By Zhang Junwei, Research Department of Macro-economy of DRC

The United States, as a federal state, adopts different ways of releasing the comprehensive annual financial report for various states. In each state, governments at different levels follow the same norms and regulations formulated by the state government. It would be of great significance for the smooth advance of reform in China if we could draw on relevant experience both from home and abroad. By examining the performance of Orange County, California, USA, this paper gives an analysis of federal governments' practice on the compilation of comprehensive financial report as well as an introduction to some successful methods China could use as reference. The major features of the comprehensive financial report compiled by the Orange County are: 1. An equilibrium relation is given both between the net value of government fund and government's net asset and between a variable government fund balance and a variable government net asset; 2. Great priorities are given to debt issues; 3. A series of measure are taken to guarantee the credibility of financial records. The methods adopted by Orange County of California in releasing the comprehensive annual financial report has provided us the following inspirations: 1. The compilation of comprehensive financial report should be made in light of the national conditions; 2. Data consistency should be guaranteed; 3. Great importance should be attached to debt issues; 4. Technological guidance and assistance should be offered by higher-level authorities; 5. Diversified solutions should be adopted to guarantee the authenticity and credibility of the information on the comprehensive financial report.