F9 Flashcards
What is the order of reporting for general-purpose governmental units?
Managements discussion and analysis, government wide financial statements, fund financial statements, notes to financial statements, required supplementary information
When are budgetary comparison schedules required? And what do they display?
Prepare for general fund and each major special revenue fund requiring a budget. Display original budget, final budget, an actual inflows, outflows, and balances on a budgetary balance
What is the pneumonic used in the reconciliation of the change in Fund Balance and governmental fund financial statements to change in position for governmental activities in the government wide financial statements?
GOES. Change in governmental fund balance, other financing sources, expenditure - capital outlay (net of depreciation), internal service fund net income
What type of accountability is the focus for governmental wide financial statements?
Operational
What type of activity or cash receipts associated with interest income on the statement of cash flow?
Investment activities
What are the three sections and a comprehensive annual financial report?
Intro, basic financial statements and other required supplementary information, and the statistical section
What type of accountability is the focus of fund financial statements?
Fiscal
What three items are included in the basic financials?
Government wide financials, fund financials, and notes to the financials
What approach is the joint presentation of government wide and fun financial statements and appropriate reconciliation called?
Integrated approach
What we do with nonmajor funds?
Man include combining financial statements and supplementary information
In the comprehensive annual financial report, how is management discussion and analysis considered?
Required supplementary information
What is the purpose of management discussion and analysis?
Introduce basic financials and provide analytical overview of financial activity
What activities are excluded from government wide measures of operational accountability and why?
Fiduciary activities since the resources cannot be used to support the governments programs or services
How can government wide financial statements classify net assets?
RUN. Restricted, unrestricted, net investment
Under the modified approach to capitalizing infrastructure, how are regular infrastructure expenditures treated? What if the expenditures result in improvements or additions?
Report as expenses; capitalize
With government wide financial statements, where can we find information about all assets liabilities revenue expenses gains and losses?
Statement of net position and statement of activities using economic resources measurement focus and accrual method of accounting
What is the criteria for determining major funds?
Revenues, expenditures or expenses, assets, or liabilities at least 10% of the associated total for all governmental or enterprise and at least 5% of total of the associated totals for all governmental and enterprise funds
Are variances required or optional when preparing budgetary comparison schedules?
Optional
How should budgetary comparison schedules be presented?
As required supplementary info or in the basic financial statements for the general fund and for each major special revenue fund that has legally adopted the budget
What are the eligibility requirements for infrastructure assets to not report depreciation expense under the modified approach?
Government must report assessed condition of infrastructure every three years and estimated annual amount to maintain and preserve the conditions level established and disclosed
What is the SELF test and what is it used for?
Used to determine whether presentation should be blended or discreet. Separately elected governing body, Legally separate, Fiscally independent of other state and local governments
In government wide statements, how are interfund receivables/payables reported?
As internal balances
Where do we report debt to be repaid for general resources?
In government wide statement of net position
When with the unassigned fund balance in the general fund increase?
When appropriations exceed actual expenditures