4 - State & Local Governments Flashcards
What is an appropriation?
An account created as a restriction of revenues
What is an encumbrance?
Specifically designated funds for a specific future purpose of goods or services
Ex: Like a purchase order
What is an expenditure?
An outflow of resources, usually money.
Can be capital or revenue items
What is the calculation for revenue reported at the fund level?
Step 1 - PY Revenue =
PY A/R - Allowance - Deferrals
Step 2 - CY Revenue =
Cash Receipts + 60 Day A/R - PY Revenue
How should property tax revenues be reported at the fund level?
Total tax levied * % collected for fiscal year and 60 day collection period after year end
Ex:
2,000,000 x 90% collection estimate (FY 2002 + Jan/Feb 2003)
What do program revenues consist of?
- charges for services
- restricted grants that are grant/program specific & contributions
Ex: building permits, garbage collection, and dog licenses (services provided by the city with fees paid directly for that service)
What are encumbrances used for? What fund would encumbrances be used in?
- budgetary control purposes
- governmental funds
What are considered governmental organizations for GASB reporting?
Corporate and political bodies that
1) elected or appoint officers by officials of other governments
2) potential of unilateral dissolution by a government with net assets reverting to a government
3) power to enact and enforce a tax levy
4) ability to issue debt directly that pays interest exempt from federal taxation
What is the budget entry for purchased goods?
What is the entry for those goods on receipt?
Budget:
db - Budgetary fund balance
cr - Encumbrances control
A/P Expense:
db - Expenditures control
cr - vouchers payable
How are direct operating, special & extraordinary, and indirect operating expenses reported in the statement of activities?
Direct - by function
Special & extraordinary - at the bottom of the statement of activities
Indirect - may be allocated to function but not required
What are general revenues?
- All taxes from taxpayers to the government
- Unrestricted grants or contributions
How do the governmental funds report interfund transfers?
Other financing uses & sources
What is interperiod equity?
CY revenues pay for CY services/expenses
What is the measurement focus of governmental funds?
- Flow of financial resources or changes in financial position
- Financial position
When is the revenues control account credited?
When property taxes are levied
db - Property tax receivable
cr - Estimated revenues control
