F8- Gov't Funds Flashcards by Nora Franco

What are the three major types of funds in governmental accounting?

Governmental, Proprietary, Fiduciary

How well did you know this?

Not at all

Perfectly

What are the types of governmental funds?

General Fund
Special Revenue Fund
Permanent Fund
Capital Projects Fund
Debt Service Fund

How well did you know this?

Not at all

Perfectly

What is a General Fund?

The operating fund of the governmental unit

Records Significant Revenues: Taxes; Tickets; Fines; Licenses

Records Significant Expenditures: Police; Education; Fire Dept

How well did you know this?

Not at all

Perfectly

What is a Special Revenue Fund?

Restricted for a specific purpose such as street repair.

How well did you know this?

Not at all

Perfectly

What is a Permanent Fund?

Legally restricted fund; where only earnings can be used to fund programs.

Principal remains intact.

How well did you know this?

Not at all

Perfectly

What is a Capital Projects Fund?

Used to acquire and build facilities.

Used by GRaSSP Funds

How well did you know this?

Not at all

Perfectly

What is a Debt Service Fund?

Handles repayment of long-term debt and related interest.

Pays off the GRaSSP Funds
Does not pay off the debt SE-PAPi Funds

How well did you know this?

Not at all

Perfectly

What are the types of Proprietary Funds?

Internal Service Funds - to serve the needs of other governmental units (i.e. motor pool)

Enterprise Funds - provide goods or services to external users (i.e. post office)

How well did you know this?

Not at all

Perfectly

What are the Fund Balance Types?

Restricted - Restricted by Contributor 
 Committed - Restricted by Government
 Assigned - Intended for a purpose
 Unassigned - Available to be spent
 Non-spendable - Not in a spendable state

How well did you know this?

Not at all

Perfectly

What are the types of Fiduciary Funds?

Agency Fund - government acts as an agent or custodian

Pension Trust Fund - Government is a trustee for a pension plan

Investment Trust Fund - Government is a trustee over a series of investments

Private Purpose Trust - Trust that benefits various individuals and entities

How well did you know this?

Not at all

Perfectly

GASB 34 Fund Structure::

11 Fund Types are classified in the following 3 Generic categories:

Gov’t Funds: GRaSSP
Proprietary Funds: SE-
Fiduciary Funds PAPI

How well did you know this?

Not at all

Perfectly

Proprietary Funds: Basis

Full Accrual Accounting (Basis of Acct)

- Economic Resources Measurement Focus

How well did you know this?

Not at all

Perfectly

Internal Service Funds: Purpose

[Proprietary Funds]

Account for goods & services provided by designated departments on a fee basis to other departments & agencies within a single Gov’t unit.

How well did you know this?

Not at all

Perfectly

Enterprise Funds: Purpose

[Proprietary Funds]

Set up to account for the acquisition & operation of Gov’t facilities & service that are intended to be primarily (over 50%) self-supported by user charges.

How well did you know this?

Not at all

Perfectly

Gov’t Funds Balance Sheet

(CURRENT Assets & Def. Outflows)

[(CURRENT. Liab.+ Def. Inflows of Resources)
+ Fund Balance (~R/E)]

How well did you know this?

Not at all

Perfectly

Statement of Rev, Expenditures & Changes in Fund Balance

[Gov’t Funds]

~ Income Statement:

Revenues
(Expenditure)
Other Financing Sources or (Uses)

= Net Change in Fund Assets

How well did you know this?

Not at all

Perfectly

Statement of Net Position

[Proprietary Funds]

ALL Assets & Def. Outflows of Resources

MINUS

(ALL Liab. & Def. Inflows of Resources)

How well did you know this?

Not at all

Perfectly

Statement Revenue, Expenses, & Changes in Fund Net Position

~ Income Statement

Operating Revenue
MINUS
(Operating Expenses)

Non- Operating Rev./ (Expense)

= Change in Net Position

How well did you know this?

Not at all

Perfectly

Pension & Trust Funds: Purpose

[Fiduciary Funds]

Account for:

Resources of defined benefit plans
Defined contribution plans
Post-employment benefit plans
Other long-term employee benefit plans.

How well did you know this?

Not at all

Perfectly

Agency Trust Funds: Purpose

[Fiduciary Funds]

Account for resources in the temporary custody of a gov’t unit

How well did you know this?

Not at all

Perfectly

Private Purpose Trust Funds: Purpose

[Fiduciary Funds]

Designated funds for all other trust fund arrangements
Under which Principal & income are for the benefit of specific individuals, Private organizations
Gov’t will need to record escheat property in a private purpose trust fund.

How well did you know this?

Not at all

Perfectly

Investment Trust Funds:Purpose

[Fiduciary Funds]

Account for external investment pools.

How well did you know this?

Not at all

Perfectly

St. of Fiduciary Net Position

[Fiduciary Funds]

~ B/S

ALL Assets & Deferred Outflows of Resources
MINUS
(ALL Liabilities & Def. Inflows of Resources)

= Net Position

How well did you know this?

Not at all

Perfectly

St. of Changes in Fid. Net Position

[Fiduciary Funds]

~ I/S

Additions
MINUS
(Deductions)

= Change in Net Position

How well did you know this?

Not at all

Perfectly

Revenue Sources: Enterprise Fund

- Charges for Services: ~Water/Sewer billings ~Greens fees (golf course)

Net Position: Enterprise Fund

- Net Investment in Capital Assets - Restricted (for purpose) - Unrestricted

Estabishing Enterprise Fund

- Capital Contributions - J/E Capital Assets ---- Capital Contributions

Municipal Landfills- Cost Components: | [Enterprise Fund]

- Cost of Equipment expected to be installed - Cost of Gas monitoring & collection systems - Cost of Final cover (capping) - Estimate should be adj. yearly. - Recognized as an expense & as a Liab., based on usage.

Deferred Compensation Plans | [Pension Funds]

Accounting Treatment: - IRC Section 457 - Plans are reported in the fiduciary funds should be reported as pension trust funds - Investment held by these plans are to be reported at FV.

Escheat Property | [Private Purpose Trust]

- That Reverts to a Gov't entity in the absence of legal claimants or heirs at the time the estate is settled - Generally should be reported as an asset in the govt or proprietary fund to which the property ultimately Escheats. - Reported as Held for individuals, private organ. or other Gov't organ.

Donations | [Special Revenue Funds]

- Government Restricted: | - Forfeiture Act- illegal Activities

J/E for Investment Income | [Debt Service Fund]

- Any income from the investment of resources is recorded as Rev. CASH --- Revenue- Invest. Inc

Treatment of Premiums & Discounts | [Debt Service Fund]

- Treated as a component of bond proceeds at the time of bond issuance - There is no amortization or a premium or discount

Primarily or Potentially Liable | [Capital Projects Fund]

- Account for the capital project & debt related transactions through the appropriate gov't or proprietary fund.

NOT Primarily or Potentially Liable | [Capital Projects Fund]

-Transactions should be reported in an Agency Fund

Public Restricted Funds | [Permanent Funds]

Available for Public Spending: - Special Rev. Fund: Principle & Interest - Permanent Fund: Interest Only

Restricted Grant Revenues | [Internal Service Fund]

- Recognized as Revenues in the yr the monies are spent

Operating Revenues | [Internal Service Fund]

- Billings for services provided - Recogned when earned - J/E to record Billings: Cash/ Due from other Fund --- Billings to other Department.

Non-Operating Revenues | [Internal Service Fund]

- Such as Interest Exp. | - Are segregated from operating revenues for F/S display.

Accrual Accounting | [Internal Service Fund]

- Recording Long-term Liabilities, Fixed Assets & Depreciation - Budgetary Accounts & Encumbrances (Not Applicable) - Net Position: classed in consistent with other proprietary funds & 3 categories: ~Restricted, Unrestricted, Net Investment in Capital Assets

Establishing Internal Revenue Fund

- Contributions from other funds - The start would be recorded as an inter-fund transfer - Sale of General Obligation Bonds' or Capital Leases - Long-Term Advances from other Funds to be repaid from the earnings.

J/E to record other Fund Contributions | [Internal Service Fund]

Cash | --- Inter-fund Transfer

J/E to record sale of General Obligation Bonds | [Internal Service Fund]

Cash | ---- Long-term Bond Payable

J/E to record a long-term payable to another fund | [Internal Service Fund]

Cash | ---- Due to Other Fund

Acq. of a Capital Lease, in general Fixed Asset, should be reflected in Fund F/S as?

- Both an Expenditure & Other Financing Source

Debt maturing in # yrs, to be repaid from general resources of the Gov't should be reported in the ?

- Gov't- Wide Statement of Net Position

Acq. property through forfeiture of nonpayment, what amount should be Capitalized relative to its Gov't activities?

- Becomes a General Capital Asset in Gov't wide St. of Net Position - At Lower of Cost or FMV

Record Interest Expenditures when Interest is payable in the following year?

- Not record any interest Exp. in the current yr. | - Not accrued between interest dates.

Captial Projects Funds reports Revenues from?

- State Grants

Bond issuance to report as Other Financing Sources

- Proceeds from issuance of bonds, Face & Premium amount | - Costs would not be netted against proceeds.

Major exception to the general rule of expenditure accrual of Gov't Funds under the Mod. accrual relates to Unmatured?

Un-Matured: - Principal of General Long-Term Debt - Interest on General Long-Term Debt

Internal Service Fund, Assets & Laib. are not eliminated, should be reported in Gov't Wide St. of Net Position as?

- Governmental Activities

Proprietary Funds; Interest Expense should be reported as an?

- Accrual Basis

Purchase of equipment that would effect Capital Assets & Liab. amount in Gov't-wide F/S?

Asset Amount- NO Effect Liability Amount- Decrease

What does NOT affect an Internal Service Fund's Change in Net Position?

- Due From Other Funds

St. of Cash Flows from Capital Financing Activities are reported?

- Separately from Cash Flows from Non- Capital Financing Activities.

Required to be presented in F/S for special purpose Gov't engaged in only Business-type activities?

- Required for Enterprise funds, including MD&A & RSI

Funds should the Debt Service transactions of a special Assessment issue for which the Gov't is NOT obligated in any manner be reported?

- Agency Fund

Required F/S for an Investment Trust Fund?

- Statement of Changes in Fiduciary Net Position

What funds do Interfund Transfers affect the results of operations in their Fund F/S?

Gov't Funds & Proprietary Funds