In the early days of the internet, Craigslist was a revolutionary one-stop platform. Whether you were looking for housing, a new job, second-hand furniture, or even a missed connection, Craigslist had it all. It was simple, centralized, and immensely popular. But as the digital age matured, specialized platforms began to unbundle Craigslist.

• Need a couch to sleep on? Airbnb emerged.
• Looking for a job? Indeed and ZipRecruiter became go-to destinations.
• Selling furniture or a bike? Facebook Marketplace is a no-brainer.

Each service offered a tailored experience that delivered value more effectively than a bundled platform could. This shift—often referred to as “unbundling”—represents a broader trend in the digital economy: focused, customized solutions win.

Now, the same unbundling revolution could transform local government financial reporting according to the Government Finance Officer Association (GFOA).

Why Traditional Financial Reporting Falls Short

According to GFOA, for decades, the Annual Comprehensive Financial Report (ACFR) has been the cornerstone of local government financial transparency. The ACFR is thorough, no doubt. But it’s also:

1. Dense and Overwhelming: Hundreds of pages bundled together with little consideration for who needs what.
2. Untimely: By the time an ACFR is published, it’s often outdated, making it difficult for stakeholders to act on current data.
3. One-Size-Fits-All: Bond analysts, elected officials, auditors, and the public each need different types of financial information. Yet, they all receive the same bundled document.

The Government Finance Officers Association (GFOA) addresses this challenge in its Next Generation Financial Reporting vision. GFOA calls for “unbundling” financial reporting—breaking traditional reports into audience-specific, technology-enabled formats. Over two more blog posts we will break down the rest of their timely article.

Local governments could tailor information to each audience by breaking up financial reporting and providing each group with the information they want. This is how music and TV streaming services work. Instead of buying whole albums, consumers buy access to just the songs they want. Or instead of subscribing to a cable TV package, consumers can buy streaming services that offer the shows and movies they’re most interested in. - A Vision for Next Generation Financial Reporting

Unbundling in Practice: Tailored Insights for Diverse Audiences

Imagine the unbundling of financial reporting as local governments offering specialized streaming channels for financial data:

• Department Heads: Department leaders need operational financial data and performance metrics specific to their areas to manage budgets effectively and make informed decisions.
• External Auditors: Auditors require detailed financial records and compliance documentation to perform thorough reviews and ensure accountability.
• Elected Officials: Officials require high-level summaries and actionable insights presented in charts, dashboards, and forecasts.
• The Public: Residents want transparency. Easy-to-understand visualizations and clear language build trust in how governments manage taxpayer funds.

Giving each stakeholder too much data can make the understanding and analysis overwhelming. Unbundling transforms financial reporting into focused, digestible pieces that cater to specific needs.

Imagine each of the data sources we described as a series of “LEGO blocks” that can be put together in different ways to meet the informational needs of any user. This is the essence of personalization. - A Vision for Next Generation Financial Reporting

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Why Unbundling Matters

The benefits of unbundling go far beyond convenience. For local governments, unbundling:

1. Builds Trust: Stakeholders gain confidence when they receive information in formats they can easily understand and use.
2. Increases Efficiency: Finance teams spend less time producing lengthy reports and more time on analysis, strategy, and decision-making.
3. Improves Timeliness: With modular, technology-driven reporting, stakeholders access critical financial data sooner—when it matters most.

Much like how Airbnb disrupted the housing market or Indeed transformed job hunting, the unbundling of local government financial reporting will change the way stakeholders interact with public data.

ThirdLine couldn’t be more excited about the Future of Financial Reporting

The era of one-size-fits-all financial reports is coming to an end. Just as Craigslist gave way to specialized platforms that better served their audiences, government financial reporting is evolving into next-generation, audience-specific reporting.

At ThirdLine, we’ve been building toward a similar vision for the past three years. The GFOA’s Next Generation Financial Reporting framework aligns perfectly with the work we’ve been doing to help governments deliver more tailored, timely, pre-validated, and actionable insights.

Over the next two blog posts, we’ll take a closer look at key aspects of the GFOA vision:

• Where the Data Comes From: How governments can harness data to power next-gen financial reporting.
• What’s In It for You: The tangible benefits of unbundling reports for governments, finance teams, and communities.

We’re excited to share how these ideas are reshaping financial reporting—and how it will have a positive impact on our local communities.

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