The U.S. Government Accountability Office (GAO) has published the report, REGULATORY REPORTING REFORM: Financial Data Transparency Act Requires Initial Steps Toward Government-wide Data Standards, GAO-26-108420. The report was created to satisfy requirements outlined in the Financial Data Transparency Act (FDTA) which tasked the GAO with evaluating implementation of a Standard Business Reporting (SBR) type program in the United States. The report describes potential costs and benefits of implementation of the FDTA:
Potential benefits of implementation
- Standardized data reporting, as well as the interoperability of data collected by different agencies, could improve the quality and efficiency of data analysis by regulators.
- More efficient data analysis could in turn improve oversight and more timely identification of compliance concerns.
- Common standards for reporting within the framework set forth by the FDTA could reduce reporting entities’ burden by making filing financial reports across multiple regulatory agencies more efficient.
Potential challenges and costs of implementation
- Regulatory agencies may need to modernize legacy data systems, coordinate across agencies, and manage data governance costs.
- Reporting entities could incur costs for adapting processes and systems to comply with the FDTA’s updated reporting requirements, as well as conducting system testing.
The report goes on to address the potential of SBR and identified four areas that illustrate leading practices for interagency collaboration important to standardization efforts:
- Identifying and sustaining leadership that persists through administrations to centralize accountability and speed decision-making.
- Clarifying roles and responsibilities across agencies.
- Including relevant participants who have a stake.
- Developing and updating written guidance and agreements to document and monitor interagency collaboration.
Find links to the highlights and full report.
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