29. Govt Flashcards
Assess prop tax je: 2100 were billed, 300 expected uncollectible
Dr prop tax receivable 2100
Cr allow uncollectble 300
Cr revenues 1800
Cr deferred rev 0
Billing of bus license 300
No entry till received When received:
Dr cash 300
Cr revenue 300
Collection of prop tax 1900 and wrote off 200
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
Encumbrance - amt expected to spend
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
Encumbrance - po/bill Appropriation (budgetary acct)- cr when budget set up, and dr when close out Expenditure - collection
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
Computer never came and closing of books
???
Close budget entries: Dr. appropriation Dr est other fin use Dr budgetary fund bal unreserved Cr est revenue
GASB’s reports Objectives:
Accountability
- Citizenry
- Legislative and oversight bodies
- Investors and creditors
GASB’s fin/reports used for:
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
GASB’s report Basic Characteristics are:
RRC - reliability, relevance, consistency
CUT- comparability, understandability, timeliness No fairness
GASB’s reporting objectives:
- Accountability
- Eval op results
- Govt entity ability to meet it’s obligation
Not: the cost of providing svcs or admin
Gasb 7 elements of f/s
- Assets - resources
- Liabilities - obligation
- Deferred outflow of resources
- Deferred inflow of resources
- Net position( net assets): residual Resource flows stmts:
- Outflow of resources: consumption
- Inflow of resources: acquisition
Private revenues vs Govt revenues
- earned and realizable
- measurable and available
Govt:
- modif accrual: current resources
- accrue for prop tax and grants
- expenditures
- budget compliance goal
Fund balance: - restricted: by const, resource provide, legislation - committed - encumbrance - assigned - intent - unassigned
Assigned - intent
Revenues
- exchange transactions
- Non exchange trans (4 types)
1 derived tax revenue: sales Tax, inc tax
- Imposed non exchange transactn: prop tax, fine, lic, permit
- Govt mandated non exch trans: fed grant from one level to another
- Voluntary non exch transact: unrestricted grant and donations
Prop tax je
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
Restricted (when spent) and
non-rest grant (when approvd) revenue je
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
Encumbrance
- actual legal commitment req for bal be reserved.
- expenditures + open encumbrance = appropriation
- remaining bal or funds avail = approp - encumb - enxpenditures
Revenue set up budget
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)
II. Financial section
- 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)
- Govt-wide f/s statements:
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
Fund f/s Statements:
- Govt - modif accrual
- Proprietary - accrual
- Fiduciary - accrual
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
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
- General fund
- Special revenue fund
- Debt service fund
- Capital projects fund
- Permanent fund
Proprietary funds types - Accrual (Depreciation recording)
- Internal Service Funds.
- Enterprise Fund/Business type Outside - net income
Fiduciary funds types
- Pension TF
- Investmt TF
- Private purpose TF
- Agency: A=L
