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.