GovFi Prize

GFOA has recognized awardees on each of the four questions and the articles will be publishing in the Fall 2024 Public Finance Journal. Click here to learn more about the awardees.

Question 1

Is the 80-20 Rule Operative for Financial Analysts’ Use of Financial Reports? (Prize amount: up to $8K)

The 80-20 rule says that 80% of outcomes result from 20% of all causes. Applied to financial reporting, this could mean that some fraction of the information contained in the financial report satisfies the vast majority of the questions professional analysts (e.g., those who preform analysis as/for bond market participants) have about a local government. GFOA wants to know: what are the most common questions professional analysts have about local governments and what information are they most commonly using from financial reports? We also want to know the extent to which the most commonly used information satisfies the financial analysts total informational needs? Or put another way, what percent of the outcome (financial analysis complete) results from the most commonly used information?

Question 2

What is the Cost of Compliance with GAAP Accounting and Reporting Standards? (Contract amount: up to $8K)

GAAP accounting standards often require governments to collect, prepare, and report information that they otherwise would not. This adds a new or marginal cost to finance administration that would otherwise not exist. GFOA wants to know: What is the marginal cost to comply with new reporting standards, including staff time, consulting time (including external auditors and other accounting service providers), software and any other relevant costs? We are interested in total costs, include staff time, software upgrades, and consultant support, after the standard is “live”. We are also interested in seeing data from a random selection of governments or at least reasonably representative of the range of capabilities that local governments have to implement new standards.

Question 3

What Does the Public Really Want to Know about Public Finance? (Contract amount: up to $8K)

Financial transparency is important but is often undertaken without a firm understanding of what the public most wants to know about their government’s finances. GFOA wants to know: We want to know what information about public finances would do the most to reduce the public’s uncertainty about the trustworthiness of their local government as stewards of their tax dollars. What do citizens/taxpayers want to know about local government finance? How do they define accountability for the use of their tax dollars?

Question 4

Do Financial Reports Impact Policy Making? (Contract amount: up to $8K)

Elected officials need to know about the financial condition of their governments. GFOA wants to know: We want to know what information about public finances gives elected officials the most confidence that they are succeeding in their role of stewards of public finances. What do elected officials want to know about local government finance? How do they define accountability for the use public funds?

If you have any questions or would like to offer support for the production of these articles please feel free to reach out to: kwedberg@gfoa.org.