Eric, I found that the Departmental Restrictions in the Financial Reporter is the best solution.
This is only available to the user SYS, who is able to set which user can view which Depts.
This way, we only need one financial statement.

In your scenario, I would need 40+ separate reports for our 40+ different Depts.
And of course what will happen after we create all the reports for each Dept, the client will ask for "just one tiny modification to the report" - oh-oh!