F9: Governmental Accounting (Part B) Continued Deck #3 Flashcards
Financial fund statements: GASB 34 emphasizes reporting by ________ rather than fund type
Major Fund
Major funds are defined as:
- Meets the 10% criteria within its category AND
- Also meets the 5% criteria with both categories
10% test for major fund qualification:
10% or more of the total revenues, expenses, assets and deferred outflows/inflows of
- All governmental funds OR
- All enterprise funds
5% test for major fund qualification:
5% or more of the revenues, expenses, assets and deferred outflows/inflows of
- All governmental funds AND
- All enterprise funds
The general fund will always be classified as what?
A major fund
What funds are not considered in the evaluation of major and non major funds?
Internal service funds
What reconciliation is required?
Reconciliation of governmental fund financial statements to government-wide financial statements
Mnemonics to remember for reconciliation of fund statements to government-wide statements:
Balance Sheet: GALS
Statement of Revenues, Expenses, and Changes: GOES
Adjustments: BARE
(make notecard of breakdown)
What section is considered integral to the financial statements?
Notes to the Financial Statements
Sections included in “Required Supplementary Information”
1- Budgetary Info
2- Infrastructure Info
3- Pension Info
Budgetary comparison schedules must show:
Original budget, final amended budget, and actual amounts
What section is optional under the budgetary info?
Variances between budget & actual, or original and final budgets
Pension Info: How many years to include?
10 years (include sources of changes, components, methods and assumptions, etc)
Is the “Other Supplementary Info” Section optional?
Yes
Interfund activity represents what?
The flow of resources between funds and primary government and component units
2 ways to classify inter fund activity:
1- Reciprocal interfund activity
2- Non-reciprocal interfund activity
Reciprocal inter fund activity definition
Includes exchange-type transactions between funds
Examples of Reciprocal inter fund activity
- Interfund loans
- Interfund services provided and used
Non-reciprocal inter fund activity definition
Includes non-exchange transactions between funds
Examples of non-reciprocal inter fund activity
- Interfund transfers
- Interfund reimbursements
Interfund transfers are normally displayed as what?
Other financing sources and uses after non-operating revenues and expenses
Interfund reimbursements are not displayed as what?
Interfund transactions
