Proprietary Accounting in the United States

Proprietary Accounting in the Federal Budget Process

Meaning of Proprietary Accounting in the congressional and executive budget processes (GAO source): Involves federal entities recording and accumulating financial information on transactions and balances for purposes of reporting both internally to management and externally in an entity’s financial statements. “Proprietary accounting” is also referred to as “financial accounting” and is usually based on generally accepted accounting principles (GAAP), which follow established conventions, such as the recognition of the depreciation of capital assets over time as expenses, instead of recognition on the basis of strict association with the obligation or expenditure of appropriated funds. Most federal entities are subject to proprietary accounting standards promulgated through the Federal Accounting Standards Advisory Board (FASAB). (For a discussion of the methods for tracking funds in the federal government, see app. III. See also Federal Accounting Standards Advisory Board.)

Resources

See Also

• Federal Appropriations
• Entries about the United States Budget Process in the Encyclopedia (including Proprietary Accounting)
• Public Debt

Further Reading

• Legislatures and the budget process: the myth of fiscal control

  (J Wehner, 2010)

• Reconcilable Differences?: Congress, the Budget Process, and the Deficit (JB Gilmour, 1990)
• Fiscal institutions and fiscal performance

  (JM Poterba, J von Hagen, 2008)