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The State of York operates on a calendar year basis. Rocky Feller, the governor, is particularly proud of his reputation for making sure the state lives within its means. He knows that revenues in 2012 are coming in at a slower pace than anticipated, and he fears that expenditures may exceed revenues for the first time in his tenure as governor. He seeks advice from his budget director, who says: No problem. I'll just tell the agencies not to send invoices for utilities, travel expenses, and professional ser-vices to the comptroller during November and December for payment. Because the state uses the modified accrual basis of accounting, the comptroller won't charge the bills to 2012. The elected state comptroller is responsible not only for paying the bills, but also for preparing financial statements in accordance with GAAP. What should the comptroller do when he learns about the budget director's idea?
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