NEWS RELEASE 12/13/02

Governmental Accounting Standards Board Issues Exposure Draft on Budgetary Comparisons That Improves Transparency

Norwalk, CT, December 13, 2002—The Governmental Accounting Standards Board (GASB) has published an Exposure Draft, Budgetary Comparison Schedules—Perspective Differences, that clarifies existing guidance on budgetary comparisons in GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. This amendment would apply to governments with budgetary structures that prevent them from being able to present budgetary comparison information for their general funds and major special revenue funds, as currently required by Statement 34. The comment period concludes on February 28, 2003.

The proposed Statement would have governments present budgetary comparison schedules as required supplementary information based on the fund, organization or program structure that the government uses for its legally adopted budget. By and large, governments should present budgetary comparisons for the activities that are reported in the general fund and each major special revenue fund.

The accounting change would be implemented simultaneously with Statement 34. For governments that have already implemented Statement 34, the requirements would be effective for periods beginning after June 15, 2002. The Exposure Draft may be obtained by telephoning the GASB Order Department at 800-748-0659.

About the Governmental Accounting Standards Board

The GASB is the independent, not-for-profit organization formed in 1984 that establishes and improves financial accounting and reporting standards for state and local governments. Its seven members are drawn from the Board's diverse constituency, including preparers and auditors of government financial statements, users of those statements and members of the academic community. More information about the GASB can be found at its website www.gasb.org.

Governmental Accounting Standards Board

Improving governmental accountability through better financial reporting