Financial Reporting Review of Local Government Financial Reporting Review of Local Government Introduction The Government Accounting Standards Board (GASB) has established accountability as the pillar of financial reporting not only for governments, but also financial institutions. GABS lOMoAR cPSD|3013804 2 believes that accountability is an important aspect of financial operations. Accountability involves both budgetary and financial compliance. Government entities are bodies that are entrusted with taxpayers’ money to use it with honesty and integrity. Communities can receive fire-fighters’ services, security services, among other services as a result of the high accountability ensured when dealing with tax-payers’ money. Nonetheless, it is important to take into consideration the views of the public on how their tax is being utilized. In essence, this is achieved by letting the public understand the role of Comprehensive Annual Financial Report (CAFR) in improving accountability, among other roles (Winston-Salem, 2021). Moreover, it is important to note that a government entity is expected to take into consideration the expenditures incurred in every financial year via specific accounting standards as required by the Governmental Accounting Standards Board. In this light, the essay seeks to explore the Comprehensive Annual Financial Report (CAFR) for the elements of the CAFR, and how such elements are incorporated by local governments. In this respect, it will compare and contrast the Comprehensive Annual Financial Report for two government entities (the town of Cary North Carolina and Winston Salem). Comparing and Contrasting the CAFR of Winston Salem and the Town of Cary Promoting accountability and fiscal transparency remains a critical element in ensuring effective policy-making and management of public taxes. In the United States, like other parts of industrialized world, has engaged in concerted efforts to develop a set of internationally accepted standards for fiscal transparency and to monitor and promote the implementation of those standards at the national level. Such efforts have also seen steady improvement in the comprehensiveness, timeliness, and quality of public financial reporting in various regions across lOMoAR cPSD|3013804 3 the country. Despite the advances, understanding how the government is managing public finances is important as it helps to minimize gaps and inconsistencies in fiscal transparency standards, delays in discrepancies in different states’ adherence to such standards, and lack of accountability. As such, in the United States, the government is ensuring that different entities make their financial reporting through a comprehensive financial report (Town of Cary, 2021). Therefore, a comparison of the comprehensive annual financial report for both Winston Salem and the town of Cary would suffice. Against this backdrop, it is imperative to mention that the two countries engage in regular publication of their financial reports. In their publications, they had the introductory section of the report, the financial part, and the statistical sections. Although the reports bear almost the same method of publication, the main difference lies with the contents as they are totally different entities. In terms of the audit process, it is important to say that the audit process of Winston Salem was largely conducted with an independent auditor, and in this light, it is right to state that the auditing procedure was undertaken following generally accepted auditing policies in the United States. Such policies have resulted into the two cities’ strong financial position, which is shown by the highest credit rating attainable in the national bond markets. Moreover, the use of accounting principles within the two regions has contributed towards realistic long-range planning, expansion of self-supporting enterprises within the government, productive management of revenue and cash resources, and prudent adoption of debts, which guarantee fair operating outcomes. In Winston, the unassigned general fund balance represents approximately 14.85% of the entire budgeted expenditures for fiscal year 2022 (Winston-Salem, 2021). On the other hand, Cary remains in excellent financial health. The region has capital resources, expense management culture, revenue capacity, and has a culture that provides the Council with technical