What type of chapter accounting system is acceptable by the Office of the Auditor General?
The Local Governance Act requires Chapter accounting system should be established and maintained in accordance with Generally Accepted Accounting Principles (GAAP) for government entities. As such, GAAP ideally considers “fund accounting” as the framework for public-sector accounting and financial reporting. Fund accounting allows governmental entities to segregate their financial resources to ensure that monies are spent only for approved and legitimate purposes.
