News

Baltimore Audit Finds a Bigger Problem Than Any Single Finding: Weak Controls Across the City

Tue, 08 Sep 2026 00:00:00 -0400

Baltimore’s 2025 Single Audit points to a broader problem than any one accounting error or compliance issue. Across the city’s finances, auditors repeatedly found the same underlying weaknesses: late reviews of account balances, fragmented responsibilities across departments, weak monitoring, and internal controls that failed to catch problems before year-end. Those breakdowns affected everything from cash and grant reporting to utility billing and cybersecurity.

PRESS RELEASE: Truth in Accounting Joins FOX45, WJLA, and The Baltimore Sun to Show Marylanders the Full Cost of Government

Fri, 04 Sep 2026 00:00:00 -0400

Truth in Accounting, a nonpartisan nonprofit that has analyzed government financial reports since 2002, today announced a joint effort with The Baltimore Sun and Sinclair Broadcast Group stations FOX45 in Baltimore and WJLA in Washington, D.C., including the Spotlight on Maryland investigative unit. The collaboration will examine Maryland’s finances from the State House to every county and Baltimore City over time, using governments’ own audited numbers, not campaign talking points.

Georgia Audit Finds Major Reporting Errors, Weak Cash Controls, and Ongoing Problems in Unemployment Accounting

Fri, 28 Aug 2026 00:00:00 -0400

Georgia’s 2025 statewide audit identified recurring weaknesses in financial reporting, accounting systems, cash reconciliations, information technology (IT) controls, and oversight across multiple agencies. While many errors were corrected before the state’s financial statements were finalized, auditors found repeated instances where the agencies’ internal controls failed to catch significant mistakes until the audit began.

Delaware Audit Finds Missing Documentation, Late Reviews, and Ongoing Weaknesses in Federal Program Oversight

Thu, 06 Aug 2026 00:00:00 -0400

Delaware’s 2025 Single Audit identified recurring problems across multiple state agencies, including weaknesses in financial reporting, payroll oversight, proper documentation, and federal reporting. While the report does not conclude that fraud occurred, it does show how missing records, late reviews, unsupported reports, and inconsistent internal controls can make it harder for the state to prove that taxpayer and federal dollars were managed properly.

Why David Cotton's Call for Auditing Reform Matters Now More Than Ever

Fri, 31 Jul 2026 00:00:00 -0400

At Truth in Accounting, we believe that transparency and accountability in government finances are a cornerstone for an informed electorate. That’s why we’re enthusiastic about David Cotton’s recent article for the Association of Government Accountants, which takes a hard look at the shortcomings of Single Audits in uncovering fraud, waste, and abuse involving federal dollars. This is particularly timely in light of the recent and alarming fraud in Minnesota, which we have reported on before.

FASB Tightens the Screws on Corporate Transparency (Financial Statement Location Dimensions — Yes, That's the Actual Name)

Thu, 23 Jul 2026 00:00:00 -0400

The Financial Accounting Standards Board’s (FASB) new guide on Financial Statement Location Dimensions is meant to enhance corporate transparency through better XBRL tagging. Its intended purpose is to demonstrate how structured data can clarify where items are reported, reducing ambiguity for users. Time will tell.

The PROMISE Act: A Procedural Step That Must Deliver Full Transparency and Honest Accounting

Thu, 16 Jul 2026 00:00:00 -0400

Truth in Accounting (TIA) welcomes the bipartisan introduction of the Protecting Retirement Opportunities and Maintaining Income Security for Everyone (PROMISE) Act by Senators Cassidy, Durbin, Tillis, Kaine, and colleagues. As the Social Security Trust Fund faces depletion in 2032—with an automatic 22% benefit cut looming without action—this legislation creates a much-needed procedural framework to force congressional debate and a vote on long-term solvency.

However, any meaningful solution must go beyond process. True solvency requires full accrual accounting that honestly reflects the enormous scale of Social Security’s unfunded promises.

Colorado's 2025 State Audit Reported: Billions in Accounting Adjustments, Millions in Reporting Errors, and Continued Flaws in Government Oversight

Fri, 10 Jul 2026 00:00:00 -0400

Colorado's 2025 Single Audit identified 48 findings across state agencies, highlighting recurring weaknesses in financial reporting, cybersecurity, internal controls, and oversight of federal grant programs. While auditors noted that agencies had made progress in some areas, they also found that many longstanding problems remained unresolved.

Another ‘Balanced' Illinois Budget? Unpacking the Gimmicks and Pension Shortfall

Fri, 26 Jun 2026 00:00:00 -0400

Gov. J.B. Pritzker signed Illinois’ eighth consecutive “balanced” budget for FY2027, a record $55.9 billion plan (the largest in state history). He framed it as responsible, affordability-focused governance amid federal headwinds. This claim relies on misleading accounting gimmicks that obscure Illinois’ true fiscal picture. Here’s the full truth.

Global Momentum Builds for Full Accrual Accounting: A Wake-Up Call for Transparent Government Finances

Fri, 19 Jun 2026 00:00:00 -0400

Truth in Accounting (TIA) applauds the steady global shift toward accrual-based financial reporting and budgeting, as highlighted in the International Federation of Accountants (IFAC) and the Chartered Institute of Public Finance and Accountancy (CIPFA) International Public Sector Financial Accountability Index 2025 Status Report.

Alabama's 2024 Audit Raises Red Flags on Taxpayer Money

Fri, 12 Jun 2026 00:00:00 -0400

Alabama’s latest Single Audit Report reveals troubling issues in the state's management of federal funds. The report highlights weak oversight, sloppy record-keeping, and broken internal safeguards across several agencies, which impact millions of dollars in taxpayer-funded programs.

Ohio Audit Exposes Major Mess in Handling Billions of Your Tax Dollars

Wed, 03 Jun 2026 00:00:00 -0400

Ohio families are working harder than ever, paying their taxes, and expecting the state to handle federal money responsibly. But a new state audit has some troubling news: Ohio has serious problems managing billions in federal funds for healthcare, school meals, unemployment assistance, and energy assistance for low-income families.

13 States Fail to Earn Clean Audit Opinions

Fri, 29 May 2026 00:00:00 -0400

In the newly released 2026 Financial Transparency Score report, Truth in Accounting delivers a sobering assessment of how well state governments disclose their true financial condition to taxpayers. While the report examines multiple aspects of financial reporting—including timeliness, pension data accuracy, and off-balance-sheet liabilities—one finding stands out as particularly troubling: 13 states did not receive clean audit opinions on their financial reports.

Financial Transparency Score 2026

Tue, 12 May 2026 00:00:00 -0400

Truth in Accounting’s Financial Transparency Score 2026 evaluates how effectively each state government discloses its true financial condition through audited financial reports.

Illinois: Tier 2 Pension Costly Benefit Increases Supercharge the State's Pension Crisis, and Local Governments Would be Hit Hardest

Wed, 06 May 2026 00:00:00 -0400

Illinois’ public pension systems are in severe crisis, with chronic underfunding threatening retirees, taxpayers, and the state’s fiscal stability. Truth in Accounting has reported on this issue for years, highlighting how the state’s failure to make full actuarially determined contributions (ADC) has exacerbated the problem. As of fiscal year 2024, Illinois’ pension systems face $148.6 billion in unfunded liabilities, with a funded ratio of just 47.8%. This is well below the 65% threshold considered critical under private sector pension funding standards established by federal law. Pension payments consume approximately 20% of the state budget, crowding out investments in education, infrastructure, and public services. Benefit increases without corresponding funding adjustments will worsen the state’s long-term pension imbalance.

The Pension Time Bomb: Why the GASB's Accounting Rules Demand Congressional Oversight

Thu, 23 Apr 2026 00:00:00 -0400

America’s state and local governments are sitting on a hidden fiscal crisis. Under today’s official accounting rules, hundreds of billions of dollars in underfunded pension promises are not reflected as liabilities in the budgetary fund statements used for budgeting decisions. The result? Distorted budgets, squeezed funding for schools, roads, and public safety, and a massive transfer of costs to future generations.

The I-64 Near Miss: When Crumbling Infrastructure Meets Misleading Financials

Thu, 23 Apr 2026 00:00:00 -0400

The I-64 Bridge in Illinois has a pothole so large that the road beneath it is visible. It was almost hit by a semi-trailer. This is extremely dangerous, putting lives at risk.

And it highlights the results of poor infrastructure asset management in the audited financial reports, which directly ties to what our friend David Draine at the Pew Charitable Trusts is working on.

The Accounting Juggling Act

Tue, 14 Apr 2026 00:00:00 -0400

By Judi Willard

Adam Smith warned us about one “juggling trick”: governments printing money to pay their debts. As Thomas Savidge explained so clearly in his latest article, that trick lets politicians enjoy today’s spending while shifting tomorrow’s pain onto future taxpayers and currency holders. It blurs the bright line between fiscal and monetary policy, erodes public wealth, and has doomed empires from Rome to Argentina.

Yet Smith’s “juggling trick” has an equally deceptive companion: the federal government’s own accounting and reporting rules.

Financial State of the Union 2026

Wed, 01 Apr 2026 00:00:00 -0400

Truth in Accounting’s analysis of the most recent audited Financial Report of the U.S. Government found its overall financial condition worsened by $11.6 trillion in 2025.

Louisiana's 2024 Single Audit Reveals Significant Federal Fund Compliance Issues

Mon, 30 Mar 2026 00:00:00 -0400

Each year, states like Louisiana undergo a Single Audit to verify proper use of federal funds. These audits assess internal controls, compliance with requirements, and safeguards against misuse, with special focus on major programs.