Governmental GAAP requires state and local governments to present a reconciliation of the fund financial statements to the government-wide statements as part of the basic financial statements.
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Governmental GAAP requires state and local governments to present a reconciliation of the fund financial statements to the government-wide statements as part of the basic financial statements. These two reconciliations-one for the balance sheet and one for the statement of revenues, expenditures, and changes in fund balances-explain the reasons for the specific differences caused by using different measurement focuses and bases of accounting in the two sets of statements. The reconciliations may be presented either at the bottom of the fund financial statements or in accompanying schedules.

Governmental GAAP Requires State and Local Governments to Present a Reconciliation