F9- Gov't Acct Flashcards
Operational Accountability
- Focus of Gov’t F/S
- To report the extent to which the Gov’t has met Operational objectives:
~Efficiently & Effectively
- Using all resources avail. for that purpose
- The extent to which it can continue to meet its objectives for the future
Fiscal Accountability
- Focus of the Fund F/S
- To Demonstrate that Gov’t Entity actions in the current period have Complied with public decisions.
- Concerning the raising & spending of public funds in the short-term
GOV’T -WIDE F/S Required for General Purpose Gov’t Units
- Statement of Net Position
- Statement of Activities
F/S Required for Gov’t Funds
- St. of Net Position/ Balance Sheet
- Statement of Revenues, Expenditures & Changes in Fund Balance
F/S Required for Proprietary Funds
- Statement of Net Position
- Statement of Revenues, Expenditures & Changes in Fund Net Position
F/S Required for Fiduciary Funds
- Statement of Fiduciary Net Position
- Statement of Changes in Fiduciary Net Position
Supplementary Information:
[Reporting General Purpose Gov’t Units]
- Optional
- Variance between final amended budget & actual
Optional Reporting
[Reporting General Purpose Gov’t Units]
Comprehensive Annual Fin. Report:
- Introductory Section (Unaudited)
- Basic Financial Statements & Required Suppl. Info (Audited)
- Statistical Section
Primary Gov’t Entities: Special Purpose
“SELF”
Meets all criteria: “SELF”
- Has a Separately-Elected governing body
- Is Legally separate
- Is Fiscally independent of other state & local Gov’t
Example: Hospital/ School
Blended Presentation
- Some Boards of the Component units are intertwined with the Primary Gov’t. that they are same as P. Gov’t
- Component Unit serves the primary gov’t exclusively or almost exclusively.
What is in a MG’s Discussion & Analysis?
- Narrative that provides a brief, objective, & easily readable analysis of the Gov’t’s Financial activities
- Based upon currently known facts, decisions & conditions
- Provides an opportunity to present both a short-term & long-term analysis of activities
F/S in the MG’s Discussion & Analysis
- Easily Readable analysis of the Gov’t Financial Activities.
- Condensed F/S info derived from the Gov’t-wide F/S
- To support the Gov’t overall Fin. Position & results of operations.
- 3 yrs of date are required if Comparative.
- Analysis of signif. Variations between original & final budget.
MG’s Discussion & Analysis: Supplementary Info
- Description of the F/S
- Identity of the Primary Gov’t & Discrete Component Units
- Economic Conditions & Outlook
- Major Initiatives
3 Components of Net Position: ‘RUN’
- Net Investment In Capital Assets
- Restricted
- Unrestricted
Capitalization of Assets: Infrastructure Examples
- Refers to Streets, Bridges, Gutters & other Assets of the Gov’t
Modified Approach Reporting Requirements
- A schedule reporting the condition of the Gov’t infrastructure
& - Comparison sch. of needed & actual expenditures to maintain the Gov’t infrastructure
Capitalization of Artwork & Historical Treasures
- Gov’t has choice to not capitalize works of art
- Regardless of whether the collection items were donated or bought.
NOT Capitalize: Artwork & Historical Treasures
When all are met:
- Held for public, education or research
- Protected, kept unencumbered, cared for & preserved.
- Subject to an organization policy that requires the proceeds from the sale of the collection items to be used to acquire other items for collections
Program Revenue Category Types:
[Statement of Activities]
‘SOC’
- Charges for Services
- Operating Grants & Contributions
- Capital Grants & Contributions
Major Fund Rules: 2 Criterias
[Fund F/S]
GRaSPP Funds are individually compared to the total of all Gov’t funds & Enterprise Funds
- 10% or more
- 5% or more
10% or More Criteria of Major Fund Rule
~ Total revenues
~ Expenditures/exp,
~ Assets & deferred outflows of resources
or
~ Liabilities & deferred inflows Resources of:
All Gov’t Funds
OR
All Enterprise Funds
5% or more Criteria of Major Fund Rule
~ Revenues
~ Expenditures/exp,
~ Assets & deferred outflows of resources
or
~ Liabilities & deferred inflows of resources of :
All Gov’t Funds
AND
All Enterprise Funds
Statement of Cash Flows
Similar to Commercial Enterprise version:
- Direct Method is required (indirect not allowed)
- Recon. of operating income to net cash provided by operations is required.
- Capital Asset purchases reported as ‘Financing Act.’
4 Categories in St. of Cash Flow
- Order of Financing & Investing Categories are reversed, Gov’t entities before Investing
- Operating Activities
- Capital & related financing activities
- Non-Capital Financing activities
- Investing Activities
Captial & Related Financing Activities
- Cash Flows from issuing Debt associated with Capital Assets
- Cash Inflows from:
~ Capital Grants
~Contribution activity associated with Capital assets - Cash Activity related to special assessments associated with capital assets
Non-Capital Financing Activities
- Cash Receipts from grants or subsidies
- Cash received from property taxes
(Not restricted for capital use) - Operating Transfers
Budgetary Comparison schedules
- Must show the original budget, the final amended budget & actual amounts
- Optional Computation of:
~ Variances betwn Budget & Actual
~Differences betwn Original & Final amended budget
Financial Statement Displays
- Within the Gov’t activities column of the Gov’t-Wide F/S: (Eliminated)
- Within the Business-type Activities column of the Gov’t-Wide F/S: (Eliminated)
- Betwn the Gov’t activities & Business-type Activities displayed on the Gov’t-Wide F/S
- Betwn the primary Gov’t & its Fiduciary Funds
St. of Cash Flows: Interest
- Interest income/cash receipt are reported as ‘Investing act’
- Interest Exp./cash payments are either:
~ Capital or Non-Capital
What items in a Basic F/S are reported according to GASB 34?
- Gov’t Wide F/S
- Fund F/S Statements
- Notes to the F/S
Basic F/S & Require supplementary info for general purpose Gov’t should consist of?
- MD&A
- Basic F/S
- Req. Supplementary information
In financial reports, Non- Major Funds within its fund types MAY include?
- Combining F/S for non-major funds for each fund type in the Supplementary information
A Gov’ts MD&A would not include?
- Reconciliation of Fund F/S
& - Gov’t-Wide F/S
Under the Modified Approach to Capitalizing Infrastructure, Gov’t apply what principle to record current yr additions?
- Infrastructure Expenditures are reported as Expenses
- Except for Outlays that result in additions or improvements, which would be Capitalized.
In preparing Gov’t-Wide F/S, Interfund Rec & Payables betwn Gov’t & Enterprise Funds should be Reported as?
- Internal Balances
Notes to the Basic F/S of Gov’t Entities
- Notes that are considered essential to Basic F/S need to be presented
- Acceptable to present notes in a very extensive format
- Gov’t Notes can be identical to notes presented in Bus. F/S
Reconciliation of Gov’t Fund F/S to a Govt-Wide Presentation would most likely be found in?
- Basic Financial Statement
If a City Gov’t is the Primary reporting entity, what method is acceptable to present component units in its Combined F/S?
- Discrete Presentation
