F9: Governmental Accounting (Part B)

Question 1

GASB 34 requires the presentation of what?

Answer 1

• Basic financial statements

- Required supplementary info

Question 2

Basic financial statements definition

Answer 2

• Government-wide financial statements
• Fund financial statements
• Notes to the financial statements

Question 3

Other required supplementary info includes what?

Answer 3

• Management’s discussion and analysis

- Other schedules

Question 4

Where is MD&A shown?

Answer 4

Before the basic financial statements

Question 5

Governmental reporting focuses on what two types of accountability?

Answer 5

1- Operational Accountability

2- Fiscal Accountability

Question 6

What is the focus of government-wide financial statements?

Answer 6

Operational Accountability

Question 7

What is Operational Accountability?

Answer 7

The extent to which the government has met its operating objectives efficiently and effectively and the extent to which it can continue to meet its objectives

Question 8

What is the focus of fund financial statements?

Answer 8

Fiscal Accountability

Question 9

What is Fiscal Accountability?

Answer 9

Shows that the government entity’s actions in current period have complied with public decisions

Question 10

CAFR stands for what?

Answer 10

Comprehensive Annual Financial Report

Question 11

CAFR definition

Answer 11

A section that adds an:

• Intro section (before basic financial statements)
• Statistical section (after basic financial statements and supplemental required info)

Question 12

Is CAFR required?

Answer 12

No

Question 13

What is included in the Intro Section of CAFR?

Answer 13

• Letter of transmittal
• Organizational chart
• List of principal officers

Question 14

What is included in the Statistical Section of CAFR?

Answer 14

• 10 years of selected financial data
• 10 years of economic data
• Other data

Question 15

The primary government consists of what?

Answer 15

All organizations that make up the legal government entity

Question 16

The primary government is considered the _______ of the financial reporting entity

Answer 16

Nucleus

Question 17

Types of Primary Government Entities

Answer 17

• State governments
• General purpose local governments
• Special purpose local governments that meet SELF criteria

Question 18

SELF stands for what?

Answer 18

SE- has a Separately-Elected governing body
L- is Legally separate, and
F- is Fiscally independent of other state/local governments

Question 19

What is a component unit?

Answer 19

-An organization for which the elected officials of the primary government are financially accountable
OR
-An organization that cannot be excluded from the primary government’s statements without making them incomplete

Question 20

Two ways to present a component unit

Answer 20

1- Blended Presentation

2- Discrete Presentation

Question 21

What is Blended Presentation?

Answer 21

-When a component unit is so entwined with the primary government

Question 22

Examples of units requiring blended presentation

Answer 22

• A board of the component unit is substantively the same as that of the primary government
• Component unit serves the primary government exclusively (or almost)
• Component unit is not a separate legal entity

Question 23

Units requiring discrete presentation

Answer 23

When the requirements of blended presentation are not met

Question 24

Which type of presentation of component units is most common?

Answer 24

Discrete presentation

Question 25

Examples of NFP units that can be presented as a component unit (because they provide ongoing support to the primary government)

Answer 25

• Private foundations associated with state universities

- Private foundations associated with public health care facilities

Question 26

Legally separate, tax-exempt organizations should be recorded as discrete if ALL the following 3 standards are met:

Answer 26

1- Benefit standard
2- Access standard
3- Significance standard

Question 27

Definition of Benefit Standard

Answer 27

Resources held by the tax-exempt organization are for near-exclusive benefit of the primary government

Question 28

Definition of Access Standard

Answer 28

Primary government has access to a majority of the resources held by the tax-exempt organization

Question 29

Definition of Significance Standard

Answer 29

Resources held by the tax-exempt organization are significant to the primary government