Local governments use annual independent audits to determine the financial condition of an agency. The Local Agency Formation Commission for San Bernardino County ("LAFCO") is advancing the use of audits and has launched an online Financial Indicators program. The purpose of the program is to provide more robust information on the financial condition of local agencies within San Bernardino County which will allow for better understanding of where an agency has been. Additionally, LAFCO uses the information in conducting state-mandated service reviews as a means to make the required determination of the financial ability of an agency to provide services.

The data presented in the program was derived from the annual financial statements of the agencies and has been submitted to them for verification. The indicators were selected by representatives of local governments in San Bernardino County, from which all agencies were invited to participate. The Financial Indicators program will be maintained and updated annually by LAFCO on the LAFCO website.