To Err Is Human, but your ACFR cannot afford it.

If your city’s or county’s ACFR (Annual Comprehensive Financial Report) is constructed manually using spreadsheets, Word documents, and PDF drafts, there are critical vulneravilities to consider.

This exposure does not reflect your team’s skills, dedication, or work ethic. It stems from the simple reality that humans are naturally prone to errors. Preparing a comprehensive financial report that aggregates intricate data across interconnected sections leaves little room for oversight. Even minor mistakes can result in significant consequences.

According to a study by the University of Hawaii, nearly 90 percent of spreadsheets contain errors. This compelling statistic highlights the inherent fragility of manual workflows. Consider the number of linked spreadsheets, tabs, and manually calculated footnotes that go into your ACFR. Each introduces an opportunity for errors that can easily go unnoticed.

In a large Northeastern U.S. city, auditors recently discovered over $30 million in financial reporting errors, including a misclassified expenditure nearing $19 million. These discrepancies resulted from manual reconciliation issues and were identified only after publication.

Mistakes of this nature can result in:

• Unwelcome audit findings and higher audit costs.
• Erosion of community trust.
• Delays in bond issuance or funding approvals.
• Compliance risks with GFOA or state reporting mandates.

The Government Finance Officers Association (GFOA) recommends strengthening internal controls to reduce human error in financial reporting. But internal controls alone are not enough.

How Automation Safeguards Your Reporting Integrity

Automating your ACFR process, as offered by Gravity’s ACFR solution, delivers proven advantages:

• Link financial data directly to the general ledger.
• Automate update tables, notes, and statements when data changes
• Enforce Standardized formatting, rounding, and disclosures.
• Track changes and ensure consistent version control.
• Streamline compliance with evolving GASB standards, including GASB 103 and 104.

An automated system preserves accuracy and continuity while freeing your team to focus on strategic analysis and decision-making. Instead of spending weeks checking formulas, you gain confidence in every number and every footnote.

The GAO also emphasizes that antiquated, manual financial processes increase operational risks for public sector organizations. Modernizing financial reporting systems is increasingly seen as necessary for achieving fiscal resilience.

Automation does not replace your team’s trusted expertise. It protects it. It reinforces confidence, enables consistency, and helps create audit-ready results you can stand behind.

Automation is not about replacing expertise; it is about strengthening it. With the right tools, finance teams can produce validated, verifiable, and audit-ready ACFRs while reducing stress and avoiding costly errors.

If you would like to explore how Gravity’s ACFR automation can help your team mitigate risk and preserve continuity in your reporting, contact us here. We are ready to support your next step forward.