F8- Gov't Funds Flashcards
What are the three major types of funds in governmental accounting?
Governmental, Proprietary, Fiduciary
What are the types of governmental funds?
- General Fund
- Special Revenue Fund
- Permanent Fund
- Capital Projects Fund
- Debt Service Fund
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
What is a Special Revenue Fund?
Restricted for a specific purpose such as street repair.
What is a Permanent Fund?
Legally restricted fund; where only earnings can be used to fund programs.
Principal remains intact.
What is a Capital Projects Fund?
Used to acquire and build facilities.
Used by GRaSSP Funds
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
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)
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
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
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
Proprietary Funds: Basis
- Full Accrual Accounting (Basis of Acct)
- Economic Resources Measurement Focus
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.
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.
Gov’t Funds Balance Sheet
(CURRENT Assets & Def. Outflows)
[(CURRENT. Liab.+ Def. Inflows of Resources)
+ Fund Balance (~R/E)]
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
Statement of Net Position
[Proprietary Funds]
ALL Assets & Def. Outflows of Resources
MINUS
(ALL Liab. & Def. Inflows of Resources)
Statement Revenue, Expenses, & Changes in Fund Net Position
~ Income Statement
Operating Revenue
MINUS
(Operating Expenses)
Non- Operating Rev./ (Expense)
= Change in Net Position
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.
Agency Trust Funds: Purpose
[Fiduciary Funds]
Account for resources in the temporary custody of a gov’t unit
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.
Investment Trust Funds:Purpose
[Fiduciary Funds]
- Account for external investment pools.
St. of Fiduciary Net Position
[Fiduciary Funds]
~ B/S
ALL Assets & Deferred Outflows of Resources
MINUS
(ALL Liabilities & Def. Inflows of Resources)
= Net Position
St. of Changes in Fid. Net Position
[Fiduciary Funds]
~ I/S
Additions
MINUS
(Deductions)
= Change in Net Position
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
