F9 Flashcards
Encumbrancces
To set up
Dr. Encumbrances
Cr. Budgetary control
To reverse to adjust price
Dr. Budgetary control
Cr. Encumbrance - same amount
To record actual expenditure
Dr. Expenditure
Cr. Vouchers payable/cash
Closing encumbrances
To close outstanding
Dr. Budgetary control
Cr. Encumbrances
To close budgetary accounts related to outstanding purchase orders
Dr. Unassigned fund balance
Cr. Fund balance-committed
How to calculate available appropriations
Budgeted appropriations minus activity(expenditures minus encumbrances
Reciprocal interfund activity
Exchange type transactions like loans and services provided or used
Nonreciprocal underfund activity
Nonexchange transactions like interfund transfers and reimbursements
Categories of fund balance
Nonspendable: prepaid expenditures & inventories
Restricted: resources restricted by external authority like legislation, grantors or creditors - bond indenture
Committed: encumbered appropriations-most restrictive
Assigned: government intends to obligate
Unassigned: no constraint
Government wide net position categories
Net investment in capital assets
Restricted
Unrestrinced
Net investment in capital assets
Include tangible and intangible assets but exclude unspent resources accumulated for capital resources and equity interest in capital assets of joint ventures
Restricted
Externally imposed by creditors, grantors, and contributors
Unrestricted
Represent managements intentions
General Fund sources of revenue
Measurable and available
- taxes
- fees, fines, license, and permits
- intergovernmental
- charges for services
- other revenues like investment earnings and miscellaneous earnings
General Fund expenditures
- general government
- public safety
- culture and recreation
General Fund Balance sheet
Current assets and deferred outflows equals current liabilities and deferred inflows plus fund balance
Current items only
General Fund income statement
Statement of revenues, expenditures, and changes in fund balance
Special revenue fund
Revenues and expenditures legally restricted for committed for special purposes
Monitoring equals special revenue fund
Debt service fund
Does not use encumbrances
Accumulated resources of cash and investments and payment of currently due interest and principal on long term general obligation debt; pays off general funds like the ones that use accrual
Other financing “use” vs “source”
Other financing use is giving and source is receiving
Interest accumulation for modified accrual
Does not accrue instead you record it when it is time, not over a period of time
Capital projects fund
Construction, purchase, or leasing of significant fixed assets
Proceeds from bonds are other financing sources
Capital grants
Need to spend it to earn it, if restricted its revenue when earned but unrestricted its immediately
Capital grant journal entries
Unrestricted
Dr. Cash
Cr. Revenue
Restricted
Dr. Cash
Cr. Revenue collected in advance
Recognize restricted revenue Dr. Expenditure Cr. Vouchers payable Dr. Revenue collected in advance Cr. Revenue
Construction in progress
Reported in government-wide financial statements since capital projects fund in closed out at year end
Internal service fund revenue J/E
Dr. Cash/due from other fund
Cr. Billings to other departments
How do you establish internal service fund
With contributions nonreciprical
Dr. Cash
Cr. Interfund transfers
Asset contribution
Dr. Capital assets
Cr. Contribution
