Concepts CH 19 Flashcards
Statement of Changes in Fiduciary Net Position reports
Total Additions
Total Deductions
Change in Net Position
Agency Fund
Does not have net position Assets = Liabilities
Bond anticipation notes that don’t meet both requirements for Gen LT obligation are reported in
Governmental Fund - in which proceeds are recorded
Government-wide F/S stmt of net position
Assets and Liabilities of Proprietary Funds (including capital leases)
Are reported and accounted for in that fund on accrual basis
Non-Current Liabilities of governmental funds should be reported in
Government-wide statements of net position only in governmental activities column
Preparation of Government-wide F/S require
certain interfund activity and fund balances be eliminated or reclassified. These amounts are eliminated from business-type and governmental columns of the statement of net position. Exceptions are residual amounts due between the two types of activities.
Unrestricted net position of government-wide statement of of net position includes
Net investment of capital assets
Restricted net position
unrestricted net postion (may include internally committed or assigned but not reported in F/S)
Net Investment in Capital assets in government-wide statement of net position include
Capital asset net of depreciation, reduced by outstanding debt
Significant transactions or other events that are either unusual or infrequent but not within management control
should be disclosed in the notes to government wide statement of activities
Government-wide statement of activities reports
Net(expense) revenue for each function equal to expenses minus program revenues
The minimum level of detail for activities are by function and different identifiable activities
Fiduciary Fund Payable/Receivable Reclass
Receivables/Payable from Fiduciary funds are reclassed as rec/pay to external parties because fid funds report only balances held for individual, private org, and other governments
General LT Liabilities may include
Capital and Operation Leases Compensated Absences Claims and judgements pension Termination Benefits Landfill Closure & post closure care Other commitments that are not current liabilities recorded in governmental funds
Government-wide separately stated at bottom of statement of activities
Contribution endowments
Contribution to permanent fund principal
Transfers between business-type and governmental activities
Special and Extraordinary items
Extraordinary items
unusual in nature and infrequent in occurence
Special items
Unusual or infrequent but not both
Within Control of management
Liabilities due in current period
Are reported in governmental fund financial statements therefore not a reconciling item
Included in government-wide statement of net position governmental activites if not financed through enterprise funds
General obligation bonds
Compensated absences
Salaries payable
Fiduciary Fund type that may be expendable or nonexpendable
Private-purpose trust fund
Expendable - use of principal
Non-expendable - income used only
Fiduciary Funds f/s report
Separate column for each fund type
Definition of Agency Fund
Fiduciary funds that may account for certain grant and other financial assistance to be spent on behalf of secondary recipients. The fund acts purely as a conduit
Fiduciary Fund Net Position Includes info about
Net position is presented as
Sum of assets & Deferred outflows
Sum of liabilities and Deferred inflows
In government-wide statement of activities reports program revenues
Charges for services
Program specific operating grants and contributions
Program specific capital grants and contributions
Also:
Earnings from endowments
Permanent fund investments
Other investments restricted to given program
Which of the following are presented in the prop fund statement of net position
deferred inflows and deferred outflows
Fiscal Accountability
Responsibility of governments to justify that their actions currently comply with public decisions concerning the raising and spend of public resources in the short term
Operation Accountability
Government’s responsibility to report the extent to which it has met accounting objectives efficiently and effectively using all resources available, and whether it can contribute to do so in the near future
State and local governments should disclose
1) Legal and contractual restrictions on resources
2) Risks of potential loss of those resources
Disclosure relates to the objective of helping users assess
1) Services that can be provided
2) Entity’s ability to meet obligations as they come due
Cash Flow statements proprietary funds
must be prepared using the direct method
Fiduciary funds provide information about
operational accountability
Fiduciary Funds account for
Resources held by government in trust or as agent for
1) Specific individuals
2) Private Organizations
3) Other governments
Separate statements of fiduciary net position and changes in fiduciary net position should be presented for
Each such fund
A defined contribution pension plan must report
1) a plan description, (2) a summary of significant accounting policies, and (3) information about investment concentrations.
General Revenues
All taxes, including those levied for special purpose are general revenues
Program Revenues
1) Charges for services
2) Program specific operating grants and contributions
3) Program specific capital grants and contributions
They may include earnings on
1) Endowments
2) Permanent fund investments
3) other investments restricted to a given program
Not Program Revenues
Earnings of endowments or permanent funds that finance general fund programs or operating expenses
Preparation of government wide statement of activities requires
elimination or reclassification of certain interfund activity. Transfers or receivables and payables are are eliminated between governmental and business-type activities columns of the statement of net position The exceptions are net residual amounts between the two types of activities
Infrastructure - Modified Approach
Allows government to record maintenance costs instead of depreciation
General LT Liabilities are defined as
Liabilities not directly related to, and not expected to be paid from, proprietary or fiduciary funds
General LT liabilities are reported only
in governmental activities column of government-wide statement of net position
deferred outflow of resources is
a consumption of net assets that applies to a future reporting period.
deferred inflow of resources is an
an acquisition of net assets that applies to a future reporting period.
General revenues are not required to be reported as
program revenues. They are reported separately after total net (expense) revenue for all functions.
All taxes, including those levied for a special purpose, are general revenues.
General revenues are reported at the bottom of the statement of activities to determine the change in net position for the period.
In a proprietary fund’s statement of revenues, expenses, and changes in fund net position, transfers should be reported separately after
nonoperating revenues and expenses. This component includes (1) capital contributions, (2) additions to endowments, and (3) special and extraordinary items. Transfers are presented as the final item before the change in net position.
Receipt of a state appropriation is recognized as a
revenue from a government-mandated nonexchange transaction. This kind of transaction occurs when one government provides resources to a government at another level and requires that they be used for a specific purpose.
General Fund - Capital Lease
Treated as expenditure for the full amount of lease payments
