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Review Says GASB Statement on Fund Balance Reporting Achieves Purpose

A Post-Implementation Review (“PIR”) of the expected benefits of Governmental Accounting Standards Board (“GASB”) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, has determined that the standard achieves its purpose. In a report this week, the PIR team reached the following conclusions on the 2009-issued statement:

  • Statement No. 54 resolved the key issues underlying its need, such as introducing clearer fund balance classifications and fund type definitions. Despite some reported difficulty in differentiating between committed and assigned fund balanced, the statement is viewed as an improvement from previous literature.
  • The statement offers financial statement users with beneficial information.
  • Statement No. 54 allows fund balance and governmental fund type information to be disclosed consistently.
  • Financial and operating practice changes caused by Statement No. 54 were not major or unexpected.
  • No substantial unanticipated consequences are likely due to the adoption of the statement.
  • Implementation and ongoing application costs related to Statement No. 54 meet the GASB’s expectations.

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