,,iv  #aac? ,,congress  #b;d ,session   
,h4 ,,res4 #ede  ,,9 ,,! ,,h\se ,,(     
,,repres5tatives  ,april #g1 #bjad ,mr4 
,r5acci 7= himself1 ,mr4 ,conaway1 ,mr4 
,%]man1 & ,mr4 ,murphy ( ,florida7      
submitt$ ! foll[+ resolution2 :i* 0     
ref]r$ to ! ,committee on ,ov]sight &   
,gov]nm5t ,re=m  ,,resolution  ,express+
 ! s5se ( ! ,h\se ( ,repres5tatives t ! 
,f$]al ,gov]nm5t %\ld adopt & use       
accrual basis g5]ally accept$ acc\nt+   
pr9ciples = ,gov]nm5t budget+1 f9ancial 
report+1 & p]=mance evaluation purposes4
  ,:]eas ,presid5t ,?omas ,jeff]son     
in/ruct$ ,secret>y ( ! ,treasury ,alb]t 
,gallat9 9 #ahjb3 ,if ''' !re c be add$ 
a simplification ( ! =m ( acc\nts 9 !   
,treasury ,dep>tm5t1 & 9 ! organization 
( its (fic]s1 s z to br+ ev]y?+ to a    
s+le c5tre1 we might hope to see !      
f9ances ( ! ,union z cle> & intelligible
 z a m]*ant's books1 s t e memb] (      
,congress1 & e man ( any m9d 9 ! ,union1
 %\ld be able to compreh5d !m1 to       
inve/igate abuses1 & consequ5tly to     

control !m42 ,:]eas1 9 #aidi1 ! f9d+s ( 
! fir/ ,hoov] ,commission 7 endors$ by  
,presid5t ,h>ry ,truman1 & !            
,commission's recomm5dations 7 issu$ to 
,congress 9 n9ete5 sep>ate reports1     
result+ 9 ! passage ( ! ,budget &       
,acc\nt+ ,proc$ures ,act ( #aiej1 giv+ !
 ,g5]al ,acc\nt+ ,(fice ! au?ority to   
make x a requirem5t t ag5cy acc\nt+     
sy/ems be ma9ta9$ on ! accrual basis 9  
ord] to secure ,comptroll] ,g5]al       
approval2 ,:]eas1 9 #aiee1 ! f9d+s ( !  
second ,hoov] ,commission ,report 7     
endors$ by ,presid5t ,eis5h[] & report$ 
to ! ,unit$ ,/ates ,congress :i* pass$  
,public ,law #hd-hfc1 9 #aief1 e/abli%+ 
! foll[+3 ,z soon z practicable ''' !   
head ( ea* executive ag5cy %all1 9      
accordance ) ! pr9ciples & /&>ds        
prescrib$ by ! ,comptroll] ,g5]al1 cause
 ! acc\nts ( su* ag5cy to be ma9ta9$ on 
an accrual basis to %[ ! res\rces1      
liabilities1 & co/s ( op]ations ( su*   
ag5cy ) a view to facilitat+ !          
prep>ation ( co/-bas$ budgets '''2      

,:]eas1 9 #aifg1 ,presid5t ,lyndon      
,johnson's ,commission on ,budget       
,concepts1 a tempor>y blue ribbon       
commission head$ by ! ,secret>y ( !     
,treasury ,david ,k5n$y1 recomm5d$ t !  
accrual basis ( measur+ receipts &      
exp5ditures be sub/itut$ = ! ca% basis  
at z e>ly a date z feasible42 ,:]eas1 9 
#aifi1 ,presid5t ,ri*>d ,nixon reaffirm$
 ! conclusions ( ,presid5t ,johnson's   
,commission on ,budget ,concepts to make
 ! conv]sion = ! ,f$]al ,gov]nm5t f !   
ca% basis to ! accrual basis ( acc\nt+2 
,:]eas1 9 #aigf1 be=e ! ,committee to   
,inve/igate a ,balanc$ ,f$]al ,budget ( 
! ,democratic ,rese>* ,organization on  
,implem5t+ ,accrual ,acc\nt+ ,)9 !      
,f$]al ,gov]nm5t1 ,comptroll] ,g5]al    
,elm] ,/aats /at$ ! foll[+3 ,9 summ>y1  
accrual acc\nt+ 9 ! ,f$]al ,gov]nm5t has
 be5 a legal requirem5t s9ce #aief4     
,s9ce accrual acc\nt+ is fundam5tal to  
s\nd f9ancial managem5t x has always be5
 a basic t5et ( our pr9ciples & /&>ds4  
,i believe t curr5t economic conditions 

& ! ext5sive gov]nm5t use ( deficit     
f9anc+ h acc5tuat$ ! ne$ = ! ,f$]al     
,gov]nm5t to provide bett] ov]all       
f9ancial reports t %[ cle>ly = ! b5efit 
( ! ,congress & ! public ! major aspects
 ( its f9ancial position & op]ations42  
,:]eas1 9 #aihd1 ! ,unit$ ,/ates        
,treasury prep>$ its own prototype      
v]sion ( ! ,unit$ ,/ates ,gov]nm5t's    
annual consolidat$ f9ancial /atem5ts ) a
 reconciliation s*$ule ( accrual        
op]ation results to ! ca% basis budget z
 ( ,septemb] #cj1 #aihc & #aihb1 b      
deviat$ f accrual acc\nt+ by remov+1 f !
 f9ancial /atem5ts1 ! actu>ially comput$
 long-t]m liability = ,social ,security 
& ,m$ic>e2 ,:]eas1 9 ,octob] #aiij1 a   
,memor&um ( ,und]/&+ on ,f$]al ,gov]nm5t
 ,acc\nt+ ,/&>ds among ! ,g5]al ,acc\nt+
 ,(fice1 ! ,dep>tm5t ( ! ,treasury1 & ! 
,(fice ( ,managem5t & ,budget e/abli%$ !
 curr5t ,f$]al ,acc\nt+ ,/&>ds ,advisory
 ,bo>d to det]m9e acc\nt+ /&>ds t are   
appropriate = ! ,unit$ ,/ates           
,gov]nm5t's annual f9ancial /atem5ts1 z 

reque/$ ( ! ,director ( ! ,(fice (      
,managem5t & ,budget 9 ! ,*ief ,f9ancial
 ,(fic]s ,act ( #aiij2 ,:]eas1 9        
,novemb] #aiij1 ,presid5t ,george ,h4,w4
 ,bu% sign$ ! ,*ief ,f9ancial ,(fic]s   
,act ( #aiij1 e/abli%+ a ,*ief ,f9ancial
 ,(fic] = ! ,unit$ ,/ates1 )9 ! ,(fice (
 ,managem5t & ,budget1 = ea* major      
,unit$ ,/ates dep>tm5t & ag5cy1 &       
requir+ ! annual f9ancial /atem5ts ( !  
,unit$ ,/ates ,gov]nm5t to be publiciz$ 
annually2 ,:]eas1 9 ,octob] #aiib1 !    
,national ,executive ,committee ( !     
,association ( ,gov]nm5t ,acc\ntants    
adopt$ ! recomm5dations ( !             
organization's ,tru? 9 ,budget+ &       
,acc\nt+ ,blue ,ribbon ,task ,=ce1 call+
 =1 among o!r ?+s1 ! use ( an accrual   
basis ( acc\nt+1 includ+ reali/ic       
treatm5t ( all unrecord$ & cont+5t      
liabilities2 ,:]eas1 9 #bjjc1 ,f$]al    
,res]ve ,*airman ,alan ,gre5span1 9     
te/imony be=e ,congress1 /at$ t ! use ( 
accrual-basis acc\nt+ = ! ,f$]al        
,gov]nm5t w\ld lay out m cle>ly ! true  

co/s & b5efits ( *anges to v>i\s taxes &
 outlay programs & facilitate !         
developm5t ( a broad budget /rategy ''' 
,9 do+ s1 ^! acc\nts %\ld help %ift !   
national dialogue & cons5sus t[>d a m   
reali/ic view ( ! limits ( our national 
res\rces42 ,:]eas1 9 #bjji1 ! ,am]ican  
,in/itute ( ,c]tifi$ ,public            
,acc\ntants1 9 a lett] to ! ,f$]al      
,acc\nt+ ,/&>ds ,advisory ,bo>d1 /at$ t 
we cont9ue to believe t ! social        
insurance programs ''' are curr5tly     
execut$ & publiciz$ z ex*ange programs &
 t !re %\ld be exp5se & liability       
recognition4 7on ! accrual basis72      
,:]eas ! #bjab f9ancial /atem5ts = !    
,unit$ ,/ates ,gov]nm5t ref] to !       
acc\nt+ sy/em us$ by ! ,dep>tm5t ( !    
,treasury 9 prep>+ annual reports z a   
modifi$-ca% basis1 n an accrual basis2  
,:]eas1 on ,june #be1 #bjab1 !          
,gov]nm5tal ,acc\nt+ ,/&>ds ,bo>d1 an   
organization creat$ to e/abli% & improve
 /&>ds ( ,/ate & local gov]nm5tal       
acc\nt+ & f9ancial report+1 vot$ to     

approve /atem5t ,no4 #fh1 ,acc\nt+ &    
,f9ancial ,report+ = ,p5sions1 improv+ !
 way ,/ate & local gov]nm5ts report _!  
p5sion liabilities & exp5ses1 & result+ 
9 a m fai?ful repres5tation ( ! full    
impact ( ^! obligations by report+ net  
p5sion liabilities on ! balance %eet    
7provid+ citiz5s & o!r us]s ( ^!        
f9ancial reports ) a cle>] picture ( !  
size & nature ( ^! f9ancial p5sion      
obligations72 ,:]eas ! adoption (       
,gov]nm5twide accrual acc\nt+ = budget+ 
& f9ancial report+ w\ld n infr+e on !   
explicit con/itutional p[] ( ,congress &
 its respective committees to           
appropriate & collect--?r\gh taxation1  
fees1 & borr[+--,f$]al funds det]m9$ on 
a ca%-fl[ basis1 necess>y = !           
collection1 disbursem5t1 & managem5t ( !
 ,unit$ ,/ates ca% res\rces2 & ,:]eas ! 
cont9u+ use ( ! ca% basis ( acc\nt+ = ! 
compilation ( ! annual budget           
sub/antially und]/ates ,f$]al exp5ses & 
annual budget deficits1 & ! use (       
modifi$ ca%-hybrid accrual acc\nt+ = !  

prep>ation ( ! ,unit$ ,/ates            
,consolidat$ ,annual ,f9ancial ,/atem5ts
 does n pres5t fairly1 nor accurately1 !
 f9ancial condition & results ( op]ation
 ( ! consolidat$ dep>tm5ts & ag5cies ( !
 ,unit$ ,/ates3 ,n[1 !re=e1 be x  ,t !  
,h\se ( ,repres5tatives--  7#a7 agrees  
to consid] legislation to implem5t      
accrual basis g5]ally accept$ acc\nt+   
pr9ciples = ,unit$ ,/ates ,gov]nm5t     
budget+1 f9ancial report+1 & p]=mance   
measures2  7#b7 ackn[l$ges t ! use (    
accrual basis acc\nt+ = ,unit$ ,/ates   
,gov]nm5t budget+1 f9ancial report+1 &  
p]=mance measures w\ld provide a m      
accurate measure ( ! ,unit$ ,/ates      
,gov]nm5t's f9ances & _! impact on !    
,nation's economy2  7#c7 reque/s !      
,comptroll] ,g5]al ( ! ,unit$ ,/ates to 
prescribe ! mann] 9 :i* accrual bas$    
g5]ally accept$ acc\nt+ pr9ciples c be  
appli$ to ,unit$ ,/ates ,gov]nm5t       
budget+1 f9ancial report+1 & p]=mance   
measures 9 ! fiscal ye> foll[+ ! passage
 ( legislation to implem5t ! re=ms      

outl9$ 9 ?is resolution2 &  7#d7        
recognizes ! use ( accrual acc\nt+ /&>ds
 9 ! ,f$]al ,gov]nm5t c assi/ 9         
managem5t improvem5t = ! ag5cies &      
dep>tm5ts ( ! ,f$]al                    
,gov]nm5t--publiciz+ true co/s1 m9imiz+ 
gov]nm5t wa/e1 & controll+ ineffici5t   
sp5d+1 especially on long-t]m ,gov]nm5t 
contracts4