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Improving government financial reporting - Ernst & Young - United States

Improving government financial reporting

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A transparent government that links what is spent with what is achieved is the ultimate aim for policy-makers and citizens alike.

Discover why the accountability pyramid is a fresh way of setting out a citizen-centric view of government.

Citizens are holding governments accountable to make the most of tighter budgets. Governments, in turn, are using new methods to prove accountability.

Enhancements in reporting, information technology, data accessibility and management practices have laid the groundwork for a fundamental change in the culture of government accountability.

Building on that groundwork, we worked with the Association of Government Accountants (AGA) to promote the accountability pyramid below as a valuable tool.

Accountability Pyramid

Accountability pyramid

Base levels: The base of the pyramid encompasses the raw financial data produced by government agencies. Challenges at this level include ensuring that the correct information is gathered and that it’s accurate and standardized so it can be aggregated and later pulled into reports and information usable by the public.

Middle levels: The middle of the pyramid is the level at which data begins to be refined into usable information. As such, concerns about accessibility begin to emerge, while issues of data standardization, methodology and accuracy become even more urgent. The financial information traditionally provided by the government to the public has been posited by many to not be truly usable by the public. For this to change, information and data must be presented from a “citizen-centric” perspective.

Top levels: The top of the pyramid is the point at which citizens interact directly with government, seeking relevant, clear information. This is where the work done at the previous two levels comes to fruition in transparent, usable reports. To engage the public, the information must be important to them.

Finally, keep in mind that greater transparency is the theme that needs to underpin all attempts at financial reform in government. A transparent government that links what is spent with what is achieved is the ultimate aim for policy-makers and citizens alike.

Let the accountability pyramid guide your financial data collection and distribution to improve government transparency.

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