According to GASB, which type of accountability is excluded from general-purpose external financial reporting?

GASB, or the Governmental Accounting Standards Board, categorizes various types of accountability relevant to public sector financial reporting. Policy accountability is focused on the organization's strategic objectives and decisions made by management. It emphasizes the achievement of goals outlined by public policy.

In general-purpose external financial reporting, the focus is primarily on providing transparency and accountability of financial transactions and resource management. The categories of probity and legality, performance, and program accountability all relate directly to the integrity of financial practices, the effectiveness of programs, and the results achieved compared to established standards or objectives. These forms of accountability allow stakeholders to assess the efficiency, legality, and impact of governmental operations.

By contrast, policy accountability does not fit as neatly into the external financial reporting objectives, which prioritize financial health and programmatic outcomes rather than underlying policy decisions. Thus, it is excluded from the general-purpose external financial statements that serve to inform stakeholders about the financial position and results of operations of governmental entities.