Yep. In addition, the reverse is actually true: at the federal level, many agencies are not required to use GAAP. In layman's terms, they aren't required to account for things in the way most businesses are. Common sense does not hold. If the Pentagon says 1+1=3? It equals 3. It's an odd world where money is appropriated to be spent. That's it. The rest of it is smoke and mirrors.
The smaller you are, the more "downhill" you are from the folks making the important regulations, and the more you're required to adhere to strict and closely monitored books. (Corruption still happens, of course, but at least there are numbers that add together and some form of reasonable audit trail for financial events. And don't get me started about whether or not good accounting principles have anything at all to do with good governance)
(I could also tell personal stories from my time with the federal government, and there are plenty more links to find for those interested. The point is that more political power and money movement, at least in the states, usually is associated with fewer and less reliable financial controls, which is counter-intuitive)
The smaller you are, the more "downhill" you are from the folks making the important regulations, and the more you're required to adhere to strict and closely monitored books. (Corruption still happens, of course, but at least there are numbers that add together and some form of reasonable audit trail for financial events. And don't get me started about whether or not good accounting principles have anything at all to do with good governance)
ADD: Here's a link for reference: http://www.cnn.com/2016/08/23/politics/us-army-audit-account...
(I could also tell personal stories from my time with the federal government, and there are plenty more links to find for those interested. The point is that more political power and money movement, at least in the states, usually is associated with fewer and less reliable financial controls, which is counter-intuitive)