ABSTRACT
This chapter reviews the different bases of accounting and the features of a good accounting system for the government; describes the requirements of reliable reporting of expenditure to fit the needs of the various users; and covers both internal audit and external audit. In government, cash and accrual accounting produce a significant difference primarily on the expenditure side. The budget classification used defines the structure of the subaccounts of the chart of account that are related to budgetary operations. Public financial accountability is the responsibility of the executive branch to render to the people an account of what it has done with the people's money. The information is needed for fiscal transparency as well as for policies on subsidies and financing of public enterprise investments. After the end of the fiscal year, an annual budget report is generally submitted to the external audit office and to the legislature.
