Researchers Offer Suggestions for Addressing Public Sector Accountant Shortage

Noting that state and local governments are “being squeezed by a shortage of accounting professionals,” a new report offers a series of suggestion for drawing more accountants to the public sector.

Issued by the American Institute of CPAs (AICPA) and the National Association of State Auditors, Comptrollers and Treasurers (NASACT), the joint report says the aforementioned shortage makes it difficult for public sector employers to find staff accountants who can prepare critical financial information or outside firms to conduct audits.

In a statement summarizing the report’s key points, AICPA urges addressing this issue with “a multifaceted approach” that includes educating legislative bodies about the value of certified public accountants (CPAs) and offering competitive salaries for CPAs working in government.

“We have a talent shortage in accounting that affects business as a whole, and many of the pipeline initiatives the profession is putting in place will help the public sector as well,” said Susan Coffey, CPA, CGMA, the AICPA’s CEO of public accounting, in a statement.

“But accountants who do government work face unique challenges that require more specialized solutions. The public deserves to know its tax dollars are being spent as intended—and that requires strong government finance teams and experienced auditors.”

The report’s recommendations included making government employers more competitive with their private sector counterparts by taking steps such as:

• Using available data to benchmark salaries for CPAs against similar positions in the public and private sectors and considering options for remote or hybrid work and flexible hours.
• Considering CPA firm qualifications as part of the evaluation of external auditors, as opposed to focusing strictly on proposed fees. And to broaden the pool of potential auditors, government entities should consider eliminating geographical limitations on permissible firms.

AICPA and NASACT also provided recommendations for getting accounting new or recent graduates interested in government work. For example:

• Colleges and universities should increase the number of classes that address governmental topics and work to build relationships with government entities to increase their visibility on campus.
• State and local governments should support internships, mentorships and financial incentives for accountants who want to work in government and pursue a CPA.

“We’re urging a renewed investment in public-sector accounting and auditing by state and local governments and CPA firms,” said Kinney Poynter, NASACT’s executive director, in a statement. “Trust in government requires governments to prepare clear, consistent financial data that is backed by a strong audit function. It’s essential we make this a priority.”