If a state law requires that local governments prepare General Fund and special revenue fund budgets on a basis that differs from the basis of accounting required by generally accepted accounting principles (GAAP)

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Since the state law requires local governments to prepare budgets on a basis different from GAAP, the actual amounts in the budgetary comparison schedule should also be reported using the government's budgetary basis. This ensures that the comparison is made on a consistent basis, providing meaningful information to users. However, it is important to note that the financial statements must still be prepared in accordance with GAAP, and any differences between the budgetary basis and GAAP should be disclosed in the notes to the financial statements.

If a State Law Requires That Local Governments Prepare General