ACCOUNTING SYSTEMS OF LOCAL GOVERNMENTS MUST BE ABLE TO PROVIDE FINANCIAL INFORMATION ABOUT THEIR ACTIVITIES TO OFFICIALS, TAXPAYERS, THE BUSINESS COMMUNITY, AND STATE AND FEDERAL AGENCIES. THIS VOLUME CAN BE USED TO IMPROVE THE INITIAL RECORDING OF DATA, ACCOUNTING FOR MUNICIPAL FUNDS, THE MUNICIPAL BUDGET, ACCURACY OF FINANCIAL STATISTICS, AND THE RELIABILITY OF REPORTING TO THE PUBLIC ON MUNICIPAL FINANCIAL MATTERS. THE CLASSIFICATION OF ACCOUNTS COMPLIES WITH THE RECOMMENDATIONS OF THE NATIONAL COMMITTEE ON GOVERNMENT ACCOUNTING SO THAT FINANCIAL INFORMATION WILL BE READILY AVAILABLE FOR REPORTS REQUIRED BY THE BUREAU OF THE CENSUS AND THE OFFICE OF REVENUE SHARING. BASIC ACCOUNTING PRINCIPLES ARE DESCRIBED, WITH EMPHASIS ON THE ACCUMULATION OF ACCOUNTING INFORMATION. TOPICS COVERED INCLUDE DOUBLE ENTRY BOOKKEEPING, DEFINITIONS OF COMMON ACCOUNTING TERMS, FUND ACCOUNTING, RECORDING OF A BUDGET, AND TYPICAL JOURNAL ENTRIES FOR TRANSACTIONS. THE ACCOUNTING PROCESS IS OUTLINED, WITH SPECIAL ATTENTION TO THE INTERPRETATION OF ACCOUNTING ENTRIES AND THEIR EFFECTS ON ACCOUNTING RECORDS. A CODING SYSTEM FOR THE GENERAL LEDGER AND BUDGETING PROCEDURES FOR LOCAL GOVERNMENTS ARE DETAILED. FINALLY, THE FUNCTION OF ACCOUNTING IN RELATION TO CURRENT PLANNING AND CONTROL IS EXAMINED, FOCUSING ON COST ANALYSIS AND MANAGEMENT ACCOUNTING SYSTEMS USED TO CONTROL COSTS. SUMMARIES, REVIEW QUESTIONS, AND SAMPLE PROBLEMS ARE PRESENTED AT THE END OF EACH CHAPTER. A GLOSSARY OF ACCOUNTING TERMS IS PROVIDED. ORGANIZATIONAL CHARTS, GRAPHS, AND OTHER ILLUSTRATIONS ARE INCLUDED. (MJM-AUTHOR ABSTRACT MODIFIED)