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Wadsworth GOP Rep. Jim Renacci wants the federal government to provide a more accurate picture of its budget.

(Sabrina Eaton/The Plain Dealer)

WASHINGTON, D.C. -- Spending three years in Congress has convinced Wadsworth GOP Rep. Jim Renacci that any company that keeps its books the way the federal government does would go out of business.

That's why Renacci, a certified public accountant who ran numerous businesses, wants the federal government to include all its assets and liabilities on its financial statements.

He argues that leaving government liabilities like the Social Security and Medicare trust funds off the balance sheet makes it harder for Congress to understand the nation's fiscal situation so it can balance the budget and address growing debts.

"As a CPA and former business owner for nearly 30 years, I know how critical it is to have the financial information necessary before making a decision about how to best move an organization forward," said a statement from Renacci. "In Washington, we know that our current path is unsustainable, but do we really know where we stand fiscally? The answer is that we don't, and neither do the American people thanks to the federal government's incomplete financial statements."

A bill Renacci introduced on Tuesday with Delaware Democratic Rep. John Carney would make changes in an organization called the Federal Accounting Standards Advisory Board (FASAB), which sets the accounting standards the Treasury Department uses to compile the nation's financial statements.

FASAB is composed of six members from the public and three members from each of FASAB's sponsoring federal agencies: the Treasury Department, Office of Management and Budget, and the Government Accountability Office.

Renacci's legislation would add an extra public member to the accounting standards advisory board and remove the Treasury Department's voting rights on the board. Renacci believes the Treasury Department should not be allowed to vote on the standards it will have to implement.

If the Treasury Department failed to comply with a standard set by FASAB, Renacci's bill would require it to submit a public report explaining its deviation.

To further ensure FASAB's independence, Renacci's bill would require that it be funded through a small user fee on the sale of Treasury securities rather than its current method: voluntary contributions from the Treasury Department, OMB and GAO.

Renacci believes that a more independent FASAB will end up making changes that will give the nation a better picture of its finances.

His proposal, which will be referred to the House Committee on Government Oversight and Reform, is backed by the American institute of CPAs and the Committee for a Responsible Federal Budget, and is cosponsored by several other Congress members, including Russell Township GOP Rep. Dave Joyce.

"As we work to put our debt on a downward path, we need the most comprehensive information about the long term liabilities and overall financial condition of the United States government, and giving FASAB greater independence and accountability will help achieve that goal," said a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Government.