12/5 Chapter 18 Flashcards
general fund
all governments have a general fund
revenue sources
tax
redevelopment agency
certain resources are used in this to fund the redevelopments, raised by incremental property tax
capital project fund
for each project there is a fund
permanent fund
cemetery is an example, the principal is left alone
proprietary funds
Enterprise Funds - trying to break even
Recreation fund
18-2
summarizes the different types of fund, look at slides
accrual method
method businesses use
modified accrual method
they don’t keep capital assets and long term debt, it is mainly for short term, what we can spend we have to be able to get it within 60 days, deferred inflow of resources
deferred outlfow
deferred charge, bond issuance cost, deferred loss
government funds
have budgets
general fund
all activities should be accounted for in the general fund unless specifically required by law or
the nature of the activities is proprietary
it is a catch all
reserve in fund balance must be
kept at a 25% of all revenue level
special revenue fund
purpose: to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specific purposes
with the exception of inflows for cap projects and expendable sources
two statements in gov fund
balance sheet
the statement of revenues, expenditures, and changes in fund balance(operating statement)
net income is increase in fund balance
capital project fund
to account for financial resources used for the acquisition or construction of major capital facilities
except of those financed by
proprietary fund, and
trust funds
a temporary fund related to an acquisition
at completion
the fund is closed
the cost is recorded as a capital asset in the GCA-GLTL general ledger
outflows - costs incurred during construction are charged to expenditures
we don’t record
fixed assets or depreciation
revenues
bond proceeds, etc
debt service fund
to account for the servicing of debt initially recorded as a liability in the GCA-GLTL
examples of general long term debt obligations
serial bonds term bonds special assessment bonds notes and warrants capital leases
look at page 906 and 907
for calculations know it, on test maybe
revenue
expenditures
fund balance
the financial statements
major funds
listed in their own column
proprietary fund statements
statement of net assets(balance sheet)
statement of cash flows
noncapital, and capital
…….
internal service funds
to account for activities that provide services solely for governments
