The Importance of Transparent Reporting in Government Finance

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Transparency in government finance is essential for building public trust, ensuring accountability, and promoting efficient use of resources. As government entities manage taxpayer funds, clear and accurate financial reporting helps stakeholders—including citizens, policymakers, and oversight agencies—understand how money is allocated and spent. 

 

Why Transparent Reporting Matters 

Transparent financial reporting in government provides multiple benefits, including: 

  • Public Trust and Accountability – When financial information is readily available and easy to understand, citizens are more likely to trust that their tax dollars are being used effectively. 
  • Improved Decision-Making – Policymakers rely on accurate financial data to make informed decisions about budgets, funding allocations, and long-term financial planning. 
  • Regulatory Compliance – Government agencies must adhere to strict accounting standards and regulations, such as Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) guidelines. 
  • Fraud Prevention – Transparent reporting reduces the risk of financial mismanagement, fraud, and corruption by ensuring financial records are regularly reviewed and audited. 

 

Key Components of Transparent Government Finance 

  1. Clear and Accessible Financial Statements

Government entities should provide comprehensive financial statements that are easy to access and understand. This includes annual budgets, expenditure reports, and audit results. 

  1. Regular Audits and Compliance Checks

Independent audits and compliance reviews help verify the accuracy of financial statements and identify areas for improvement. 

  1. Open Budgeting Processes

Allowing public input and making budgetary decisions transparent ensures that financial planning aligns with community needs and priorities. 

  1. Use of Digital Tools for Reporting

Modern financial reporting software and dashboards can improve data visualization and accessibility, making financial information more user-friendly for the public. 

 

How Brady Martz Can Help 

At Brady Martz, we specialize in helping government entities enhance transparency in financial reporting. Our team provides expert guidance on compliance, auditing, and financial management to ensure that public funds are used effectively and responsibly. 

By prioritizing transparency, government agencies can build public confidence, strengthen financial integrity, and foster long-term economic stability. 

Contact Brady Martz today to learn how we can support your government finance reporting needs. 

 

Cybersecurity in the Public Sector: Protecting Government Data and Infrastructure

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In an increasingly digital world, government entities face growing cybersecurity threats that put sensitive data and critical infrastructure at risk. Cyberattacks targeting the public sector have risen sharply in recent years, making it imperative for agencies to adopt robust security measures to safeguard their systems. From local municipalities to federal organizations, proactive cybersecurity strategies can help mitigate risks and ensure the integrity of government operations. 

 

The Rising Threat of Cyberattacks in Government 

Public sector organizations are prime targets for cybercriminals due to the vast amounts of sensitive data they manage, including citizens’ personal information, financial records, and classified government intelligence. According to the Cybersecurity and Infrastructure Security Agency (CISA), ransomware attacks, phishing schemes, and insider threats remain some of the most prevalent risks facing government institutions today. 

A successful cyberattack can have devastating consequences, including data breaches, operational disruptions, and financial losses. Additionally, compromised infrastructure can impact public services such as emergency response systems, law enforcement operations, and healthcare services. 

 

Key Cybersecurity Challenges for Government Entities 

Government agencies face unique challenges when it comes to cybersecurity, including: 

  • Aging IT Infrastructure – Many government systems rely on outdated technology, making them more vulnerable to cyber threats. 
  • Budget Constraints – Limited funding can hinder the ability to invest in the latest cybersecurity tools and hire skilled professionals. 
  • Compliance and Regulations – Agencies must adhere to strict regulatory frameworks, such as the Federal Information Security Modernization Act (FISMA) and the National Institute of Standards and Technology (NIST) guidelines. 
  • Increased Attack Surface – The shift to remote work and cloud-based services has expanded the number of potential entry points for cybercriminals. 

 

Best Practices for Strengthening Cybersecurity in the Public Sector 

To combat these challenges, government entities must implement comprehensive cybersecurity strategies, including: 

  1. Conduct Regular Risk Assessments

Understanding vulnerabilities is the first step in creating a strong defense. Regular risk assessments help identify weaknesses and allow agencies to prioritize security improvements. 

  1. Enhance Employee Training and Awareness

Human error remains one of the leading causes of cyber incidents. Providing ongoing cybersecurity training for government employees can reduce the risk of phishing attacks, social engineering tactics, and accidental data leaks. 

  1. Implement Multi-Factor Authentication (MFA)

Strengthening access controls with MFA adds an extra layer of security, making it more difficult for unauthorized users to breach government systems. 

  1. Keep Software and Systems Updated

Regularly updating software, patching vulnerabilities, and replacing outdated technology are essential steps in preventing cyberattacks. 

  1. Develop a Comprehensive Incident Response Plan

Having a well-defined response plan in place ensures that agencies can quickly contain and mitigate damage in the event of a cybersecurity breach. 

  1. Partner with Cybersecurity Experts

Government entities can benefit from working with cybersecurity professionals who provide expertise in risk management, compliance, and threat mitigation strategies. 

 

Protecting government data and infrastructure is not just an IT concern—it’s a public trust responsibility. By investing in cybersecurity, government agencies can ensure the safety, security, and resilience of their operations in an ever-changing digital landscape. 

Contact Brady Martz today to learn how we can support your cybersecurity needs in the public sector. 

Key Trends in Public Administration for 2025

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As we step into January 2025, government agencies are gearing up for the opportunities and challenges that this new year will bring. With emerging regulations, evolving public expectations, and continued technological advancements, it’s crucial for agencies to remain proactive and stay ahead of the curve. The beginning of the year presents an ideal time to assess current operations, address compliance requirements, and set strategic goals for the future. At Brady Martz, we’re here to help government entities navigate these shifts and lay a strong foundation for success in 2025.

With fiscal year-end approaching for many agencies and critical deadlines looming for financial reporting and grant compliance, now is the time to focus on preparation. Below, we highlight key trends government agencies should be ready for as they enter 2025.

1. Managing 2024 Funding and Grant Compliance

The continued impact of federal funding through programs such as the Infrastructure Investment and Jobs Act (IIJA) and ongoing allocations from pandemic-related relief initiatives will require agencies to ramp up their reporting and compliance efforts early in 2025.

Key Focus Areas: Ensuring accurate tracking and reporting of federal grants, particularly with Single Audit deadlines coming up in the first half of 2025.
Why It Matters: Increased federal oversight requires airtight processes to avoid compliance risks.

How to Prepare:

  • Review your Schedule of Expenditures of Federal Awards (SEFA).
  • Collaborate with auditors to identify and resolve potential compliance gaps before reporting deadlines.

2. GASB Standards Updates Taking Effect in 2025

Government agencies need to stay ahead of updates from the Governmental Accounting Standards Board (GASB). The most impactful updates include:

  • GASB Statement No. 101 – Effective for fiscal years starting after January 1, 2025, this standard addresses compensated absences, requiring improved recognition and measurement of leave liabilities.
  • Implementation of Prior Pronouncements – Agencies finalizing processes for GASB 96 (subscription-based IT agreements) will need to refine reporting and disclosures heading into 2025.

How to Prepare:

  • Review how GASB 101 will impact your current leave accruals and ensure compliance.
  • Evaluate any subscription-based IT arrangements to ensure compliance with GASB 96.

3. Cybersecurity Threats and Federal Requirements

With cyberattacks on government systems increasing, cybersecurity remains a top priority in 2025. Additionally, federal and state mandates are ramping up requirements around cybersecurity protections.

Key Event: The Cybersecurity and Infrastructure Security Agency (CISA) is expected to release additional guidance for state and local agencies in early 2025.
Why It Matters: Agencies managing sensitive data—such as financial records and public services—face significant risks without proactive cybersecurity measures.

How to Prepare:

  • Conduct an end-of-year cybersecurity audit to identify vulnerabilities.
  • Develop a 2025 cybersecurity plan, including updated incident response protocols and employee training.

4. Leveraging AI and Technology for Financial Reporting

In 2024, there was a significant uptick in the adoption of artificial intelligence (AI) and automation tools to streamline public administration tasks. Heading into 2025:

  • AI in Financial Management: Agencies are increasingly using AI to automate budgeting, forecasting, and financial reconciliation processes.
  • Data-Driven Decisions: AI tools will improve the ability to analyze data for better resource allocation and program performance evaluation.

How to Prepare:

  • Explore tools that can automate manual processes in financial reporting to free up staff for higher-level tasks.
  • Invest in training to help teams adapt to and leverage new technologies effectively.

5. Preparing for Workforce Transitions

Many government agencies are facing staffing challenges due to retirements, talent shortages, and evolving workforce expectations. In 2025, agencies will need to prioritize:

  • Succession Planning: Preparing the next generation of leadership to ensure smooth transitions.
  • Recruitment Strategies: Offering competitive salaries, flexible work arrangements, and training opportunities to attract top talent.

How to Prepare:

  • Conduct workforce assessments to identify gaps in leadership and key roles.
  • Create professional development programs to retain and upskill current employees.

6. Increasing Demand for Financial Transparency

Public trust and stakeholder expectations for transparency continue to grow. Heading into 2025, government agencies must:

  • Provide timely and clear reporting on the use of public funds.
  • Implement interactive tools and dashboards that allow constituents to access financial and operational data.

How to Prepare:

  • Update reporting systems to produce clear, user-friendly reports.
  • Collaborate with financial professionals to ensure accuracy and transparency in year-end reporting.

How Brady Martz Can Help

As your trusted advisors, Brady Martz is committed to helping government agencies navigate these key trends and prepare for a successful 2025. Whether you need assistance with year-end audits, GASB compliance, or technology implementation, our Government Niche team has the expertise to provide tailored solutions that ensure accuracy, transparency, and efficiency.

Our Services Include:

  • Audit and Assurance – Ensuring compliance with GASB standards and federal grant requirements.
  • Strategic Consulting – Helping agencies adopt technology, implement cybersecurity measures, and optimize operations.
  • Financial Reporting Support – Assisting with year-end financial statements, SEFA preparation, and transparency initiatives.

Start 2025 Strong with Brady Martz

The new year brings both challenges and opportunities for government agencies. By preparing now, you can ensure your organization is ready to meet deadlines, adopt new standards, and thrive in 2025.

If your agency needs support, contact the Brady Martz Government Niche team today. We’re here to help you stay ahead of the trends and serve your community with confidence.

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Visit our Government Services page to learn more about how Brady Martz can help your agency prepare for the future.

Navigating Government Budget Cuts: Strategies for Fiscal Responsibility in 2025

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As we step into 2025, many government agencies are faced with the challenging task of managing budget cuts while maintaining essential services. Whether due to shifting economic conditions, changes in federal or state funding, or a need for fiscal discipline, agencies must find ways to optimize their resources without compromising their ability to serve the public.

In a time of budget reductions, it’s crucial for government entities to embrace fiscal responsibility, ensure efficiency in their operations, and prioritize key initiatives. At Brady Martz, we understand the pressures that come with budget cuts, and we’re here to provide guidance on how agencies can navigate these challenges and remain effective stewards of taxpayer dollars.

Here are some practical strategies for government agencies to implement in 2025 to manage budget cuts and maintain fiscal responsibility.

1. Conduct a Comprehensive Budget Review and Reforecasting

The first step in managing budget cuts is to conduct a thorough review of your agency’s existing budget. This review should focus on identifying areas of inefficiency, redundancies, and non-essential expenses that can be reduced or eliminated. A comprehensive budget reforecast will also help agencies adjust to any changes in funding or revenue projections.

Key Actions:

  • Assess your agency’s major expenses and identify areas for cost-saving without impacting core services.
  • Collaborate with department heads to ensure that essential services remain adequately funded while non-essential programs are scaled back.
  • Use data analytics to track spending patterns and make informed decisions for the upcoming fiscal year.

2. Prioritize Core Services and Programs

In times of budget cuts, it’s important to focus on what matters most—ensuring that critical services and programs continue to meet the needs of the public. Prioritizing the most essential services will help agencies make difficult decisions about where to allocate limited resources.

Key Actions:

  • Identify programs that directly impact public safety, health, education, and welfare, and ensure they receive priority funding.
  • Assess programs and services that can be scaled back, outsourced, or eliminated without compromising their overall impact.
  • Communicate with stakeholders and the public about the necessity of these prioritization decisions, ensuring transparency in the process.

3. Embrace Technology to Increase Efficiency

One of the most effective ways to combat budget cuts is to leverage technology to streamline operations and improve efficiency. Many government agencies are already adopting digital solutions to enhance their internal processes, from financial management to citizen engagement.

Key Actions:

  • Implement automation tools for repetitive administrative tasks to free up resources for more critical functions.
  • Invest in cloud-based solutions to reduce the costs associated with on-premise IT infrastructure and improve flexibility.
  • Use data analytics to enhance decision-making and optimize resource allocation across departments.

4. Engage in Collaboration and Shared Services

Collaboration and shared services can provide significant cost savings while ensuring that essential services are still delivered. By working with other local or state agencies, governments can pool resources, share expertise, and reduce the need for duplicative efforts.

Key Actions:

  • Explore opportunities to collaborate with neighboring agencies or municipalities on joint projects, such as purchasing, maintenance, or shared infrastructure.
  • Establish intergovernmental agreements for services that can be shared, such as technology support, human resources, or legal services.
  • Focus on building partnerships with nonprofit organizations and community groups to expand service delivery without increasing costs.

5. Enhance Transparency and Accountability

During times of budget cuts, transparency and accountability are essential to maintaining public trust. Government agencies must demonstrate their commitment to responsible fiscal management by clearly communicating how budget reductions will be handled and how funds are being allocated.

Key Actions:

  • Regularly update the public on budget adjustments and financial performance through easily accessible reports, dashboards, and town hall meetings.
  • Involve citizens in the budgeting process by seeking input on program prioritization and cost-saving measures.
  • Maintain open channels of communication with employees to ensure they understand the rationale behind budget cuts and the steps being taken to minimize impact.

6. Monitor and Evaluate Financial Performance Regularly

Ongoing financial monitoring is crucial to ensure that your agency is staying on track with its budget goals. Regular evaluations of financial performance help identify any discrepancies early on and allow for course corrections before issues become more significant.

Key Actions:

  • Conduct monthly or quarterly budget reviews to track spending and adjust projections as necessary.
  • Use performance metrics to evaluate program effectiveness and ensure that resources are being allocated to achieve the best outcomes.
  • Engage external auditors to assess financial statements and ensure compliance with accounting standards and budgetary regulations.

How Brady Martz Can Help

At Brady Martz, our Government Niche team is well-versed in the unique financial challenges faced by government agencies. We can assist with budgeting strategies, compliance, and efficiency measures to help your agency maintain fiscal responsibility and optimize resources during times of budget cuts.

Our Services Include:

  • Budgeting and Forecasting – Helping agencies develop and revise budgets based on current financial realities and future projections.
  • Audit and Assurance – Providing independent audits and reviews to ensure your agency is adhering to best practices and legal requirements.
  • Financial Consulting – Offering advice on technology implementation, process improvements, and shared services for cost-saving and efficiency.
  • Transparency and Reporting – Assisting with the development of clear, understandable financial reports for public communication.

Conclusion

Navigating budget cuts is never easy, but with careful planning and a commitment to fiscal responsibility, government agencies can continue to provide vital services to their communities while remaining financially sustainable. By embracing technology, prioritizing core services, and ensuring transparency, agencies can manage budget reductions effectively and position themselves for success in 2025.

If your agency needs support with navigating budget cuts or optimizing financial operations, contact the Brady Martz Government Niche team today. We’re here to help you achieve fiscal responsibility and deliver results for your community.

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Visit our Government Industry page to learn more about how Brady Martz can help your agency navigate budget challenges and plan for a sustainable future.

GASB 101: Understanding the New Standard for Accrued Compensated Absences

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The December 31, 2024, reporting deadline for GASB Statement No. 101 has passed, marking an important start to the new year. For government agencies preparing for audits and financial reporting in 2025, now is the perfect time to focus on ensuring compliance and building a strong foundation for success in the year ahead.

GASB Statement No. 101, issued by the Governmental Accounting Standards Board, addresses Compensated Absences and officially took effect for reporting periods beginning after December 15, 2023. This new standard introduces critical updates to how liabilities for employees’ earned leave are recognized and measured.

At Brady Martz, we understand the complexities of implementing new standards. While the December 31, 2024, deadline marked the first reporting cycle under GASB 101, the new year provides an opportunity to refine processes, address challenges, and establish strong compliance practices for the future.

What is GASB 101?

GASB 101 replaces previous guidance under GASB Statement No. 16, offering a clearer and more consistent approach to measuring liabilities for compensated absences, including:

  • Vacation leave
  • Sick leave
  • Paid time off (PTO)
  • Other forms of compensated absences

The key improvement is GASB 101’s “single comprehensive model,” which ensures all types of leave are measured uniformly.

Key Changes Under GASB 101

Government entities must focus on the following:

1. Recognition of a Liability:

  • A liability is recorded for compensated absences when earned by an employee and unused as of the reporting date.
  • This applies to unconditional leave (available regardless of conditions) and conditional leave (subject to specific criteria, like sick leave).

2. Measurement of the Liability:

  • The liability is measured using the employee’s current pay rate at the financial statement date.
  • Factors like leave caps and forfeiture policies must also be considered.

3. Streamlined Approach:

  • GASB 101 unifies the reporting process across all leave types, minimizing inconsistencies.
  • The model applies to leave accrued under individual policies or collective bargaining agreements.

4. Enhanced Disclosures:

  • Financial statements must clearly disclose information about compensated absences, including leave types, measurement methods, and key assumptions.

Why It Matters in 2025

While the December 31, 2024, reporting deadline has passed, 2025 audits and financial reporting will reflect the first full year under GASB 101 compliance. Agencies must ensure proper implementation to avoid reporting errors and compliance issues.

Key reasons to act now:

  • GASB 101 may increase reported liabilities depending on current leave accrual practices.
  • Auditors will expect robust tracking systems and processes that align with the new standard.
  • Proactive measures can simplify year-end reporting and reduce last-minute adjustments.

How to Get an Early Start on Compliance

Use the early months of 2025 to strengthen your processes and ensure long-term compliance:

1. Evaluate Policies and Agreements:
Review leave policies and collective bargaining agreements to fully understand how compensated absences are earned, accrued, and forfeited.

2. Assess Leave Tracking Systems:
Ensure systems can accurately track leave balances, including conditional leave that requires eligibility adjustments.

3. Analyze Financial Impact:
Work with financial experts to reassess liabilities under GASB 101 and determine any necessary adjustments for upcoming reports.

4. Update Reporting Processes:
Enhance financial statement disclosures to meet GASB 101 requirements.

5. Collaborate with Auditors:
Engage auditors early to confirm your compliance approach and address potential challenges before year-end.

Brady Martz: Your Partner in Compliance

At Brady Martz, we specialize in helping government agencies navigate complex accounting standards like GASB 101. Our Government Niche team offers tailored support for:

  • Policy and system evaluations
  • Liability calculations and impact analysis
  • Enhanced reporting and disclosures
  • Audit preparation and compliance reviews

Start 2025 on the Right Foot

The new year is the perfect time to refine your processes and ensure compliance under GASB 101. By taking proactive steps now, your agency can approach 2025 audits with confidence.

If you need assistance, contact the Brady Martz Government Niche team. We’re here to guide you every step of the way.

For more information, visit our Government Services page or reach out directly to discuss your agency’s needs.

Government Accountability and Transparency: How to Build Public Trust Through Reporting

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In today’s rapidly evolving landscape, public trust remains at the heart of effective government operations. As we kick off 2025, the focus on accountability and transparency in public sector reporting has never been greater. As agencies prepare their financial statements and reports for the year ahead, now is the perfect time to strengthen practices that enhance public confidence and demonstrate responsible use of taxpayer dollars.

At Brady Martz, we understand the challenges government entities face when balancing compliance, transparency, and resource management. Below, we outline key steps to improve reporting, foster accountability, and build stronger relationships with the communities you serve.

Why Accountability and Transparency Matter

In an era marked by increasing public scrutiny and demand for open government, transparency is essential for:

  • Demonstrating responsible fiscal management
  • Reinforcing public confidence in government operations
  • Meeting evolving regulatory requirements and audit standards

Government agencies are accountable for ensuring every dollar is spent appropriately, and clear reporting allows stakeholders to see how decisions align with public priorities. As we step into 2025, timely, accurate, and accessible reporting will set a strong tone for the year ahead.

Key Areas of Focus for Transparent Reporting

Comprehensive Financial Statements
Accurate and detailed financial reporting is the foundation of transparency. Agencies should ensure their year-end reports provide:

  • Clear breakdowns of revenues, expenditures, and outstanding liabilities
  • Explanations for significant variances and changes in financial position
  • Compliance with updated standards, such as GASB 101 on compensated absences

Timely submission of financial statements and audits helps instill confidence in your processes, ensuring a strong start to the year.

Performance Metrics and Reporting
Beyond financial statements, the public is increasingly interested in performance outcomes. Agencies can enhance trust by:

  • Reporting on key performance indicators (KPIs) tied to public programs and initiatives
  • Sharing measurable results that highlight progress toward strategic goals
  • Using plain language to make performance reports more accessible to all stakeholders

Leveraging Technology for Open Data
Digital platforms allow governments to share data in real-time, making information more transparent and easier to access. Agencies can adopt:

  • Open data portals to share budgets, spending, and project updates
  • User-friendly dashboards to visualize financial and operational performance
  • Secure systems that maintain data integrity while increasing transparency

Stakeholder Engagement
Trust is built through open communication. Governments can strengthen relationships with their communities by:

  • Hosting public meetings or webinars to discuss financial reports and budgets
  • Inviting feedback on proposed projects and fiscal priorities
  • Providing annual summaries of key achievements and challenges

Adherence to Compliance and Audit Standards
Regular audits and adherence to evolving accounting standards are critical to accountability. Agencies should stay current with regulations, including GASB updates, and ensure:

  • Audit readiness with accurate, well-documented financial records
  • Transparent disclosures on liabilities, risks, and operational challenges

Looking Ahead to 2025: Prioritizing Public Trust

Government agencies face increasing pressure to operate efficiently, accountably, and transparently. Heading into 2025, organizations that prioritize clear communication, reliable reporting, and proactive community engagement will be better positioned to foster public trust and confidence.

At Brady Martz, we specialize in helping government entities meet their accountability and transparency goals through expert financial reporting, audit preparation, and strategic guidance. Whether you’re finalizing year-end reports or planning for the year ahead, our Government Niche team is ready to support your success.

Build Trust Through Better Reporting

Transparency isn’t just about compliance; it’s about building meaningful connections with the communities you serve. As you embark on 2025, let Brady Martz help you develop reporting practices that ensure accountability, demonstrate stewardship, and strengthen public trust.

To learn more about our services, visit our Government Services page or contact us today.