North Pima News

Arizona ranks among the top 20 states in the country for fiscal transparency, according to recent analysis by Truth in Accounting (TIA) for its second annual financial transparency score report.  

The Center Square reports Arizona received a grade of 84, 19th nationally, from the nonprofit, which based grades on such criteria as accessibility, searchability, if the states used an outside auditor, the auditor’s opinion, timeliness of the report, percentage of off-balance sheet liabilities, pension data timing and deferred items. The state ranks one ahead of Nevada and one behind Arkansas. Alaska rates No. 1

 “Arizona scores relatively well on Truth in Accounting's transparency analysis,” said TIA’s director of research Bill Bergman. “But the state still has room for improvement. For example, it is among the slower states to deliver its audited annual financial report, and a practice of relying on dated pension valuation dates that don't align with the fiscal year tends to muddy the waters.”

TIA founder and CEO Sheila Weinberg added in a statement, “State governments have historically struggled to provide the public with meaningful information about their financial health. We have seen reporting efforts hampered in the past by conflicts of interest, out of date information, and slow publication. This year’s analysis highlights several states with performance that has run counter to those negative stereotypes.”

In the case of Arizona, TIA noted the state improved by 41 percent from the previous fiscal year by adopting such standards as the generally accepted accounting principles (GAAP), which require that governments disclose pension and other post-employment benefits as part of their balance sheet.