29. Govt

Question 1

Assess prop tax je: 2100 were billed, 300 expected uncollectible

Answer 1

Dr prop tax receivable 2100

Cr allow uncollectble 300

Cr revenues 1800

Cr deferred rev 0

Question 2

Billing of bus license 300

Answer 2

No entry till received When received:

Dr cash 300

Cr revenue 300

Question 3

Collection of prop tax 1900 and wrote off 200

Answer 3

Dr cash 1900

Cr tax receivable 1900

Over collection

Dr allow for uncoll 100

Cr revenues 100

Write off

Dr Allow uncollectble 200

Cr tax receivable

Question 4

Encumbrance - amt expected to spend

Answer 4

1. PO:

Dr encumbrance

Cr reserve for encumb-Budgetary Fund Bal

2. Receive goods and bill:

Dr. reserve for encumb

Cr. Encumbrance

Dr. expenditures

Cr. Vouchers payable or cash

3. Receive goods and cost overrun bill: Reverse encumbrance at encumbered amt 1500

Dr expenditures 3000

Cr voucher payable/cash

Question 5

Encumbrance - po/bill Appropriation (budgetary acct)- cr when budget set up, and dr when close out Expenditure - collection

Answer 5

Expect to spend.

Legal commitment req fund bal be reserved Authorized to spend for budget Expenditures actual cost Intent- assigned

When approp exceeds expenditures, the excedd is closed into unreserved fund balance.

This cr is to cr r/e

Question 6

Computer never came and closing of books

???

Answer 6

Close budget entries: Dr. appropriation Dr est other fin use Dr budgetary fund bal unreserved Cr est revenue

Question 7

GASB’s reports Objectives:

Accountability

Answer 7

1. Citizenry
2. Legislative and oversight bodies
3. Investors and creditors

Question 8

GASB’s fin/reports used for:

Answer 8

ACE F/S:

Actual fin results vs legal adopted budget

Compliance w laws and reg

Efficienty and effectiveness eval

F/s asses fin condition and results of ops

Question 9

GASB’s report Basic Characteristics are:

Answer 9

RRC - reliability, relevance, consistency

CUT- comparability, understandability, timeliness No fairness

Question 10

GASB’s reporting objectives:

Answer 10

1. Accountability
2. Eval op results
3. Govt entity ability to meet it’s obligation

Not: the cost of providing svcs or admin

Question 11

Gasb 7 elements of f/s

Answer 11

1. Assets - resources
2. Liabilities - obligation
3. Deferred outflow of resources
4. Deferred inflow of resources
5. Net position( net assets): residual Resource flows stmts:
6. Outflow of resources: consumption
7. Inflow of resources: acquisition

Question 12

Private revenues vs Govt revenues

Answer 12

• earned and realizable
• measurable and available

Govt:

• modif accrual: current resources
• accrue for prop tax and grants
• expenditures
• budget compliance goal

Question 13

Fund balance: - restricted: by const, resource provide, legislation - committed - encumbrance - assigned - intent - unassigned

Answer 13

Assigned - intent

Question 14

Revenues

1. exchange transactions
2. Non exchange trans (4 types)

Answer 14

1 derived tax revenue: sales Tax, inc tax

2. Imposed non exchange transactn: prop tax, fine, lic, permit
3. Govt mandated non exch trans: fed grant from one level to another
4. Voluntary non exch transact: unrestricted grant and donations

Question 15

Prop tax je

Answer 15

Dr prop tax receivable 2200

Cr rev. (up to 60 days after fye) 1850

Cr deferred rev. (after 60 days) 225

Cr allow for uncollectible 125

Dr deferred rev. 225

Cr revenues 225

Dr cash 2200

Cr prop tax receivble 2200

Dr allow for uncollectible 125 write off

Cr prop tax receivable Delinquent

Dr prop tax receivle delinquent 100

Cr prop tax receiv current 100

Dr allow uncollecti 100

Cr allow uncollectible delinq 100

Question 16

Restricted (when spent) and

non-rest grant (when approvd) revenue je

Answer 16

Restricted- record when spent:

Dr cash

Cr deferred revenue

Dr deferred revenue

Cr revenue

Unrestricted- record when approved:

Dr receivable grant

Cr revenue

Dr cash

Cr receivable grant

Question 17

Encumbrance

Answer 17

• actual legal commitment req for bal be reserved.
• expenditures + open encumbrance = appropriation
• remaining bal or funds avail = approp - encumb - enxpenditures

Question 18

Revenue set up budget

Answer 18

Dr est. Rev.: prop tx, lic, grant (intergov rev)- budget acct

Dr. est. Other fin sources: bonds and op tfer ins- budget acct. BIC - expenditures.

Cr budg fund bal - unreserv : anticipated activ but no actual comitmt

Cr Appropiation (authorized to spend) -budget act

Cr est other fin sources (assist other dept)

Question 19

II. Financial section

Answer 19

• auditors report
• MDA
• govt-wide f/s - basic f/s
• fund f/s - basic f/s
• notes to f/s - basic f/s
• RSI (bcs)

Question 20

1. Govt-wide f/s statements:

Answer 20

Accrual and Economic Resources (not current f/resources):

• stmt of net position (assets at CV or net inv in cap assets which are ⬇️ by AD, Obl and Liab)
• stmt of activ Asset + def outflow- L - def inflow = net position (restricted net pos and unrestricted net pos) Govt activ + bus type activ = total and discretely presented components units

Question 21

Fund f/s Statements:

1. Govt - modif accrual
2. Proprietary - accrual
3. Fiduciary - accrual

Answer 21

1. Governmental funds:

• b/s
• stmt of rev, expenditures, and change in fund bal

2. Proprietary:

• stmt of net position
• stmt rev, expenses, snd change fund net position
• CF: 1)op, 2)inv, 3)non-cap fin related, 4)cap related fin

3. Fiduciary:

• stmt of fiduciary net pos
• stmt of change in fiduciary net pos

Question 22

Governmental funds types - All modified accrual (so no depreciation recording)

Stmt of revenues, expenditures,…

Bond interest are not accrued - expenditures

police cars are not Assets or cap - expenditures

Answer 22

1. General fund
2. Special revenue fund
3. Debt service fund
4. Capital projects fund
5. Permanent fund

Question 23

Proprietary funds types - Accrual (Depreciation recording)

Answer 23

1. Internal Service Funds.
2. Enterprise Fund/Business type Outside - net income

Question 24

Fiduciary funds types

Answer 24

1. Pension TF
2. Investmt TF
3. Private purpose TF
4. Agency: A=L