Lewis Article on Why Financial Statements Are Necessary Published in PA Times

September 3, 2024

PA Times

Minchin Lewis

Public Administration & International Affairs Department

Economic Policy

United States

PA Times

Minchin Lewis

“Financial Reporting: Why We Need Financial Statements,” written by Minch Lewis, adjunct professor of public administration and international affairs, was published in PA Times (a publication of the American Society for Public Administration). Following is an excerpt:

Why do we need financial instruments?

Pilots rely on a dashboard of instruments to tell them where they are, where they are going and how they are going to get there. Financial managers have their own cockpit with a dashboard of financial instruments. If they are working, they guide the manager to keep the government going in the direction set by the budget. Are we going up or down? Are we using taxpayer resources as authorized?

What are the financial instruments?

They are standardized reports on the source and use of public resources usually found in year-end audited financial statements. The financial statements are taken from the government’s computerized financial management system. They are based on the quality of the financial management system.

Read the full article at the link above.