IN PRIVATE BUSINESS, RESOURCES ARE DIRECTED TOWARD THE PRODUCTION OF PROFIT; IN GOVERNMENT, RESOURCES ARE COMMITTED TO THE PROVISION OF SERVICES FOR CITIZENS, WHICH ARE NOT EASILY MEASURED IN PROFIT TERMS. THE NUMEROUS DIFFERENCES BETWEEN PRIVATE BUSINESS AND GOVERNMENTAL ACCOUNTING AND REPORTING RESULT FROM FUNDAMENTAL MODEL AND MEASUREMENT DIFFERENCES. WHEREAS FINANCIAL DECISIONS IN PRIVATE BUSINESS ARE BASED ON PROFIT MARGINS, DECISIONS IN GOVERNMENT ARE BASED UPON WAYS TO RAISE REVENUE TO PROVIDE NEEDED SERVICES AND THE MANAGEMENT OF COSTS WITHIN THE BOUNDARIES OF ANTICIPATED REVENUES. GOVERNMENT ACCOUNTING AND FINANCIAL REPORTING SHOULD BE DESIGNED TO ASSIST IN SUCH DECISIONMAKING. ACCOUNTING AND FINANCIAL REPORTING CAN BEST DO THIS BY PROVIDING DATA ON FISCAL COMPLIANCE; FINANCIAL VIABILITY AND SERVICE RESULTS; ECONOMIC RESOURCES, OBLIGATIONS, EQUITY, AND CHANGES IN THE SAME; SERVICES RENDERED; MANAGEMENT STEWARDSHIP AND PERFORMANCE; AND MANAGEMENT EXPLANATIONS AND INTERPRETATIONS. (RCB)