States seek involvement in FDTA design
The Public Finance Network, representing US state and local governments, government entities, and issuers of municipal securities, has requested that its members be involved and provide input in the implementation of the Financial Data Transparency Act (FDTA).
The FDTA, which passed the senate in December 2022, requires local and state governments to implement machine-readable reporting, potentially resulting in significant changes to how state and municipal governments prepare and submit their financial statements.
The Public Finance Network argue that thorough understanding of public sector financial reporting from the get-go is essential for developing machine-readable standards that work for this sector. They highlight that the sector involves varied entities reporting different types of information, is affected by differing state laws, and that municipal securities issuers are also extensive and expansive in needs. Understanding the nuances in the sector will help the US Securities and Exchange Commission (SEC) develop useful standards that enable efficient, transparent local government financial reporting.
We agree — a careful, considered implementation of any new reporting framework will require working collaboratively with all stakeholders across the reporting ecosystem to design effective machine-readable reporting standards and processes.
Read more here.