August 1, 2021

Why do Indiana local officials need to learn about GAAP?

Indiana now requires some cities, towns, and counties to publish financial statements in accordance with GAAP (Generally Accepted Accounting Principles). Other units may also benefit by preparing GAAP statements on a voluntary basis. IC 5-1-11.5-4* requires GAAP financial reporting for large counties, cities, and towns that issue bonds. This requirement applies to counties with populations in excess of 100,000 and cities and towns with populations greater than 75,000.  How does GAAP differ from the standard Indiana accounting practices that were developed over the years by fiscal officers and the State Board of Accounts?  The standard system focuses on appropriations and claims only one year at a time. Little attention is directed at the future. GAAP builds on that system by […]