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