Why should Municipalities adopt XBRL?
Rachel Carpenter, CEO of Intrinio, recently highlighted the many benefits proper XBRL filing implementation would offer US municipalities.
In early 2020, Florida became the first state to mandate digital XBRL filings for municipalities. With this, Florida set out on the path to accessible, accurate financial information. If successfully implemented the result could lower the cost of capital and ease investment – with increased infrastructure following. Instant, structured municipal data would allow for innovative analytics tools, and better data could result in a more efficient government making more informed decisions.
Carpenter is concerned, however, that the bill fell short – with the State of Florida itself not mandated to file in XBRL, and an advisory council recommended but struck from the bill, she is concerned that XBRL implementation in Florida will be ineffective. To truly reap the rewards and cost-savings of digital, structured data states need to back up good intentions with expert help and a sense of urgency. Data standardisation and digital reporting initiatives are key to ensuring state and local governments are ready for the 21st century, and as such, should be fully embraced.
Read Carpenter’s article here.