ABSTRACT
The regular reoccurrence of state and local governments' fiscal problems over the last 30 years has pointed to the need for an effective system to provide citizens, creditors, managers, legislative and oversight bodies, and others with early warning sings of pending fiscal stress. The widespread financial problems that occurred in the 1970s in cities throughout the United States resulted in changes in financial reporting nationwide. Pressure from the credit market and effective leadership of financial organizations have had major impacts, leading to improvements in financial reporting standards as well as compliance with those standards.
