FAR 9

Question 1

2 Statements included in Government-Wide Financial Statements

Answer 1

1. Statement of Net Position

2. Statement of Activities

Question 2

3 Components of Net Position

Answer 2

1. Net investment in capital assets
2. Restricted
3. Unrestricted

Question 3

Program Revenue Category Types : Government-Wide Financial Statements

Answer 3

1. Charges for Services
2. Operating Grants & Contributions
3. Capital Grants & Contributions

Question 4

Major Fund Rules

Answer 4

1. All assets/liabilities, revs/expense at least 10% of corresponding element total for all funds of its category type.

and

2. Element that met standard #1 is at least 5% of corresponding element total for all government & enterprise funds

Question 5

Major Fund Info

Answer 5

• General fund always considered a major fund

* Only proprietary funds used in determination of major and nonmajor funds are the enterprise funds

Question 6

Statement of Cash Flows: Notable Differences

Answer 6

1. Direct method required
2. Reconciliation of operating income to net cash provided by operations required
3. Additional category
4. Interest income/cash receipts reported as “investing activities” (not operating)
5. Capital asset purchases reported as “financing activities” not operating activities

Question 7

Statement of Revenues, Expenditures, Changes in Fund Balance Reconciliation

G.O.E.S.
B.A.R.E.

Answer 7

G. - GRSPP- net change in fund balance

O.- (other financing sources) associated with new debt or capital leases

E.- + Expenditure- capital outlay (net of depreciation & principal on debt service pymts)

S.- + Service (internal) fund net income

B.- Basis of accounting

A.- Additional accrued

R.- Revenues

E.- Expenses

Question 8

3 Sections of Comprehensive Annual Report (CAFR)

Answer 8

Not a GAAP requirement, GFOA designed presentation:

1. Intro section
2. Basic F/S and Required Supplementary Information
3. Statistical Section

Question 9

Government Wide F/S Classify Net Assets as….

Answer 9

1. Net investment in capital assets
2. Restricted
3. Unrestricted

Question 10

Required Financial Statements of NFP

Answer 10

1. Statement of financial position - B/S
2. Statement of activities - I/S & R/E
3. Statement of cash flows
4. Statement of functional expenses - req for VHW orgs

Question 11

Functional Classification of Expenses in NFP

Answer 11

1. Program support expenses - directly related to the organization’s program
2. Fund-raising expenses
3. Management & general costs

Question 12

Criteria to recognize donated services as contribution revenue & expenses for NFP

Answer 12

1. They create or enhance a non-financial asset (land building, inventory)
2. They require specialized skills that the provider possesses and would otherwise have been purchased by the org. (attorney, accountant, doctor).

Question 13

Requirements to not recognize donated collection items as contribution revenue in NFP

Answer 13

• All must be met, consistent treatment as well*
  1. Item is part of collection and not for investment or financial gain
  2. Collection cared for, preserved, protected by org
  3. Organization has policy that requires any proceeds from sale of donated items to be reinvested in other collection items.

Question 14

General principles on recipient accounting :NFP

Answer 14

Without variance power: no authority to redirect assets

Dr. Asset
Cr. Liability - to beneficiary

With variance power: authority to redirect assets

Dr. Asset
Cr. Contribution revenue

Question 15

Other revenues for Health Care Organizations

Answer 15

1. donated medical supplies
2. donated labor (similar reqs as NFP)
3. revenues from educational programs
4. cafeteria, parking, gift shop
5. gifts, grants

Question 16

Computation of patient service revenue:

Answer 16

Gross Patient Service Revenue

= Patient Service Revenue

Question 17

Voluntary Health & Welfare Organizations: Statement of Functional Expenses

Answer 17

Mandatory:

Detailed schedule of expenses, divided into functional areas, such as program services and support services.

Question 18

Cash Flows for Non-Governmental Not for Profit

Answer 18

Statement of cash flows format same as for-profit

Question 19

Reconcile funds balance of governmental funds to net position of governmental activities (balance sheets)

G.A.L.S. B.A.R.E.

Answer 19

G. GRSPP - fund balance

A.+ assets (non-current) of gov activities net of accum dep)

L. not recorded on fund financial statements

S. + Service (internal) fund net position

B.- Basis of accounting

A.- Accrued

R.- Revenues

E.- Expenses

• Do not include fiduciary fund net assets or prop fund net assets