In February, APGA, as a part of the Public Finance Network (PFN), wrote a letter to Treasury Secretary Janet Yellen and Securities and Exchange Commission (SEC) Chairman Gary Gensler. This communication expressed the need for coordination, early and often, as federal departments and regulators implement the Financial Data Transparency Act (FDTA), which President Biden signed in December 2022.
The FDTA requires pertinent government offices to develop machine readable data standards for the public sector, and any action will affect the way governments, entities, authorities, and all municipal securities issuers prepare their information that is submitted to the Municipal Securities Rulemaking Board (MSRB). As APGA members know, financial statements in the state and local government sector are complex and present a variety of financial information that may differ due to the type of entity preparing the details, as well as the variability of state laws and practices that govern this arena. Both the Treasury Department and the SEC would benefit from input from PFN members, as machine readable data standards are developed. Without careful and thorough discussions and understanding of public sector financial reporting at the beginning of the process, there will likely be unnecessary confusion, burdens, and costs upon implementation.
To see the letter, click here.
For questions on this article, please contact Stuart Saulters of APGA staff by phone at 202-544-1334 or by email at ssaulters@apga.org.