Bowsher says goodbye, pleased federal government is more accountable.

Charles A. Bowsher, U.S. comptroller general and head of the General Accounting Office, has retired after 15 years of service during which he played a major role in strengthening governmental financial management. Under Bowsher's leadership, the GAO has investigated, monitored and reported on virtually all important federal operations, including recent reports on the federal budget deficit and efforts to reinvent government.

Bowsher told attendees at the American Institute of CPAs National Governmental Accounting and Auditing Update Conference in Washington, D.C., that he was pleased with the progress made by governments-- federal, state and local--in reporting how taxpayers' money is being spent. But he emphasized that government fiscal accountability did not yet meet private-sector standards, saying it was imperative for governments to take strides toward better financial management. "Governments in the United States should have as good accounting systems, audits and financial reporting as the private sector," said Bowsher.

A better, more timely report

Bowsher said that although government financial reports seemed accurate and fairly presented, they were not summarized well enough to present a clear overall picture of government and were incomprehensible to most taxpayers. He said it was vital that the Governmental Accounting Standards Board issue standards to produce reports that are understandable to taxpayers, state legislators and city council members. He also said the GASB should move faster on its governmental reporting model project.

Bowsher said he gave the accounting profession high marks for its progress in the past 20 years in an upcoming GAO report requested by Congressman John D. Dingell (D-Mich.). But he urged auditors to look beyond the balance sheet by evaluating the health of a company's internal controls. "Just doing a balance sheet audit as has been done for many years is not good enough for the future," said Bowsher. He said the accounting profession must prepare for more complicated new financial instruments and continue to make the standard-setting process more timely.

Pushing Congress for reform

Bowsher is noted for strongly supporting the Chief Financial Officers Act of 1990 and the Government Performance and Results Act of 1993 that improved federal financial management and better measure the performance of government programs against set goals. He said he was very pleased with the Single Audit Act of 1984 and the passage of its recent amendments in the Single Audit Act of 1996. "Single audit legislation has led to the vast improvement in state and local government financial reporting;' said Bowsher.