The audited Annual Comprehensive Financial Reports (ACFRs) are the most important and reliable information for understanding governmental entities' fiscal health. These ACFRs are currently provided as PDF documents, severely limiting their accessibility, comparability, and usefulness for many stakeholders. Based on the eXtensible Business Reporting Language (XBRL), an open standard will modernize and digitize municipal financial reporting. It will facilitate better information sharing with the public, state, and others.
A consortium, including the University of Michigan, is exploring whether a digital financial data standard for local government reporting entities can create transparency and prevent future financial crises. Consequently, an initial digital standard, called a taxonomy, was developed. It covers seven key financial statements, four associated footnotes from the ACFR, and two mandatory Michigan-specific reports by local entities.
The consortium, which includes the Center for Local, State, and Urban Policy at the Gerald R. Ford School of Public Policy and XBRL US, in partnership with the city of Flint, seeks input from the public and concerned entities about this initial digital financial data standard for local government reporting.
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