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Question 1

what are the categories of fund bal.?

“NU CAR”

Answer 1

• Nonspendable
  (PPD expend’s, inv)
• Restricted
  (by ext. auth. - laws + users)
  (also by debt covenants)
• Commited
  (A’s obl’d by highest auth.)
• Assigned
  (A’s intended for obl., informal)
• Unassigned
  (spendable, only G fund has positive bal of this)

Question 2

what happens when there is a deficit in the restricted funds?

Answer 2

the amt will reduce unassigned fund bal.

Question 3

when are grants recog’d as rev, def’d inflow, and unearned rev?

Answer 3

• rev = time + eligibility req’s
• def’d inflow = eligbility req’s
• unearned rev = none met

Question 4

should def’d inflows be recog’d when prop. T/R are recog’d in advance of year they are levied and prop. taxes collected in advance of the year they are levied?

Answer 4

yes:

prop T/R:
Dr: prop. T/R
Cr: def’d inflows

prop taxes collected:
Dr: cash
Cr: def’d inflows

Question 5

does the encumbrance account only include o/s PO’s?

Answer 5

yes

Question 6

what is the JE when gen. fund owes E fund for electricity bills?

Answer 6

Dr: expend’s
Cr: due to E fund

Question 7

what type of expend’s and rev’s are in “G” fund?

Answer 7

• rev = taxes, public safety + reg, intergov, charges for svc’s, other rev’s
  (all for ben. of public)
• expend = gen gov, public safety, culture + recreation
  (for ben. of public)

Question 8

what is the formula for GRSPP BS?

Answer 8

CA + def’d outflow
= CL + def inflow + fund bal.
(NU CAR)

Question 9

what are “R” funds?

Answer 9

• legally restricted/committed for special purp’s other than debt svc and cap proj
• rev = (sales+gas tax, special fees, grant funds)
• expend = CY op expend + cap outlays (lease)

Question 10

what are the specifics for grants?

Answer 10

monitored = “R” fund

non-monitored = “A” fund

Question 11

when are “S” funds used?

Answer 11

to pay off debts of GRSPP and used when there is a legal mandate
(if not, use “G” fund)

Question 12

where do non-expendable trusts go in fund FS’s?

Answer 12

private purp trust funds

Question 13

is there encumbrance accounting for perm. funds?

Answer 13

no, but BA are the same
(“S” fund doesn’t have “E” either)

*Perm funds only have int. avail for public spending, while “R” funds have both
“P” + int

Question 14

are bond issue costs and other debt issue costs accounted for as debt svc expend’s?

Answer 14

yes

Question 15

what are the JE amt’s for FA’s in gov-wide FS’s?

Answer 15

• purch + constr = at cost
• cap lease = PV lease pmt
• donated = FMV
• forfeiture = LCM

Question 16

what is the reporting for bond antic’d notes (BANs)?

Answer 16

• if entity has ability and intent to refinance, Cr: OFS

- if entity only has intent, but not ability, Cr: bond antic N/P

Question 17

what constraint under GASB 54 imposes an internal limitation on use of equity/assets of a gov. fund estab’d by highest internal gov. auth?

Answer 17

committed funds

Question 18

should internal svc funds be considered in the eval. of major and nonmajor funds?

Answer 18

no, they are not included

Question 19

what are some functions of an operating budget?

Answer 19

• anticipate est. rev’s and appropriate them for CY op’s

- commit funds for the gov. entity’s op’s for NY

Question 20

is the life of cap. proj funds short? and what is the construction period limited to?

Answer 20

• yes, it is short

- constr period is limited to 1-3 years