F10 Flashcards
What is the purpose of the Internal Service Fund
to finance and account for services and supplies provided to other departments within a governmental unit or to other governmental units
What are some of the typical revenue sources for internal service funds
restricted revenue grants Operating Revenues (billings for services provided) Nonoperating Revenues (interest earnings)
What is the purpose of the enterprise fund
Account for the acquisiton and operation of governmental facilities and services that are intended to be primarily (>50%) self supported by user charges and fees
What are some of the typical revenue sources for enterprise funds (Operating and non-operating)
Operating Revenues: Charges for services (utility fees, patient fees, tuition, etc..)
Non Operating Revenues: Shared/Grant Revenues, and investment income
What are the required fund financial statements for the individual proprietary (SE) Fund types
SE Funds Require: Balance Sheet-Statement of net position Income Statement-statement of revenues, expenses, and changes in fund position Statement of cash flows Footnotes
What is the basic structure of the statement of net position for the proprietary fund (SE)
(Assets + Deferred Outflows of Resources) - (Liabilities + Deferred Inflows of Resources) = Net Position
What is the basic structure of the statement of revenues, expenses, and changes in net position for the proprietary funds (SE)
Operating Revenues (revenues by major sources) (Operating Expenses) =Operating Income (loss) Non-Operating Revenues (expenses) =Income or loss before contributions and transfers \+Capital Contributions Transfers =Change in Net Position Total NEt Position (beginning) =Total Net Position (Ending)
What is the basic structure of the statement of cash flows for the proprietary fund (SE) note the order is reversed of something within here
Cash flows from Operating Activities NonCapital Financing Activities Capital and related financing activities Investing activities
What is the purpose of the pension trust fund
it accounts for government sponsored defined benefit and defined benefit contribution plans
What is the purpose of the custodial fund
collects cash to be temporarily held for someone whom it will later be disbursed to.
What is the purpose of the private purpose trust fund
it’s the designated fund for reporting all other trust arrangements under which the principal and income are for the benefit of specific individuals, private orgs, and/or other govts
What is the purpose of the investment trust fund
account for external investment pools sponsored by governmental entities…like the state govt acting as an investment agent for counties and cities
What are the required fund financial statements for the individual fiduciary fund types (CIppoe)
Balance Sheet- Statement of fiduciary net position
Income Statement-Statement of changes in fiduciary net position
Footnotes
What is the basic structure of the statement of changes in fiduciary net position for the fiduciary funds
Additions LESS: Deductions \+/- Changes in Net Position Net position- Beginning of the year =Net position end of the year
What are the two important types of governmental accountabiltiy
Operational accountability
Fiscal accountability
What is a CAFR? What 3 sections does it include
CAFR = Comprehensive Annual Financial Report
Includes an Introductory Section, Basic Financial Statements and required supplemental info per GASB 34, and a statistical section
What sections of the external financial reporting model represent the basic financial statements
Government-Wide Financial Statements
Fund Financial Statements
Notes to the financial statements
What types of external reports meet the accountabiltiy objectives of government (operational and functional accountablity)
Operational Accountability: Government wide financials
Fiscal Accountability: Fund Financial Statements
A primary government includes any govt. that meets SELF, what is self
state, city, county or juristriction that can stand by itSELF:
Separately
Elected boards
Legally separate entity
Financially self-sufficient
Define a component unit
organization which the elected officials of the primary govt. are financially accountable or has a relationship with the primary govt. which cannot be left out of the financial statements
What are two methods which are available for reporting component units of a primary govt. in the primary govts. financial statements
Blended: Consolidated with the primary govt
Discrete: shown in seperate column as a component unit
What is the criteria for discrete and blended presentations of the component units
Blended: When the board of the component unit is substantially the same as the primary govt, or the component serves the primary govt exclusively or almost exclusively, or the component is not a legal entity
Discrete: whenever the blended criteria is not met
What are the minimum disclosures on the government-wide statement of net position
Government acitvities
business type activities
Total primary government activities
Can you define infrastructure assets and describe where they are reported
an infrastructure asset is one that refers to streets, bridges, gutters, water systems, and other assets of govt.
They are reported in assets in the government wide statements at historical cost and depreciated
Do you cpaitalize donated works of art and historical treasures if they are not displayed, or proceeds go towards reinvesting in other works?
YES
List the components of program revenues in the statement of activities (SOC)
Service charges
Operating grants and contributions
Capital grants and contributions
The billings associated with internal service funds to other governmental unit is recorded as an exchange, or an operating revenue?
Operating Revenue
What future costs of a dump are expensed partially in the current period
Cost of final cover for the landfill to cap it
Cost of equipment used to cap or close it, such as gas monitoring or collection system
Depreciation is recorded for one fund type but not another, what are they
Depreciation is not recorded for governmental funds (GRaSPP) but IS recorded for proprietary funds (SE)
What characteristics are present for something to qualify as a fiduciary fund?
Government has control of the assets
The revenues are not ‘own source’ revenues
Assets are not subject to administrative involvement by the government
What is the equation to find the Net Pension Liability
Total Pension Liability (TPL)
LESS: Fiduciary Net Position (FNP)
=Net Pension Liability (NPL)
does the propitiatary funds require statement of cash flows? what about the fiduciary fund?
The proprietary fund requires a statement of cash flows
The fiduciary fund does not require a statement of cash flows
What is included in the intro section of a local governments comprehensive annual financial report
Letter of transmittal
What area of activities are not reported in the government wide statement of net position
Fiduciary Activities
What is the threshold (two part test) for identification of a fund as a major fund
- line item must be at least 10% of that line item for the total fund category to which the fund belongs (I.E GRaSPP or E which are governmental funds, or all enterprise funds)
AND - line item must be at least 5% of that line item for all governmental (GRaSPP+S) AND enterprise (E) fund.
Name some of the potential reconciling items between fund balance accounts on the BS of the governmental fund financial statements and net position displayed on the government wide FS
CANS
+Capital Assets
-Accumulated depreciation
-Non-current liabilities
+Service (internal) fund net position
Name some of the potential reconciling items between fund balance accounts on the statement of revenues, expenditures, and changes in fund balance of the fund financial statements and net position displayed on the government wide FS
CPAS RIDES
\+Capital Outlay \+Principal Payments on noncurrent debt -Assets Disposals (NBV) -Sources (other financing, debt proceeds) \+Revenue accrual -Interest accrual -Depreciation expense \+Service (internal) fund net revenue
What are the major points made in the mangement discussion section
description of the basic FS
identifying the primary govt. and discrete component units
economic conditions and outlook
major initiatives
What are the Primary Government governmental activities and what are the Primary Government Business Type Activities as reported on the government wide financials
Governmental: GRaSPP +S
Business Type: E
What are the categories of Program Revenues shown on the Statement of Activities (Income Statement)
SOC
Services (charged for)
Operating grants and contributions
Capital grants and contributions
What fund is always considered a major fund regardless of the 10% or 5% test
General Fund is always a major fund
How is donated property valued? what about property acquired through other ways like forefeiture?
Donated = FMV
Other kinds = LCM
You own a waste management place, if you buy equipment to help in the closure and post closure care of the place, how would it impact assets and liabilites
it has no effect on assets, but decreases liabilities
How are net assets classified on the government wide financials (RUN)
Restricted
Unrestricted
Net investment in capital assets
The government wide financials use what kind of measurement focus and basis of accounting
Measurement focus: Economic resources
Basis of accrual: Full Accrual
What governmental funds DONT require a statement of cash flows
GRaSPP and CIPPOE
What would be classified as a noncapital financing activity
borrowing for non capital purposes as well as cash from grants or subsidies, property taxes etc..
Where Management Discussion and Analysis presented in terms of the financial statements? What do they even include in it
It’s before the FS and gives a brief overview of the FS and economic outlook/major initiatives
