This disconnect is precisely why Truth in Accounting's work is so essential—and why education reform is a crucial part of the long game. If we want financial transparency in government, we need to teach future accountants, journalists, and citizens how the system actually works.
Despite the critical role state, local, and federal governments play in managing trillions of taxpayer dollars, most accounting students graduate without ever learning how public finances are actually reported.
While private companies follow accounting rules set by the Financial Accounting Standards Board (FASB), governments operate under entirely different frameworks—GASB (Governmental Accounting Standards Board) for state and local governments, and FASAB (Federal Accounting Standards Advisory Board) for federal agencies. These rules govern everything from pension reporting to how a “balanced budget” is defined. And yet, in most college and university accounting programs, they’re barely mentioned.
This education gap has real consequences:
Even the CPA exam, the gold standard for accounting licensure, only includes a small portion (around 5–15%) of government and nonprofit accounting in one of its four sections, the FAR. That’s not nearly enough to cover the complexities and long-term risks embedded in government financial reports.
This knowledge gap also fuels a dangerous myth: that state and local governments operate with sound, balanced budgets. In reality, many balance their books through accounting gimmicks, borrowing, or by deferring critical payments, like pension contributions, to future generations.
If we want public officials to manage finances responsibly—and for citizens and professionals to hold them accountable—we must prioritize government accounting education at both undergraduate and graduate levels. It's not a partisan issue; it's a public integrity issue.
As Sheila Weinberg, Founder and CEO of Truth in Accounting, puts it:
“If the government can’t count honestly, then we can’t count on the government.”
It’s time to close the education gap—and demand transparency from the ground up, OR simply have governments at all levels follow the same Generally Accepted Accounting Principles (GAAP) as corporations.