FARE 9 Governmental Accounting Flashcards
The basic sections of external financial reports for governmental entities using the integrated reporting model
- Management’s discussion and analysis
- Government-wide financial statements
- Fund financial statements
- Notes to the financial statements
- Required supplementary info
What sections of the external financial reporting model represent the basic financial statements?
- Government-wide financial statements
- Fund financial statements
- Notes to the financial statements
The detailed external financial reporting requirements:
Reporting government-wide statements
- Statement of net assets
2. Statement of activities
The detailed external financial reporting requirements:
Reporting governmental fund financial statements
- Balance sheet
- Statement of revenues, expenditures, and changes in fund balances
- Reconciliation to the government-wide statements
The detailed external financial reporting requirements:
Reporting proprietary fund finanacial statements
- Balance sheet/Statement of net assets
- Statement of revenue, expenses, and changes in fund net assets
- Statement of Cash Flows - direct format
The detailed external financial reporting requirements:
Reporting fiduciary fund financial statements
- Statement of fiduciary net assets
2. Statement of changes in fiduciary net assets
The detailed external financial reporting requirements:
Combining statements for major component units
- Statement of net assets
2. Statement of activities
The detailed external financial reporting requirements:
Note to the financial statements
- Schedule of changes in capital assets
2. Schedule of changes in long-term liabilities
The detailed external financial reporting requirements:
Required suppl. info
- MD&A
- Budgetary comparison schedules
- Pension and infrastructure info
CAFR
CAFR: Comprehensive Annual Financial Report
CAFR includes
- Introductory section
- Basic financial statements and required suppl. info
- Statistical section
CAFR’s introduction section includes
Letter of transmittal
Organization chart
List of principal officers
CAFR’s basic FS and suppl. info includes
MD&A
Government-wide FS
Fund FS
Required suppl. info
Minimum disclosure requirements on the government-wide statement of net assets
Primary government 1. Government activities 2. Business type activities 3. Total primary government activities Discretely presented component units
Management’s Discussion & Analysis includes info:
Description of the basic FS Primary government Discrete component units Economic conditions and outlook Major initiatives
Components of net assets displayed on govern-wide FS
Invested in capital assets, net of related debt
Restricted
Unrestricted
Infrastructure assets
Streets, bridges etc
Reported as assets in the g-w FS
Historical cost
Depreciated (unless some conditions met)
Donated works of arts
Capitalized unless displayed and proceeds from any future sales are going to be reinvested in other works
Eliminating entries
Interfund activities between funds that are consolidated within governmental or business type reporting categories are eliminated when preparing G-W FS
The components of program revenues in the statement of activities
Service charges
Operating grants and contributions
Capital grants and contributions
State the reporting treatment of internal service funds
Internal service funds reported in proprietary funds, but should be in the governmental activities column of G-W FS unless the government’s enterprise funds are the primary recipient of internal service fund services
Format of the G-W statement of activities
Net cost format:
- Revenues separated into program revenues and general revenues
- Expenses are reduced by program revenues resulting in net expenses/revenue and changes in net assets
- General revenues, extraordinary items, and special items are reported separately
- Results in change in net assets
Threshold for identification as a major fund
Total assets, liabilities, revenues or exp of the individual fund are at least 10% or more total of all major funds
5% of total of all governmental and enterprise funds combined
Reconciling items between fund balance accounts displayed on the BS of the governmental funds FS and net assets displayed in the G-W FS
Governmental Fund Equity \+ Assets noncurrent - Long term debt \+ Internal Services Fund net assets Basis of accounting Accrual differences resulting in receivables and payable Revenue converted from modified to full accrual or Expenses
Reconciling items between fund balance accounts displayed on the statement of the revenue expenditures and changes in fund balances in the governmental funds FS and the change in net assets displayed in the G-W FS
Governmental fund changes in fund balance
+ other financing sources
Expenditure-capital outlay (net of depreciation) principal payments on debt
Service (internal) fund change in net assets may need to be added
Basis of accounting
Statement of Cash flows is prepared for:
Proprietary funds
Sections of the statement of cash flows
Cash flows from activities: operating noncapital financing capital and related financing investing
Types of interfund transactions
Reciprocal interfund activity
Nonreciprocal interfund activity
Reciprocal interfund activity
Interfund loans
Interfund services provided and used
Nonreciprocal interfund activity
Interfund transfers
Interfund reimbursements
Primary government
represented by a general-purpose government that stands by itself: Separately Elected boards Legally separate entity Financially self-sufficient
Component unit
Does not meet criteria of a primary government
Intertwined with the primary government
Methods available for reporting component units of a primary government in the primary government’s FS
Blended
Discrete
Describe blended, method available for reporting component units of a primary government in the primary government’s FS
Blended: consolidated with the primary government
Describe discrete, method available for reporting component units of a primary government in the primary government’s FS
Discrete: Shown in a separate column as a component unit
The criteria for blended presentations of component units
Blended: when the component unit is the same as the primary government:
- a board of the component unit is the same
- serves the primary government exclusively
- not a legal entity
The criteria for discrete presentations of component units
when the criteria for blended presentation are not met.
Blended: when the component unit is the same as the primary government:
- a board of the component unit is the same
- serves the primary government exclusively
- not a legal entity
The basic criteria used to determine the reporting entity for a governmental unit
The reporting entity is an oversight unit and all related component units. The basic criteria include financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, and accountability of fiscal matters.
