The Financial Accounting Foundation, GFOA, NASACT and the Big Seven state and local government organizations recently agreed to revisions to the appointment process for members of the Governmental Accounting Standards Board. The revisions, contained in a Memorandum of Understanding, are aimed at addressing some of the criticisms of the FAF by the government organizations following the appointment of the GASB chair in December 2019.
 
Among the highlights of the MOU are:

• Acknowledgement that states have sovereign power over accounting standards for themselves and their subdivisions.
• Training for FAF Trustees on the history of GASB and the importance of financial accounting and reporting for state and local governments.
• Defined role of governmental trustees in GASB appointments, including provisions for an extended search for GASB appointments in certain circumstances.