F9 Flashcards
Fund definition
A sum of money or other resource segregated for the purpose of carrying on a specific activity in accordance with specific regulations, and constituting an independent fiscal and accounting entity
GASB 34 Reporting Requirements
Basic FS statements and notes
Required supplementary information
General Purpose External Financial Reporting Requirements
Basic FS statements and notes
Required supplementary information
Comprehensive annual financial reporting
Budgets and other special purpose reports
Information not fully addressed by financial reporting objectives
City’s compliance with laws and regulations
Detailed financial plan for future years
Which characteristic of information is most difficult to report to a governmental entity?
Relevance- means the information provided must have a close logical relationship to its needed purpose
The purpose of GASB 34, presenting seperate fund financial statements for each fund is:
To report additional and detailed information about the primary government
Modified Accrual Basis
Revenue is recognized when measurable and available, meaning collectible within the current period.
(In full accrual, revenue is recognized when earned).
Interest and principal on long term debt are recorded when they become due and payable.
Types of Governmental funds
General fund
Special revenue fund- funds restricted either legally or committed to purposes
Debt service funds
Capital projects funds
Permanent funds- Principal is restricted, income may not be
Encumbrance
Used to record purchase orders and is designed to monitor spending for increased budgetary control
DR Encumbrance
CR Budgetary Control
JE to record budgeted amounts for estimated revenue and approved expenditures
DR Estimated revenue control
CR Appropriations control
DR Budgetary control if Appropriations > revenue
CR Budgetary control if Revenue > appropriations
Types of non-exchange revenue
Derived tax revenues- sales and income taxes
Imposed revenues- Fines/property taxes
Government-mandated transactions- Ex. city ordered clean up
Voluntary transactions- Government receives resources and does not provide equal value (grant agreement)
Governmental funds record fixed asset acquistions as ________.
Proprietary and fiduciary funds record fixed asset acquisitions as __________
Expenditures;
Capitalize and depreciate fixed assets
Governmental funds record long-term debt proceeds as _______.
Proprietary and fiduciary funds record long-term debt by________
Other financing sources;
Directly paying interest and principal
Government fund balance categories
Nonspendable- Current assets that can’t be spent, ex. prepaid expenditures and inventory
Restricted- Resources restricted by outside/higher law, legislation, creditors
Committed- Open purchase orders, assets formally committed by government
Assigned- Assets government intends to obligate, but not formally committed. Ex. Designations
Unassigned- Everything else, may be negative
Available appropriations calculation
(Budgeted) Appropriations - (Actual) Expenditures - Encumbrances (Outstanding POs)
Sources of Deferred Inflows
Imposed non-exchange revenue transactions collected or recorded as receivable before being levied
Gain on refunding of debt, lease sales
Intra-entity transfers of future revenues
Sources of Deferred Outflows
Government-mandated resources received before time requirements are met
Loss on refunding of debt, lease sales
Asset retirement obligations
JE to record property taxes when billed
DR Property tax receivable
CR Property tax revenue
CR Allowance (if there is an estimated uncollectible amount)
JE to record entering a lease with ownership transfer
DR Capital Outlay
CR Other financing sources - Debt proceeds
Special items
Items under control of management that are either unusual or infrequent in nature.
Ex. Sales of government capital assets, termination benefits, early retirement programs, forgiveness of debt
JE to record governmental issuance of bonds
DR Cash
DR/CR Bond discount/premium
CR Bond Proceeds
Capital grants are recorded as _____
Revenue when received if unrestricted.
A liability when received if restricted, and revenue when spent.
Special Assessments
Taxes or fees levied on property owners who will directly benefit from the project.
If government is liable, include as revenue and on the government wide financial statements.
If government is not liable, report in a custodial fund and not on government wide FS
Bond issue proceeds are recorded as _____
Other financing sources
