Assessing the Relationship Between Objective and Subjective Measures of Fiscal Condition Using Government-Wide Statements CRAIG S. MAHER AND STEVEN C. DELLER Government Accounting Standards Board (GASB) Statement 34 has been in effect for a decade yet there is limited research examining government-wide financial reporting data. This study builds on our ability to delve into the fiscal condition of Wisconsin counties during the Great Recession. The principal aims of the research are: (1) expand on works utilizing GASB 34 reporting requirements; (2) report on county administrators perceptions of fiscal condition; and (3) examine the relationship between subjective and objective measures of fiscal condition. We find little evidence that objective fiscal condition indices are related to subjective administrative assessments of fiscal condition. INTRODUCTION After more than 15 years of discussion, in June 1999, the Government Accounting Standards Board (GASB) adopted GASB Statement 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. This new requirement transformed audit reporting. The most significant changes in Statement 34 include the provision of a Management, Discussion and Analysis section where the governing body provides a description of its fiscal position, a comparison of the adopted budget to the final amended budget, placing a value on government assets such as property, roads, sewerage systems, etc., and government- wide financial reporting. Given the scale of these changes, adoption was phased in over several An earlier version of this paper was presented at the 2012 Annual Conference of the Association for Budgeting and Financial Management, October 11–13, 2012. This study has benefited from the helpful comments of the journal’s reviewers and editor. Any errors are the sole responsibility of the authors. Craig S. Maher is an Associate Professor of Budgeting and Financial Management in the Division of Public Administration at the Northern Illinois University. He can be reached at csmaher@niu.edu. Steven C. Deller is Professor of Agriculture and Applied Economics at the University of Wisconsin—Madison/ Extension. He can be reached at scdeller@wisc.edu. © 2013 Public Financial Publications, Inc. Maher and Deller / Assessing the Relationship Between Objective and Subjective Measures of Fiscal Condition 115