Fund Accounting Flashcards
Test #1
Sources of GAAP and financial reporting standards (who does what)
FASB:
GASB:
FASAB:
(Financial Accounting Standards Board)
Used for business organization and non governmental Non Profit Organizations (NPOs)
(Governmental Accounting Standards Board)
Used for governmenatl organizations and governmental Non Profit Organizations (NPOs)
(Federal Accounting Standards Advisory Board)
used for the federal government and its agencies
Parts of the CAFR and what’s in each
Introductory Section: Title Page, Contents page, Letter of Transmittal, Organizational Chart
Financial Section: Auditors Report, Basic Financial Statements: GW Financial statements, fund financial statements (Government Funds & Proprietary Funds & Fiduciary Funds)
Statistical Section: Previous years data & Tables and Charts
Know the fund financial statements for governmental funds
Balance Sheet & Statement of revenues, expenditures, and changes in fund balance
Know the methods of accounting for the different types of funds
Governmental Funds Modified Accrual
Fiduciary Funds Accrual
Proprietary Funds Accrual
Definition of fund
Definition: “fund” is a separate fiscal and accounting entity with a self-balancing set of accounts; segregating financial resources, liabilities payable from fund resources, and fund equities to attain objectives specified by regulations, restrictions, or limitations
Know all examples in notes of each of the types of funds (governmental funds, proprietary, and fiduciary)
Fiduciary: Pension trust fund - Investment trust fund - Private Purpouse trust fund - Agency fund
Governmental: Capital project fund - General fund - special Revenue fund - Permenant fund - debt Service fund
Proprietary: Internal service fund - Enterprise Fund
Where is depreciation of capital assets recorded (which funds)
Government Funds: Don’t record depreciation
Government Wide Fund: Do record Depreciation
Business type funds: Do record Depreciation
What is a component unit
Component Unit: A legally separate organization for which elected officials of a primary government are financial accountable
What is a primary government
Primary Government: A state government - General purpose local governemnt - Special purpose government (has a separately elected governing body, legally separate, fiscally independent of other state or local governemnt)
It is a Reporting entity
What are the budgetary accounts?
Estimated Revenues: Debit Balance
Estimated Other Financing Sources: (OFS) - Debit Balance
Appropriations: (Planned Expenditures) - Credit Balance
Estimated Other Financing Uses: (OFU) - Credit balance
Encumbrances: (Temporary one to identify what you will spend) - Debit Balance (then reversed)
KNOW the journal entry to record the budget for the general fund
Budgetary Journal entries:
Estimated Revenues xxx debit
Budgetary Fund Balance xxx xxx either
Appropriations xxx credit
Subsidiary accounts:
Estimated Revenues Subsidary ledger debits
taxes xxx
etc… xxx
Appropriations Subsidary ledge credits
general governemnt xxx
Public Safety xxx
Public Works xxx
Culture and Recreation xxx
KNOW the other journal entries mentioned in the notes (when do we use encumbrance v. expenditure)
General Fund General Journal: debit credit
Encumbrances xxx
Reserved for Encumbrances xxx
Received what was ordered:
Reserved for Encumbrances xxx
Encumbrances xxx
Expenditures xxx
Vouchers Payable xxx
Extraordinary v. special items…where are they recorded on the financials?
Below the Line - at the bottom
