NAFOA POLICY ALERT: Relief for Tribal Government Audits
July 25, 2017
The American Institute of CPAs released new Technical Questions and Answers that provides some relief to tribal governments that issue FASB-based financial statements. While the Technical Questions and Answers is not authoritative, it does represent AICPA's view of what a CPA should consider when looking to report on the financial statements of a tribal government entity.
NAFOA's Financial Management Advisory Committee has long advocated for a solution that would allow tribal governments to use the commercial (FASB) financial reporting without receiving an adverse audit opinion. Included in the Technical Questions and Answers is a section that permits an auditor to issue a dual opinion: an adverse opinion for GASB financials and a second clean opinion on compliance with FASB standards.
This represents an important first step; however, a longer-term solution still needs to be addressed through additional action. NAFOA has prepared a briefing document on this issue.