F10 Flashcards
Cost components of municipal landfill closures
Equipment to be installed
Facilities to be constructed
Gas monitoring system
Cost of final cover/capping
Internal service fund examples
Central janitorial departments
Central garages
Central purchasing departments
Vehicle maintenance pool for county vehicles
Enterprise fund characteristics and examples
Primarily (>50%) supported by user fees Self-sustaining activities Examples: Public utilities/hospitals/universities Public transportation systems Airports Public housing Lotteries
Criteria of an Enterprise fund
(One of the following)
Activity is financed with debt secured solely by the revenue from fees and charges
Laws require cost of services be recovered by fees
Fees and charges are established in pricing policies.
The orientation of accounting and reporting for proprietary funds is on _________
For governmental funds is on _____________
Income determination;
Source, use and balance of current financial resources
JE to record internal service fund billing another fund for services provided
DR Due from other funds
CR Operating Revenues Control
Required/optional activities to report as supplementary information
Required:
Construction reporting under modified approach
Comparison of general fund budgets to actual fund activity
Optional:
Budget variances (not significant)
Presentation of FS of non-major fund
Fiduciary fund characteristics
Assets are controlled by government
Assets are not derived from revenues generated by the government
Government control of assets is not compromised by external restraints
Government does not have administrative involvement (This is a special revenue fund)
GASB Comprehensive Annual Report components
Introductory Section (unaudited) Basic Financial Statements and Required Supplementary Information (Audited) Statistical Section- 10 years of selected and economic financial date
Components of Basic FS and Supplementary section
(Order is important!) Management's discussion and analysis- supplementary Government-wide financial statements Fund financial statements Notes to the financial statements Required supplementary information
Governmental reporting Accountability types
Operational- Government-wide FS report the extent the government met operating objectives
Fiscal- Fund FS demonstrates that the entity’s actions have complied with public decisions
Primary government criteria
Seperately elected governing body
Legally seperate, AND
Fiscally independent of other state and local governments
Blended Presentation of a Component Unit is appropriate when:
Board of primary government and component unit are the same
Component exclusively serves primary government OR
Organization is not a legal entity
Required Reports in Fund Financial Statements
Governmental funds- Balance Sheet, Statement of revenues, expenditures, and changes in fund balance
Proprietary Funds- Statement of Net Psition, Statement of revenues, expenses, and changes in net position
Fiduciary Funds- Statement of fiduciary net position, Statement of changes in fiduciary net position
Option to not capitalize Artwork and Historical Treasures criteria
Collection is held for public exhibition, not for money
Collection is protected, preserved
There is a policy that proceeds from sales of items will be used to acquire other items
Program Revenue
Revenues directly associated with the function or program on full accrual basis.
Charges for Services
Operating Grants and Contributions- restricted to program
Capital Grants and Contributions- restricted to program
Modified Approach for capitalizing infrastructure
Infrastructure expenditures are not capitalized except for capital outlays that result in additions or improvements
Capital and Related Financing Activities
Cash from issuing debt associated with capital assets
Interest expense
Inflows from capital grants
Inflows from contribution activity and special assessments associated with capital assets
Proceeds from sale of revenue bonds
Operating activities
Inflows from sales of goods and services
Outflows to suppliers or employees
Inflows from interfund reimbursement
Payments to other funds for services including in lieu of taxes
Transactions not falling into one of the other 3 categories
Investing activities
Cash flows associated with loans to others
Interest income
Cash flows associated with equity transactions
Noncapital Financing activities
Cash flows from issuing debt for non capital purposes
Interest expense (except for capital purposes)
Cash receipts from grants or subsidies
Cash frrom property taxes
Operating transfers
Reconciliation: Government fund balance to Net position from government activities
Fund Balance \+ Capital assets (existing and current) - Accumulated depreciation - Non-current liabilities \+ Reduction of deferred inflows - Accrued interest payable \+ Internal service fund net position = Net position
Reconciliation: Change in Government fund balance to Change in net position
Net change in fund balance
+ Capital outlay (current year purchases)
+ Principal payments on non-current debt
- Asset disposals (book value)
- Other financing sources (debt proceeds)
+ Unavailable revenue (that’s been accrued
- Accrued interest expense
- Depreciation expense
+Internal service fund net revenue
= Change in Net Position
JE to recognize measureable but unavailable revenue in adjusting to government-wide FS
DR Deferred Inflows
CR Revenue
JEs to recognize non current assets purchased in prior years on government wide statement of net position
DR Capital assets
CR Net position
DR Net position (beginning)
CR Accumulated depreciation
What is the minimum budgetary information that must be reported in supplementary schedules?
Original budget
Final appropriations budget
Actual inflows/outflows
Balances on a budgetary basis
