New York State Financial Accounting standards are used in the EXECUTE and EVALUATE phases of the financial cycle. Standards are established in the following categories:

• Minimum Financial Reporting Requirements;
• Basis of Accounting; and
• Cash and Basic Financial Statements.

An important element of financial accounting and reporting is the operation and maintenance of an accounting system that permits the collection of information necessary in the preparation of annual and interim financial statements; facilitates the comparison of information from different agencies, funds and programs; and assures the accuracy and reliability of accounting information.

Paragraphs 9 and 9-a of Section 8 of the State Finance Law prescribes the minimum reports that are required to be prepared on both a budgetary (cash) and GAAP basis of accounting.

Section 22 of the State Finance Law requires that the State budget be balanced on a cash basis, which is DOB’s primary focus in preparing and implementing the State financial plans. State Finance Law also requires the financial plan be presented for informational purposes on a GAAP basis. The GAAP-basis plans model, to the extent practicable, the accounting principles applied by OSC in preparation of the annual financial statements.

Guide to Financial Operations

REV. 01/01/2017