What is the state budget's relationship to Generally Accepted Accounting Principles (GAAP)?
Under GAAP, the General Fund is used to account for all financial resources except those required to be accounted for in another fund. This differs materially from the Budget Basis General Fund, which is defined primarily by legislation. As a result, approximately 400 funds are classified as part of the General Fund under GAAP; only one is included in the Budget Basis General Fund. Further information on the measurement focus and basis of accounting for funds reported in the State’s Comprehensive Financial Report are discussed in Note 1 to the Financial Statements of that report.
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GAAP, General Fund, Generally Accepted Accounting Principles