F8- Gov't Funds Flashcards

1
Q

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

A

Governmental, Proprietary, Fiduciary

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2
Q

What are the types of governmental funds?

A
  • General Fund
  • Special Revenue Fund
  • Permanent Fund
  • Capital Projects Fund
  • Debt Service Fund
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3
Q

What is a General Fund?

A

The operating fund of the governmental unit

Records Significant Revenues: Taxes; Tickets; Fines; Licenses

Records Significant Expenditures: Police; Education; Fire Dept

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4
Q

What is a Special Revenue Fund?

A

Restricted for a specific purpose such as street repair.

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5
Q

What is a Permanent Fund?

A

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

Principal remains intact.

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6
Q

What is a Capital Projects Fund?

A

Used to acquire and build facilities.

Used by GRaSSP Funds

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7
Q

What is a Debt Service Fund?

A

Handles repayment of long-term debt and related interest.

  • Pays off the GRaSSP Funds
  • Does not pay off the debt SE-PAPi Funds
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8
Q

What are the types of Proprietary Funds?

A

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)

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9
Q

What are the Fund Balance Types?

A
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
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10
Q

What are the types of Fiduciary Funds?

A

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

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11
Q

GASB 34 Fund Structure::

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

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

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12
Q

Proprietary Funds: Basis

A
  • Full Accrual Accounting (Basis of Acct)

- Economic Resources Measurement Focus

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13
Q

Internal Service Funds: Purpose

[Proprietary Funds]

A
  • Account for goods & services provided by designated departments on a fee basis to other departments & agencies within a single Gov’t unit.
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14
Q

Enterprise Funds: Purpose

[Proprietary Funds]

A

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.

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15
Q

Gov’t Funds Balance Sheet

A

(CURRENT Assets & Def. Outflows)

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

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16
Q

Statement of Rev, Expenditures & Changes in Fund Balance

[Gov’t Funds]

A

~ Income Statement:

Revenues
(Expenditure)
Other Financing Sources or (Uses)

= Net Change in Fund Assets

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17
Q

Statement of Net Position

[Proprietary Funds]

A

ALL Assets & Def. Outflows of Resources

MINUS

(ALL Liab. & Def. Inflows of Resources)

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18
Q

Statement Revenue, Expenses, & Changes in Fund Net Position

A

~ Income Statement

Operating Revenue
MINUS
(Operating Expenses)

Non- Operating Rev./ (Expense)

= Change in Net Position

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19
Q

Pension & Trust Funds: Purpose

[Fiduciary Funds]

A

Account for:

  • Resources of defined benefit plans
  • Defined contribution plans
  • Post-employment benefit plans
  • Other long-term employee benefit plans.
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20
Q

Agency Trust Funds: Purpose

[Fiduciary Funds]

A

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

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21
Q

Private Purpose Trust Funds: Purpose

[Fiduciary Funds]

A
  • 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.
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22
Q

Investment Trust Funds:Purpose

[Fiduciary Funds]

A
  • Account for external investment pools.
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23
Q

St. of Fiduciary Net Position

[Fiduciary Funds]

A

~ B/S

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

= Net Position

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24
Q

St. of Changes in Fid. Net Position

[Fiduciary Funds]

A

~ I/S

Additions
MINUS
(Deductions)

= Change in Net Position

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25
Q

Revenue Sources: Enterprise Fund

A
  • Charges for Services:

~Water/Sewer billings
~Greens fees (golf course)

26
Q

Net Position: Enterprise Fund

A
  • Net Investment in Capital Assets
  • Restricted (for purpose)
  • Unrestricted
27
Q

Estabishing Enterprise Fund

A
  • Capital Contributions
  • J/E

Capital Assets
—- Capital Contributions

28
Q

Municipal Landfills- Cost Components:

[Enterprise Fund]

A
  • 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.
29
Q

Deferred Compensation Plans

[Pension Funds]

A

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.
30
Q

Escheat Property

[Private Purpose Trust]

A
  • 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.
31
Q

Donations

[Special Revenue Funds]

A
  • Government Restricted:

- Forfeiture Act- illegal Activities

32
Q

J/E for Investment Income

[Debt Service Fund]

A
  • Any income from the investment of resources is recorded as Rev.

CASH
— Revenue- Invest. Inc

33
Q

Treatment of Premiums & Discounts

[Debt Service Fund]

A
  • Treated as a component of bond proceeds at the time of bond issuance
  • There is no amortization or a premium or discount
34
Q

Primarily or Potentially Liable

[Capital Projects Fund]

A
  • Account for the capital project & debt related transactions through the appropriate gov’t or proprietary fund.
35
Q

NOT Primarily or Potentially Liable

[Capital Projects Fund]

A

-Transactions should be reported in an Agency Fund

36
Q

Public Restricted Funds

[Permanent Funds]

A

Available for Public Spending:

  • Special Rev. Fund: Principle & Interest
  • Permanent Fund: Interest Only
37
Q

Restricted Grant Revenues

[Internal Service Fund]

A
  • Recognized as Revenues in the yr the monies are spent
38
Q

Operating Revenues

[Internal Service Fund]

A
  • Billings for services provided
  • Recogned when earned
  • J/E to record Billings:

Cash/ Due from other Fund
— Billings to other Department.

39
Q

Non-Operating Revenues

[Internal Service Fund]

A
  • Such as Interest Exp.

- Are segregated from operating revenues for F/S display.

40
Q

Accrual Accounting

[Internal Service Fund]

A
  • 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
41
Q

Establishing Internal Revenue Fund

A
  • 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.
42
Q

J/E to record other Fund Contributions

[Internal Service Fund]

A

Cash

— Inter-fund Transfer

43
Q

J/E to record sale of General Obligation Bonds

[Internal Service Fund]

A

Cash

—- Long-term Bond Payable

44
Q

J/E to record a long-term payable to another fund

[Internal Service Fund]

A

Cash

—- Due to Other Fund

45
Q

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

A
  • Both an Expenditure & Other Financing Source
46
Q

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

A
  • Gov’t- Wide Statement of Net Position
47
Q

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

A
  • Becomes a General Capital Asset in Gov’t wide St. of Net Position
  • At Lower of Cost or FMV
48
Q

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

A
  • Not record any interest Exp. in the current yr.

- Not accrued between interest dates.

49
Q

Captial Projects Funds reports Revenues from?

A
  • State Grants
50
Q

Bond issuance to report as Other Financing Sources

A
  • Proceeds from issuance of bonds, Face & Premium amount

- Costs would not be netted against proceeds.

51
Q

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

A

Un-Matured:

  • Principal of General Long-Term Debt
  • Interest on General Long-Term Debt
52
Q

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

A
  • Governmental Activities
53
Q

Proprietary Funds; Interest Expense should be reported as an?

A
  • Accrual Basis
54
Q

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

A

Asset Amount- NO Effect

Liability Amount- Decrease

55
Q

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

A
  • Due From Other Funds
56
Q

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

A
  • Separately from Cash Flows from Non- Capital Financing Activities.
57
Q

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

A
  • Required for Enterprise funds, including MD&A & RSI
58
Q

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

A
  • Agency Fund
59
Q

Required F/S for an Investment Trust Fund?

A
  • Statement of Changes in Fiduciary Net Position
60
Q

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

A

Gov’t Funds & Proprietary Funds