Accountabilities 
The numerous environmental features discussed earlier result in distinct SLG (state and local government) accountabilities, which are unique both in terms of (1) to whom SLGs and their officials are accountable and (2) the focuses of their accountability. 
To whom Accountable 
The need for accountability exists between (1) SLGs and their constituents, (2) SLGs and other governments, and (3) the SLG’S own legislative and executive bodies.
1.	SLGs are accountable to their constituencies for various reasons. Elected officials are empowered by citizens to act on their behalf and are evaluated by voters on part of their fiscal and budgetary performance, as well as on the perceived efficiency and effectiveness with which the SLG is operated . Thus, SLG officials must demonstrate to citizens that revenues approved for specific purposes were in fact used for these purposes.
2.	The SLG’s accountability to other governments arises in part because senior levels of government often have some oversight authority over lower levels of governments. It also arises when other governments provide grants to the SLG.
3.	Accountability between each SLG’s legislative and executive bodies focuses on demonstrating that the fund restrictions and budget have been compiled with and that resources have been used efficiently and effectively.
Accountability focuses 
The financial reports for government-type activities focus on two types of accountability: fiscal and operational accountability.
Fiscal accountability is a government’s responsibility to demonstrate its compliance with public decisions about the raising and spending of public monies in the short-term. This accountability encompasses:
•	The use of financial resources from various revenue sources or bond issues in accordance with any restrictions on their use.
•	Compliance with fund and budget restrictions.
Operational accountability is a government’s responsibility to demonstrate the extent to which it has met its operating objectives and whether it can continue to meet its objectives in the foreseeable future. This accountability results in a government providing: 
•	A measure of the economic costs of providing services (operating costs).
•	An assessment of whether a government is raising sufficient revenues each period to cover the cost of providing services (operating results).
•	An assessment of whether services are being approved economically and efficiently.