The purpose of this study was to develop a conceptual framework for improved financial reporting in public higher education in the District of Columbia. Implementation of major concepts was accomplished through development of an accounting manual for public higher education in the District of Columbia which was consistent with the accounting and reporting principles enunciated by the American Institute of Certified Public Accountants (AICPA), in Audits of Colleges and Universities, and by the National Association of College and University Business Officers in College and University Business Administration.

The District of Columbia is unique because the local government performs the functions of state, county, and municipal governments, in addition to functioning as a quasi-federal agency. The District of Columbia government has been severely criticized for the overall quality and integrity of its financial accounting and reporting system. In response to a congressional mandate, the city is undertaking a complete revision of its financial accounting and reporting system.

The existing financial accounting and reporting system for public higher education in the District of Columbia has been following federal agency guidelines in contrast to recommended practices by AICPA, NACUBO, and NCHEMS. In development and evaluation of an Accounting Manual to be used by the University of the District of Columbia, the author modified a questionnaire, the manual requirements, and. supporting reference information to four jury groups. The primary jury group consisted of professionals in higher education financial management in the District of Columbia; the remaining jury groups represented various constituencies that would use the proposed manual or be responsible for its adoption. Based on the recommendations of these jury groups and an analysis of the various legal and operational requirements imposed by statue, a manual was developed that was determined satisfactory for operational implementation.

The author recommends the use of a similar procedure for developing accounting manuals for use by other institutions and cites the benefit of multiple jury groups broadly representative of experts and users.