FAR 9 & FAR 10 Flashcards
Encumbrances
Purchase orders, obligation to spend
JE to set up an Encumbrance
Dr: Encumbrances
Cr: Budgetary control
JEs when actual cost is known
Dr: Budgetary control
Cr: Encumbrances (pure reversal)
Dr: Expenditures
Cr: Vouchers payable/cash
JE to record reclass of fund balance relative to outstanding prior year POs
Dr: Unassigned fund balance (year-end surplus)
Cr: Fund balance, committed
*Will roll forward any free to use cash that is actually committed
Special items vs Extraordinary items
Special = unusual or infrequent Extraordinary = unusual and infrequent
Categories of fund balance
NU CAR
- Nonspendable
- Unassigned
- Committed
- Assigned
- Restricted
Integrated approach to financials reporting
1) MD&A
2) Government-wide FS and Fund FS (reconcile)
3) Required supplementary information
Primary government governmental activities
GRaSPP + S
Primary government business-type activities
E (Not CIPPOE)
Major funds
1) Must be 10% of governmental OR enterprise funds
2) AND 5% of total of the two
Reconciliation of the Balance Sheet of Governmental Funds to the Government-wide Statement of Net Position
CAN S(IT) Beg: Governmental Fund balance 1) difference in measurement focus \+Capital (non current) assets -Accumulated depreciation -Long term debt (non current liabilities) 2) difference in basis of accounting \+ eliminated deferred inflows - accrued interest payable \+ Internal service fund net position End: Net position from governmental activities
Reconciliation of Revenues, Expenditures, and changes in fund balance to the government-wide statement of activities
CPAS RIDE or S(IT) Beg: Governmental Fund balance 1) difference in measurement focus \+Capital outlay \+Principal payments on non current debt -Asset disposals -Sources of funds (debt proceeds) 2) difference in basis of accounting \+Revenue -Interest expense accrued -Depreication \+Internal service fund net revenue
