FAR 22 Flashcards
What is Revenue from Bonds considered
- It is a SOURCE - not revenue
When are grants revenue
Unrestricted Grant - Revenue when APPROVED
Restricted Grants - Revenue when spent (because you only spend it if you have met the restrictions and the $ is going to the proper purposes)
What are the Governmental Funds (Modified Accrual)
PD Says I Can Smoke Grass
PD CSG
G - General Fund - ordinary operations, public safety, public works, culture and rec
unassigned balance funds,
S - Special Funds - “earmarked” revenue restricted for a designated activity - restricted funds
C - Capital Projects - major acquisition or project - restricted, committed or assigned funding
P - Permanent Fund - Accounts fro endowments. Earning are restricted. Only can spent investment earnings - not the principle
D - Debt Service Funds - this makes principle and interest payments on debts of the government.
Proprietary Funds (Business Type Funds)
Enterprise Funds - these are business type activities that the PUBLIC is the primary user of
voluntary payment or user fees (city operated water utility, airports, transit system, post office, pubic housing, public universities, etc.
Internal Services Funds - Also business types activities - where other GOVERNMENTAL AGENCIES are the primary users
- Maintenance department, IT, Janitorial.
This fund bills other funds
What are the Fiduciary Funds
These are funds held by the government in TRUST for other entities ( Run like private business
Pension Trusts - RSI schedules required
Investment Trusts - pooled resources for multiple gov agencies
Private purpose trusts - these are resources for the benefit of private persons NOT government - Tobacco Trust for cancer research
Agency Funds - These are collected amount that must be transferred to others
What are the Government Wide financial Statements
Statement of Net Position - Balance Sheet
- On Accrual Basis
- Two Columns - Governmental Activities, Business Activities
- NO Fiduciary Funds
- Net Position is the last part of the statement
Statement of Activities (I/S)
- This is a government wide statement of operations -
- Also on Accrual Basis
- Program revenues and expenses
- Net program revenue and expenses
- General Revenues
Gov. activities and business activities are separated on the statement
What is the measurement focus of the government-wide financial statements
Economic Resource Focus - Accrual Basis these are only the current resources available that you can spend right now
- only available when received.
- Dont accrue it till you receive it (expect property tax)
What are the Governmental Fund Financial Statements (2)
Balance Sheet
- Assets and Deferred Outflows of resources section
- Liabilities, Deferred Inflows and Fund Balance
- Columns left to right: general fund, special revenue fund, capital project fund, debt service fund, total and then “all non-major “ funds and total
Statement of Revenues Expenditures, and Changes in Fund Balance
- Revenue sections
- Expenditure cessation
- Changes in fund balance at bottom
- Has separate column for each major fund like the balance sheet
Do governmental fund statements have a statement of cashflows?
NO!
Only The Fund Financial Statement have a Statement of Cashflows
When is a Budgetary Comparison Statement Required (BCS)
Required for the general fund and any annually budgeted major special revenue fund
General Fund
- This is required
- Uses Modified Accrual Accounting
- Uses budgetary and encumbrance accounting
- Revenues come from taxes, license and permits, charges for services and fines
- Revenues MUST be measurable and available
What is required to be include din the notes to a governmental entity’s general purpose financial statements
- a summary of significant accounting policies
- example: policies regarding the reporting of infrastructure assets
under modified accrual when may revenues be accrued
- Only when they are considered available (generally within 60 days)
So property Tax revenue that was deferred because it was not available would YES be captured on government -wide statement of activities (Accrual), but NOT on Statement of Revenues, Expenditures, and changes in fund balance (modified accrual)
Encumbrances and Reserved for Encumbrances are related how
They are dr. and cr. in the same amounts when goods are ordered and received - therefore the only reason they would not have equal balances would be an error
What are revenue sources of Capital Project Funds
- these account for major acquisitions or construction activities of capital assets
- $ can come from special tax revenue,
- proceeds from bonds
- transfers,
- or capital grants
