Governmental entity

Definition

A governmental entity is an organization established by a government to provide public services and enforce laws. Examples include federal, state, and local agencies or departments.

5 Must Know Facts For Your Next Test

1. Governmental entities follow specific accounting standards known as the Governmental Accounting Standards Board (GASB) guidelines.
2. These entities are accountable to the public and must provide transparent financial reporting.
3. They often deal with budgetary constraints and must manage funds appropriately to ensure efficient use of taxpayer money.
4. Governmental entities typically have different revenue sources compared to private businesses, such as taxes, grants, and bonds.
5. Financial activities in these entities include appropriations, expenditures, and fund accounting.

Related terms

GASB: The Governmental Accounting Standards Board sets accounting standards for U.S. state and local governments.

Fund Accounting: An accounting system emphasizing accountability rather than profitability, used by non-profit organizations and governments.

Appropriations: Legally authorized expenditure limits set by a legislative body for specific purposes within a governmental entity.