Budgetary Execution and Management
Which Funds of the Government Adopt Budgets?
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Differences between the Budget and GAAP
Basis of Accounting Differences
Almost all organizations—governmental, commercial, or not-for-profit—operate using some form of budgeting to ensure that resources are used in accordance with management’s intentions and to facilitate obtaining results of operations consistent with management’s plans. In the governmental environment, budgets take on greater importance, because they provide the framework in which public resources are spent. From an accounting and financial reporting viewpoint, budgets in government are a key component in achieving the accountability objective described in Chapter 2. Budgets in government generally represent adopted law, which is far more significant than simply a financial planning tool. Because many governments do not follow GAAP to prepare their budgets, achieving the accountability objective by comparing a non-GAAP-based budget with GAAP-based results presents some unique challenges. GASBS 34 affirmed the importance of budgetary reporting by ...