To: The United States Congress

We, the undersigned citizens of the United States, urge you to take immediate action to improve the transparency, accountability, and efficiency of how federal tax dollars are used. Specifically, we ask Congress to mandate that the Federal Accounting Standards Advisory Board (FASAB) adopt the best practices of full accrual accounting in the federal government’s financial reporting and budgeting processes.

Why This Matters

As taxpayers, we deserve to know exactly how our money is being spent, and we have the right to expect that the government’s finances are managed with the highest level of accountability and accuracy, the same level that is applied to private enterprise. Unfortunately, the federal government’s current accounting standards leave significant gaps in reporting the true financial position of the United States. We call for the federal government to use the same standards that every public company must use in their SEC filings, full accrual accounting.

Full accrual accounting, which is widely used in the private sector and by many state and local governments, provides a far more complete and transparent picture of financial performance. It accounts for all financial obligations—both current and future—by recognizing expenses when they are incurred rather than when cash changes hands. This system would ensure that:

1. The True Financial Position is Represented: The public can see the full liabilities of Social Security and Medicare in the Combined Financial Statements of the Federal Government.
2. Greater Transparency: Accurate reporting of all assets and liabilities would eliminate the current lack of clarity about the full extent of the federal government’s fiscal obligations.
3. Increased Accountability: Lawmakers and federal agencies would be held to a higher standard of responsibility by ensuring that future costs are reflected in current financial statements, promoting more sustainable budgetary practices.
4. Long-term Fiscal Planning: A shift to full accrual accounting will improve long-term budget forecasting, allowing policymakers to make more informed decisions about federal spending and fiscal policy.

The Need for Reform

Currently, the modified cash accounting system hides critical financial information, including future obligations, which can mislead policymakers and the public about the nation’s true fiscal condition. As a result, Congress and the American people cannot fully assess the long-term impact of government spending decisions, making it difficult to address rising federal debt and entitlement program costs.

By adopting full accrual accounting, we can create a more accurate, comprehensive, and transparent federal budget that reflects not only the government’s current spending but also its long-term fiscal responsibilities. This will allow for more informed decision-making, better resource allocation, and the reduction of waste and inefficiency in federal spending.

What We’re Asking Congress To Do:

1. Direct the Federal Accounting Standards Advisory Board (FASAB) to implement full accrual accounting for all federal financial reporting and budgeting.
2. Make full accrual accounting a requirement for all federal agencies and departments in their financial disclosures, including annual reports, budget proposals, and the U.S. Treasury’s Financial Statements.
3. Mandate that FASAB regularly review and update accounting standards to reflect best practices, ensuring continuous improvement in financial transparency and accountability in government.
4. Ensure the public has access to clear, comprehensive financial reports that include not only current-year expenditures but also the government’s long-term financial obligations.

Take Action Now!

We believe that this change is vital to restoring the public’s confidence in how our federal tax dollars are being spent and securing a financially sustainable future for our nation. It is time to bring full transparency to federal financial management.

We ask you to sign this petition and join the call for reform. Let’s make sure our government is accountable to the people it serves.

Sign the Petition Today!