Accounting is a rigorous and meticulous field, and when approaching finances, often there is much that must be—pardon the expression—accounted for. This includes the state and local standards instated by entities such as the Governmental Accounting Standards Board (GASB).
The GASB establishes accounting and financial reporting standards for state and local governments. These standards are recognized as the authority and provide a thorough, transparent process that is meant to provide crucial information to taxpayers, public officials, investors, and anyone who uses financial reports.
The GASB has a strict set of process activities that are designed to encourage participation in the standard-setting process. In turn, this is meant to stimulate an open study of finances by those preparing, auditing, and using financial reports. These processes come into play especially in larger accounts, such as funds.
What is a Fund?
A fund is a set of accounts—not a separate legal entity. It’s merely an accounting entity with the purpose of achieving certain objectives or activities. Typically, government funds are rigorously managed, and funds are used so that a government can closely oversee resource utilization and curb scope creep on projects.
How Do I Keep Up with Governmental Accounting Standards?
Thankfully, those utilizing an expert team of accountants—such as Atherton & Associates, LLP—don’t need to keep track of the myriad standard updates from the GASB. But you can trust that our CPAs conduct all account management in full accordance with current GASB standards.
For more information about Governmental Accounting Standards, contact Atherton & Associates, LLP.