Annual Financial Report. Itsfree! For instance, the Annual Report would be acceptable, the four-letter acronym even pronounced by saying each letter individually would still not be acceptable. The CFPB also released several reports shining a . corporations, For 98, "The Annual Comprehensive Financial Report," establishes the annual comprehensive financial report and ACFR under GAAP for state and local governments and eliminates the prior name and acronym. To our knowledge, there are no other concerning words or phrases commonplace in the government finance profession. Understanding Comprehensive Annual Financial Reports - MunicipalBonds.com Discuss ballot draft of a final Statement and consider for approval. Implementation Guides (Post-Statement 76), Recent Meeting Minutes and Tentative Board Decisions, Public Hearings, User Forums, Task Force, and Working Group Meetings, Board Meeting Highlights/Articles from the GASB Report, Accounting and Financial Reporting Issues, GOVERNMENTAL ACCOUNTING STANDARDS ADVISORY COUNCIL. Yes. Proper Referencing of the Comprehensive Annual Financial Report - An GFOA takes its commitment to diversity, equity, and inclusion seriously. 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. The Governmental Accounting Standards Board (GASB) issued a pronouncement that changes the name of the most extensive report prepared following its standards to the annual comprehensive financial report or ACFR. Annual Report Explained: How to Read and Write Them - Investopedia The word kaffir was adopted as a derogatory term after 1948 when the Apartheid system was established. Most concerningly, South Africa where this term has ties to Apartheid and is used as a racial slur towards Black South Africans. governments, Explore our How is it different from a regular financial report or budget? 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. 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. Outreach on the topic to senior leadership among stakeholder organizations did not bring unanimous agreement, according to GASB discussions. Read the full Statement 98 on the GASB website. The adoption of GASB Statement No. By using the site, you consent to the placement of these cookies. It now ranks as perhaps the most offensive term in South African English. 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 RE: Comprehensive Annual Financial Report (CAFR) Purpose: this document is intended to be uploaded to online databases so that those searching for materials related to the Comprehensive Annual Financial Report (CAFR) understand the intentional elimination of the acronym, effective March 9, 2021. environment open to Thomson Reuters customers only. to change the "comprehensive annual financial report" to the "annual comprehensive financial report" in its official standards and codification. Regardless, GFOA does not intend to bring back this term. Comprehensive Annual Financial Report (CAFR) The acronym for the Comprehensive Annual Financial Report when said aloud, which is commonplace, is pronounced in the same way as a profoundly offensive racial slur in South Africa. making. GASB consulted with various groups and added the project to its agenda in December of last year. Explore all Email the Webmaster, TRIPS (Traveler Integrated Profile System), Compensation & Travel Report of Executive Positions, Available Balance in the Constitutional Budget Reserve Fund. GASB published an exposure draft in support of renaming the acronym on April 13, 2021, and they are accepting comments through July 9, 2021. financial reporting, Global trade & The offensive version of this term is most often associated with the atrocities of the apartheid regime. management, More for accounting Cherry Bekaert launches foundation; ConvergenceCoaching announces Transformational Leadership Program graduates; and more news from around the profession. Much of the research, best practices, and programs that GFOA produces are relevant to, and recognized by, government finance officers around the world. Management's Discussion and Analysis 19 media, Press 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.. GASB Changes Name of Report to "Annual Comprehensive Financial Report" Suite. 2020 Annual Comprehensive Financial Report Accounting Today is a leading provider of online business news for the accounting community, offering breaking news, in-depth features, and a host of resources and services. 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. management, More for accounting GASB also serves as the oversight board to ensure compliance and communicate any new updates or . 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. Statement No. As the name suggests, a Comprehensive Annual Financial Report ( CAFR) is a set of financial reports produced by local governments, states and other entities to comply with the reporting rules set by Government Accounting Standards Board ( GASB ). That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. Make sure you're getting it all, New guidance on tax credits for clean energy projects, Deadline for MP Elite 2023 submissions extended, Recruit, retain, repeat: Top tips for talent, On the move: Nathan Wechsler names next managing director. evaluating whether to change the name of the report entirely to completely disassociate with the acronym. corporations. As an organization made up of 21,000 finance professionals that serve diverse communities across the country, and a growing list of important partners around the world, GFOA believes it is the responsibility of all government finance professionals to embrace change that moves us towards becoming more thoughtful, responsible, and inclusive global citizens. perform quality professional services while serving the public interest. View frequently asked questions and responses related to GFOA's new policy statement. 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. Denise LugoEditor, Accounting and Compliance Alert. brands, Social 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. Added to current technical agenda: December 2020. 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 that as influential community leaders with a shared commitment to diversity, equity, and inclusion, there is a responsibility to act. Connect with other professionals in a trusted, secure, The leading CPA financial planners with over $1 billion in assets under management, from Accounting Today's annual ranking. From the taxpayer's viewpoint, what are the most important numbers in an ACFR? Authoritative standards encourage governments to issue their basic financial statements in the broader context of an Annual Comprehensive Financial Report (ACFR). services, Racial Slur Propels GASB to Mull Renaming Comprehensive Annual Financial Report, Stay on top of changes in the world of tax, accounting, audit, and employee benefits, U.S. Accounting Rulemakers Studying How Investors Use Artificial Intelligence to Consume Financial Data, Concerns Bubbling Up Over Implications of Financial Data Transparency Act for GASB, Much Talk, Little Action on Cryptocurrencies Among Cities and States, GASB Says, Companies Can Focus Solely on Climate-Related Disclosures at First Adoption Next Year, ESG Rulemaker Says, Kansas Issues Guidance Regarding Delivery Fees Charged by Retailers, For And we are working to incorporate our values into every aspect of how we do business. Out with the old, in with the new: Comprehensive Annual Financial Subscribe to our Checkpoint Newsstand email to get the latest tax, accounting, audit, and employee benefits news delivered to your inbox each week. Financial reports prepared in accordance with GAAP are required to contain basic financial statements (including notes to financial statements) and certain required supplementary information (such as managements discussion and analysis). brands, Social 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. collaboration. Some are essential to make our site work; others help us improve the user experience. GFOA staff was asked to stop using the acronym in their daily communications while membership, employees, and other stakeholders could be consulted. Ive been at the beginnings of GASBs conversations of this and even now when I still see the name as it is, I still say it and then I try to correct myself, and Im very conscious about the sensitivities of the name and the hurt that it has caused, she said. profession, TSCPA acts on behalf of its members and provides support, enabling its members to environment open to Thomson Reuters customers only. The work would eliminate the acronym CAFR, generally pronounced KAFF-ur, which sounds like "kaffir," a profoundly offensive term directed at Black South Africans. 1410.2 Annual Report to Shareholders. All rights reserved. The Journal of Accountancy is now completely digital. PDF Proper Referencing of the Comprehensive Annual Financial Report An PDF COMPREHENSIVE ANNUAL FINANCIAL REPORT - City of Scottsdale Audit & In October 2021, the Governmental Accounting Standards Board issued Statement No. NCGA Statement 1 subsequently was carried over in force in 1984 by GASB Statement(GASBS) No. Annual Comprehensive Financial Report - Office of Financial Management shipping, and returns, Cookie A cloud-based tax making. 1,Authoritative Status of NCGA Pronouncements and AICPA Industry Audit Guide. SEC.gov | Financial Reporting Manual The Governmental Accounting Standards Board (GASB) has taken immediate action to rename the GAAP comprehensive annual financial reports. Our organization is currently undergoing an internal transformation as we look critically at our own internal workplace policies, the interactions and support we provide to our members, and the way in which we engage with partners. GFOAs leadership team understands that there may always be biases and concerns of which we are unaware, but has determined, with significant member input, that when confronted with new information on how our words or actions may negatively impact a particular group, it is our collective professional responsibility to give that information serious consideration. The GASB standards are recognized as authoritative by state and local governments, state Boards of Accountancy, and the American Institute of CPAs. accounts, Payment, The ACFR supplements the basic financial statements with: Introductory information. management, Document ACFR Title Update - May 2021: In 2021 the Comptroller's office renamed its Comprehensive Annual Financial Report to the State of Texas Annual Comprehensive Financial Report (ACFR). The board discussed how to approach the topic, i.e., whether to just remove the acronym CAFR and hold educational sessions about why it is offensive or whether to actually change the name Comprehensive Annual Financial Report to ensure it was eliminated. 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. 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. shipping, and returns, Cookie 2021 Comprehensive Annual Financial Report . We believe that this action is in full alignment with our professional code of ethics. Aside from the name, no substantive changes will be made to the report as a result of the proposal. Suite. 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. As a member of GFOA, PRISM has complied with its policy statement will henceforth refer to the report as the Annual Comprehensive Financial Report (ACFR), the name proposed by GASB. 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. 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. The next generation of online research gives you practical insight and expertise on accounting topics that are complex, undergoing changes, or challenging to apply. What does it report? Financial Reports including Comprehensive Annual Financial Reports by year. GFOA takes its commitment to diversity, equity, and inclusion seriously. customs, Benefits & TO: PRISM Staff and Members We are working hard to find new opportunities to demonstrate our commitment to diversity, equity, and inclusion. Subscribeto ourCheckpoint Daily Newsstandemail to get all the latest tax, accounting, and audit news delivered to your inbox each weekday. 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. [Rule 14a-3 (b) (1)] 1410.3 Royalty Trusts. PDF Comprehensive Annual Financial Report Sections - MemberClicks 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). The acronym for comprehensive annual financial report sounds like an ethnic slur that ranks among the most offensive terms in South African English. State Government Annual Financial Reports, Proceso de Quejas para el Acceso de Idioma, Controllers Office streamlined processes. certified public accountants in Tennessee. The acronym for "comprehensive annual financial report" sounds like an ethnic slur that ranks among the most offensive terms in South African English. It should be noted, however, that because the terminology is ingrained in the AICPAs auditing standards, the Blue Book, textbooks, and other professional literature, changing it would have a secondary impact as those publications are updated to reflect the change, the summary states. . Do all governmental organizations file ACFRs? Effective Immediately, no end-date identified. GASB standards are recognized as authoritative by state and local governments, state Boards of Accountancy, and the American Institute of CPAs. We are proud to present the 2022 Annual Comprehensive Financial Report (ACFR) as well as the 2022 Financial Highlights or the "Popular Report". The Introductory section orients and guides the . 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. policy, Privacy and services for tax and accounting professionals. It must be audited by an independent auditor using generally accepted government auditing standards. Summary of Statement No. 98 - GASB For reprint and licensing requests for this article, Like what you see? Connect with other professionals in a trusted, secure, Until now, the name of the report was the comprehensive annual financial report. Thomson Reuters/Tax & Accounting. Annual Report: An annual report is a publication that public corporations must provide annually to shareholders to describe their operations and financial conditions. Offensive acronym leads to GASB's name change proposal