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Special items in government financial statements are often termed "one-shot" revenues due to their infrequent and non-recurring nature, with no expected continuation in future fiscal periods. These items are typically unconventional and non-routine, capable of significantly affecting a government's financial position for a specific year. Examples of special items encompass windfall grants, legal settlements, or unanticipated asset sales.

Special items are not integrated with regular revenues in government financial statements to enhance transparency and faithfully depict the government's continuous, sustainable revenue sources. This separation enables users of the financial statements to gain a clearer insight into the government's fundamental financial performance and stability, devoid of any misrepresentation caused by one-time windfalls or unexpected expenditures.

Upon reviewing the general fund financial statements of five different government entities:

• City of San Francisco, California: Their 2022 financial statement disclosed a special item of $12 million, stemming from a legal settlement tied to a municipal liability case.
• City of Phoenix, Arizona: In their 2022 financial statement, they reported a special item of $7 million, attributed to a one-time grant for park redevelopment.
• Cook County, Illinois: Their 2022 financial statement indicated a special item of $3 million, representing proceeds from the sale of county-owned land.
• City of Miami, Florida: In their 2022 financial statement, they reported a special item of $18 million, received as a federal grant for disaster relief efforts.
• City of Portland, Oregon: Their 2022 financial statement mentioned a special item of $6 million, derived from the sale of city-owned real estate.

These special items are presented in the financial statements with explanations regarding their nature and amounts, ensuring transparency and clarity for financial statement users. Accurate communication of the impact of these one-time revenues is vital for government entities, aiding stakeholders in an accurate assessment of their financial well-being.

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