| Governmental
Accounting Made Easy
By
Warren Ruppel
Wiley,
ISBN 0-471-64868-X; $29.95 hardcover; 277 pages
Reviewed
by Michele Mark Levine
APRIL 2005
- It is troubling how few people in society, including the
educated, the public-spirited, and the otherwise financially
literate, can (and do) pick up financial statements from their
state or local government and glean a basic understanding
of its financial position and results of operations. In Governmental
Accounting Made Easy, author Warren Ruppel states that
his goal in writing the book is to introduce government accounting
to nonaccountants, or to those with accounting knowledge limited
to the commercial or not-for-profit models. His intended audience
is those involved with government finance, such as through
bond underwriting and rating, and those with a more casual
or personal interest in understanding government financial
statements. (He specifically directs accountants and auditors
with a professional interest to his more comprehensive book,
GAAP for Governments, also published by Wiley.) Based
solely on this objective, I had positive expectations for
the book.
The
book is well organized, with an introduction that builds
a foundation for those with little or no accounting background.
Chapters 2 through 6 address distinguishing government accounting
topics—such as multiple measurement foci and bases
of accounting—that are unique to governmental GAAP,
and fund accounting, the various governmental financial
statements and reports readers may encounter, the reporting
entity concept, and how special activities like taxes and
intergovernmental grants are accounted for. The remaining
chapters discuss capital assets and pensions, as well as
other selected topics, and a preview of anticipated future
developments. Ruppel’s writing style is informal,
with occasional interjections of humor and several gentle
gibes at the Governmental Accounting Standards Board (GASB).
Many excellent examples, elegantly simple and illustrative
of the concepts, are set apart from the main text, as are
several “expert tips.” These are especially
helpful, as the broad language common to accounting standards
is sometimes employed by the author in the main body of
the work.
Ruppel
confesses that treatment of certain topics cannot be done
adequately in the spirit of his title (“made easy”),
but in most cases he finds good simplifying assumptions,
clearly stated, and indicates that details of complex issues
are left to more technical literature. When discussing challenging
topics, the content is organized such that a general understanding
can be obtained by reading a short passage, followed by
an optional in-depth treatment.
A few
difficulties arise because the author attempts to reach
readers with a wide range of knowledge and also to make
the book usable as a primer or reference guide. Some terms
and concepts are explained in multiple places, while others
are explained only once, not necessarily at their first
usage or with a reference to the explanation. A glossary
would be a welcome addition.
Despite
stating that he intends to discuss reporting only under
the current (post–GASB 34) reporting model, the author
points out on many occasions where the new model and the
old diverge. This adds an interesting historical perspective,
but also needless complexity. Ruppel also discusses the
relevant GASB pronouncements and other technical citations,
which is not necessary for the intended audience. While
numerous illustrations of financial statements are included,
they are devoid of any annotation, and even of actual numbers,
which would allow a novice reader to see how these nontraditionally
formatted statements flow.
Governmental
Accounting Made Easy is an excellent guide for those
first trying to understand financial statements of state
and local governments not as accountants or auditors, but
as interested professionals or simply as citizens and taxpayers.
The author has written an intelligent book that seeks to
make important information more accessible, by making it
if not quite easy, then at least easier.
Michele
Mark Levine, MPA, CPA, is the director of accounting
services for the New York City Mayor’s Office of Management
and Budget. She is also a member and past chair of the NYSSCPA’s
Government Accounting and Auditing Committee, and has served
on committees of the AICPA and the Government Finance Officers
Association. Levine has frequent dealings with Ruppel in the
course of her work and professional duties.
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