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FAR- My Notecards > F8: Governmental Funds > Flashcards

F8: Governmental Funds Flashcards

1
Q

G in “GRaSPP” stands for what?

A

General fund

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2
Q

Purpose of the general fund

A

Accounts for the general activities of a government that are not accounted for by any other fund

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3
Q

Examples of general fund activities

A

-Admin and general services of the government

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4
Q

What to remember about the revenue sources and expenditure types of the general fund

A
  • Has the largest variety of revenues in a governmental unit

- Has the largest share of expenditures in a governmental unit

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5
Q

Types of revenue sources of the general fund

A
  • Taxes (property taxes, franchise and public service)
  • Public safety and regulation (fees, fines, license and permit revenues)
  • Intergovernmental (shared or grant revenues)
  • Charges for services
  • Other revenues (investment earnings)
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6
Q

Types of expenditures of the general fund

A
  • General government
  • Public safety
  • Culture and recreation
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7
Q

The assets and liabilities of the general fund consist of _______ items

A

Current items only

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8
Q

How are fixed assets accounted for in the general fund?

A

As expenditures

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9
Q

R in “GRaSPP” stands for what?

A

Revenue (Special) Fund

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10
Q

Purpose of the special revenue fund

A
  • Revenues and expenditures that are legally restricted or committed
  • Life of the fund may be limited or unlimited
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11
Q

Expendable Trust Activities definition

A
  • Examples: scholarship and endowment funds

- Principal and income are expended over the life so they are depleted at the end

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12
Q

Expendable Trust Activities should be accounted for how?

A

In a special revenue fund

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13
Q

The rule of thumb for the use of the correct fund with grants is:

A
  • If government monitoring, special revenue fund

- If non-monitoring, agency trust fund

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14
Q

S in “GRaSPP” stands for what?

A

Service (debt) fund

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15
Q

Purpose of the service (debt) fund

A

Accumulation of resources and payment of currently due principal on “LT general obligation debt” by setting aside cash and cash equivalents

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16
Q

What does the debt service fund pay off?

A

The debt of the GRaSPP funds

17
Q

What does the debt service fund NOT pay off?

A

The debt of the SE-PAPI funds

18
Q

What is NOT used under the debt service fund?

A

Encumbrances

19
Q

Expenditure timing under the debt service fund

A

P&I expenditures recorded when they are legally payable per the bond agreement
-There is no profit motive, so no matching principle

20
Q

Is there an allocation between principal and interest under the debt service fund?

A

NO! both are expenditures

21
Q

Is there an accrual of interest expenditure or interest payable?

A

NO!

22
Q

Is there any amortization or premium of a bond discount?

A

NO!

23
Q

Debt Service Fund closing entries

A
  • Reverse for same amount established at beginning

- Close activity for actual amount

24
Q

1st P in “GRaSPP” stands for what?

A

Projects (Capital) Fund

think: purchasing department

25
Q

Purpose of the projects (capital) fund

A

For the construction or purchase or leasing of significant fixed assets used by GRaSPP only (not by SE-PAPI)

26
Q

What is the life of the capital projects fund?

A

Should be short- limited to a construction period of 1-3 years

27
Q

Revenues and Other Financing Sources for the Capital Projects Fund

A
  • Investment earnings
  • Tax revenues
  • Capital grants
  • Special assessments
28
Q

Capital grants definition

A

Monies received in advance

29
Q

How capital grants are recorded

A

As a liability, expended as earned

30
Q

Restrictive VS. Unrestrictive grant money treatment

A 
Restrictive = Deferred until earned
Unrestrictive = revenue now (recognized immediately)
31
Q

Special Assessments definition

A

Taxes or fees levied against property owners who will directly benefit from the project (sidewalks and street lights)

32
Q

If government is potentially liable for the special assessment debt, they should:

A

Account for the capital project and debt related transactions through the appropriate governmental or proprietary fund

33
Q

If government is NOT potentially liable for the special assessment debt, they should:

A
  • Report the transactions in an agency fund AND

- Exclude assets and liabilities from government-wide presentations

34
Q

What is NOT recorded in the capital projects fund?

A

Bond liability

35
Q

2nd P in “GRaSPP” stands for what?

A

Permanent funds

36
Q

Purpose of the permanent fund

A

Used to report resources that are legally restricted to the extent that only earnings and not principal may be used

37
Q

Example of a Permanent Fund

A

Something that is for the benefit of the public

example: a public cemetery perpetual care fund

38
Q

What is NOT used under the permanent fund?

A

Encumbrances

39
Q

What two governmental funds (GRaSPP) do not record encumbrances?

A
  • Debt service fund

- Permanent fund

FAR- My Notecards (34 decks)

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