What citizens want to know about their government's finances: Closing the information gap

Abstract

There is an information gap between citizens and their governments when it comes to government finances. The inherent complexity of fiscal policy makes it exceedingly difficult for effective public participation. Effective public participation in fiscal decision making must address informing or educating the citizenry with accurate and meaningful government financial data. Better understanding citizen wants and perceptions is critical to closing the information gap between users and providers of financial information. This study uses information gathered from focus groups with residents of Norfolk, Virginia that asks what government financial information they want and how to make that information useful. Results suggest that citizens are interested in some types of information over others and that such information must be timely, made relevant and contextualized.

Sustainability, Popular and Integrated Reporting in the Public Sector: A Fad and Fashion Perspective

“…Despite the different forms in which PFR can be implemented, there is general agreement about its principles. An effective PFR can be read and understood by different constituencies, and thus must provide relevant financial information, and be short, accessible and comprehensible, visually appealing and community-oriented [56]. PFR can be applied, in principle, in very different settings regardless of the accounting regulations and principles applied (IPSAs versus EPSAs or national accounting standards), the timeframe (budget and/or end of the year report), and the level of government (central, regional or local).…”

Citizen-Centered Reporting: Assessing Popular Financial Reporting Practice in Italian Decentralized Governments

“…Likewise, a short, attractive and readable style of writing, through the adoption of clear language and an appropriate design for the average person with no financial reporting skills, is also recommended. This is because, greater and better popular reporting practices can foster effective accountability and transparency concerning government usage of public resources, that are crucial to enhance citizen participation in the democratic processes of public governance in order to allow for better government outcomes (Osborne, 2010;Bovens et al, 2014;Grossi & Steccolini, 2014;Jordan et al, 2016). This could be especially relevant for the municipalities, even more so for those of a small size, where citizens are able to play an active role in the relationship with governments more easily, given the small size of the community.…”

“…Furthermore, easy access to the disclosed data on the website portals can help governments improve their levels of openness and transparency towards their communities, supporting effective public accountability and participation (Groff & Pitman, 2004;UN, 2014, p. 77;Lourenço, 2015). However, for both of these improvement purposes, it is equally essential that the disclosed available data is easily comprehensible and relevant for ordinary readers (Yusuf & Jordan, 2012;Jordan et al, 2016).…”

“…It is very important to fill the information gap that exists between citizens and governments because this gap hinders effective citizen participation in governance processes (Jordan et al, 2016;Manes Rossi, 2019). As some studies have proven, providing popular financial data and making them accessible through websites and thus, helping to close the information gap, would increase accountability and public participation in governance (Jordan et al, 2016;Cohen et al, 2017). More in general, providing information about performance for citizens -as well as to all stakeholders -can encourage collaborative governance through the constructive engagement of people in public policy decision making and management (Emerson et al, 2012).…”

Accessibility of the Management's Discussion and Analysis to Citizen Users of Government Financial Reports

“…Furthermore, those citizens, according to Lutz et al (), should be able to access information about how funds are spent and who pays, in addition to “the past, present, and future financial outlook of the government” (26). Jordan et al () found citizens to be more focused on government revenues, especially taxes. In other words, citizens want financial statements to inform them of the cost of government, as well as the impact it has on them.…”