Wholistic Departmentalization: Stand-Alone Financial Reporting for Government Departments

Many recent GFR accounting articles have focused on reporting by primary governments and the component units that are incorporated into their financial reporting entities, including activity within those reporting entities.

Sometimes, though, stand-alone financial reporting by a program or department of a government is desirable. Unlike component units that are legally separate entities for which a primary government is financially accountable, a department is simply a part of a government. Departmental reports can bolster financial accountability and transparency by providing information about effectiveness and efficiency in the delivery of specific public services, and about the use of resources generated by specific activities. Financial reporting by departments may be particularly valuable when the revenues of a government department are pledged as the primary or sole support for debt service on bonds. This article explains some of the factors that may influence the choice and content of departmental reports.

• Publication date: August 2024
• Authors: Michele Mark Levine, Susannah Filipovic, and Todd Buikema, CPA