The first edition of the Uniform Chart of Accounts For Local Governments was approved by the Department of Audits and Accounts and published in December of 1998. Since its initial publication in 1998, DCA has received numerous comments and recommendations for improvements to the Uniform Chart of Accounts. In response, we began working on the second edition. After months of hard work, and collaboration with Georgia's local governments, the Association County Commissioners of Georgia (ACCG), the Georgia Municipal Association (GMA), the Carl Vinson Institute of Government (CVIOG), and the Department of Audits and Accounts, we are pleased to present the second edition of the Uniform Chart of Accounts For Local Governments in Georgia.

Although there are a number of changes from the first edition of the Chart of Accounts, the basic structure has not changed. Some accounts have been added and some have been deleted, account descriptions have been refined, and funds have been added. Also, the requirement that local governments allocate indirect costs has been delayed until fiscal years ending in 2004. These changes were made to better facilitate the management needs of local governments while still providing the necessary degree of comparability of financial information reported by Georgia's local governments.

While the second edition of the Chart of Accounts addresses issues raised by local governments during the statewide training sessions, we plan to begin working immediately on a third edition. The third edition will incorporate major changes in the governmental financial reporting model imposed by the Governmental Accounting Standards Board Statement 34. Also, with help from ACCG, GMA, and Department of Audits and Accounts, we will be developing guidance on indirect cost allocation for inclusion in the third edition of the Chart of Accounts.

Mike Bush of our Research and Communications staff has taken over DCA's day-to-day administration of the Chart of Accounts, and will be the primary contact for related questions. Mike served on the Advisory Committee during the development of the first edition of the Uniform Chart of Accounts For Local Governments in Georgia. He is a CPA with an extensive background in governmental auditing and accounting.

We would like to thank everyone who participated in the development of the Uniform Chart of Accounts For Local Governments in Georgia, and we look forward to your continued involvement as we work toward the release of the third edition.