Government Flashcards
funds available = ?
budget - actuals - encumbrances
net property tax for current year?
current year collections for property taxes + next year first 60 days collections
minimum reporting requirements for general purpose external financial statements?
MD&A, government-wide and fund financial statements w/ notes to financial statements and RSI
when can a government capitalize interest on construction of a capital asset for business purpose?
when it is a qualifying asset: when it is used for it’s own use
what is a letter of transmittal?
it is the checklist for the introduction of a comprehensive financial annual report (CFAR)
what method of accounting does government wide financial statements use?
accrual, not modified accrual. distinguish between government and business type. information about fiduciary funds should not be included.
what is a major fund?
- total assets, liabilities, revenues or expenditures are at least 10% of that category, government or capital fund
- total assets, liabilities, revenues or expenditures at at least 5% of that category, government and capital fund together
- general fund is always a major fund
what are the 3 major state and local fund groups?
governmental, proprietary, fiduciary
what are the 5 types of governmental funds?
general, special revenue, capital projects, debt service, special assessment
what does modified accrual mean?
funds are not accrued unless available and measurable
what is an encumbrance? journal entry?
it is a commitment of funds to an unperformed contract for goods and services. but not an expenditure
encumbrance xxx
fund balance – reserve for encumbrance xxx
what info do governments need to disclose regarding debt and leases, according to GASB?
principal and interest recorded separately, for each of the following 5 years, followed by reports every 5 years after
what does “balanced budget” mean?
a government or state cannot spend more than the budget.
what does “interperiod equity” mean?
that taxpayers are not paying for deferred benefits – the taxes go to support currently enjoyed services.
what does “current financial resources measurement focus” mean?
value and report fund balances as measure of available, spendable, or appropriable resources. only current assets and liabilities reported. no fixed assets.
what does “economic resources measurement focus” mean?
focus on determining the costs of services and efficiency of invested capital. all assets and liabilities on balance sheet. net assets analyzed and reported separately as restricted, unrestricted, and invested in property and equipment (net of debt). fixed assets reported.
what are the basic financial statements for a government?
government-wide financial statements, fund financial statements, and notes to the financial statements
what does a government wide financial statement consist of?
statement of net position and statement of activities
what situations is capitalization optional for government-wide accounting?
1 - held for public exhibition and not gain
2 - to be protected and preserved
3 - policy in place to use proceeds of sale to acquire other items
what is the fund equity aka fund balance?
fund assets - fund liabilities. usually divided into existing restrictions, assignments, and commitments
how are interfund transfers with no repayment recorded?
other financing uses
what are the minimum requirements for a general purpose external government financial statement?
MD&A, government and fund financial statements w/ notes to the financial statements, and RSI
