F10 - State and Local Government: Part 2

Question 1

Proprietary Funds: NOTE

Answer 1

Statement of Cash Flows are required for all proprietary funds (internal service, enterprise)

Question 2

Proprietary Funds: NOTE

Answer 2

Depreciation expense is recorded in the fund F/S

Question 3

Proprietary Funds: Shared Revenues

Answer 3

Levied by one government but shared on a predetermined basis with another government

Question 4

Proprietary Funds: Due from other funds shows up where?

Answer 4

Balance sheet and doesn’t effect net position

Question 5

Balance of a liability at YE:

Answer 5

B: Balance at BOY
A: Accrued expense (squeeze)
S: (Subtract payments)
E: Balance at EOY

Question 6

Deferred Inflows/Outflows:

Answer 6

Typically:
Assets = Deferred Outflow
Liabilities = Deferred Inflow

Liability goes down = Deferred Inflow
Liability goes up = Deferred Outflow

Asset goes down = Deferred Outflow
Asset goes up = Deferred Inflow

Question 7

Fiduciary Funds: Agency

Answer 7

When the gov’t acts in a custodian manner and has no obligation what so ever

Question 8

Fiduciary Funds: What are the required F/S?

Answer 8

Statement of Fiduciary Net position and Statement of changes in fiduciary net position

Question 9

Fiduciary Funds: EBP, what is required for these?

Answer 9

Disclosure in notes of FS of the types of employees covered by the plan and their obligations to contribute to the plan

Question 10

Gov’t wide FS focus on what type of accountability?

Answer 10

Operational

Question 11

Basic Financial Statements include?

Answer 11

Gov’t wide, Fund and Notes to the FS. Required Supplemental Information and Mgt MD&A

Question 12

Joint presentation of Gov’t wide FS and Fund FS is called what?

Answer 12

Integrated Approach

Question 13

What kind of activities should be excluded from gov’t wide measures of operational accountability?

Answer 13

Fiduciary

Question 14

Blended Components are what?

Answer 14

Components of the gov’t that are so similar to the gov’t that their financial information should be shown within the total gov’t financial numbers.

Question 15

Discrete presentation components are what?

Answer 15

Components that are not that similar to the gov’t and that don’t exclusively service or benefit the city gov’t itself

Question 16

Reporting status of a gov’t is determined by:

Answer 16

S: separately reported
E: elected governing body
L: legally separate entity
F: financially independent status

Ones that meet all criteria: Primary Gov’t

Ones that fail any: Component Units

Ones whose governing body is substantially the same and exclusively serve the gov’t: Blended

Ones that don’t meet blended: Discrete presentation

Question 17

What is included in the introductory paragraph of a CAFR?

Answer 17

• Letter of transmittal
• List of principal officers
• Org chart

Question 18

MD&A and Supplemental Information is presented where?

Answer 18

Before the basic financials statements and provides an analytical overview

Question 19

Property Attained by the gov’t is recorded at what?

Answer 19

Lower of cost or market

Question 20

Asset purchased in relation to landfill closure/post-closure should be treated and reported how?

Answer 20

Not as capital assets and should decrease the liability account

Question 21

Enterprise fund debt should be shown on the gov’t wide FS where?

Answer 21

They carry their own debt and it should be shown on the statement of net assets (not as a liability resulting from government activities)

Question 22

Net assets are classified how on the gov’t wide FS?

Answer 22

• Net invest in capital assets
• Unrestricted
• Restricted

Question 23

GASB requires companies to do what in regards in infrastructure to comply with the modified approach?

Answer 23

Assess the infrastructure every 3 years and determine what is takes to keep the infrastructure in the condition it is now

Question 24

Gov’t wide FS: Inter-fund receivables/payables between gov’t fund and enterprise funds turn into what?`

Answer 24

Internal balances (that sum to zero)

Question 25

Program revenues on the gov’t wide FS include?

Answer 25

S: charges for services
O: operating grants
C: capital grants

Question 26

Gov’t wide FS: Internal Service Fund Note

Answer 26

A lot of times looked at as governmental fund

Question 27

Governmental Entity Statement of Cash Flows: NOTE

Answer 27

Capital financing and non-capital financing are reported separately

Question 28

Major funds: 10% and 5% test

Answer 28

10% Test:
-Fund must make up at least 10% of all assets, liabilities, revenues and expenses of Gov’t funds OR Enterprise funds

AND MUST

5% Test:
-Fund must make up at least 5% of all assets, liabilities, revenues and expenses of Gov’t funds and Enterprise funds

Question 29

SOCF: Governmental Funds

Answer 29

DON’T MAKE THEM!!!

Question 30

Noncapital Financing Activities: Include

Answer 30

Borrowing for non-capital purposes.

Operating Transfers Out, Subsidies from grants, property taxes.

Question 31

Reconciling Cash Flow from Operations: Calculation

Answer 31

Operating Income

• Increases in assets
  + Increases in liabilities (net of current portion of debt)
  +Depreciation expense

Question 32

What should be subtracted from Net Position in Gov’t wide FS?

Answer 32

NBV of assets sold during the year.

• Proceeds from sale (shown in Fund FS) - Gain from sale (shown on Gov’t Wide FS) = NBV

Question 33

What is least likely to be a reconciling item to get from “change in fund balance” to “change in net position” on gov’t wide FS?

Answer 33

Debt Service - Interest Payments

Question 34

Gov’t Wide FS: General Debt Obligation (non-current debt) Calculation

Answer 34

Beg Gen Purpose Debt
- Principal Payments
+ Capital Lease
- Amount Due at Signing

Question 35

Budgetary schedules should show what?

Answer 35

• Original budget
• Final appropriations budget
• Actual inflows/outflows and balances on budgetary basis

Question 36

Budgetary schedules should be shown for what funds under GASB 34?

Answer 36

General Fund and each major Special Revenue fund that has a legally adopted annual budget