Government wide financial statements

Question 1

what are the basic financial reports prepared under Government wide financial statements ?

Answer 1

Statement of Net Position ( Balance sheet )

Statement of activities ( Income statement )

Question 2

How to conclude the net position ?

Answer 2

( Assets + Deferred out flows ) - ( liabilities + Deferred inflows )

Question 3

What are the main elements of net position for government wide financial statements ?

Answer 3

A) Net investment
B) restricted ( externally imposed - By law )
C) unrestricted ( includes anything else )

Question 4

What type of funds that is not included in the government wide financial statements ?

Answer 4

Fiduciary funds are excluded because they have specific beneficiaries and that government is not administratively involved in running this fund type

Question 5

how to treat payables and receivables when preparing government wide financial statements ?

Answer 5

All interfund transaction must be eliminated when preparing government wide financial statements except for fiduciary funds are not involved in these governmental settlements .

Question 6

What is the main grouping methodology when preparing government wide financial statements ?

Answer 6

Governmental GRaSPP + internal service fund both are included in the government activities column VS. proprietary enterprise fund are presented separably .

Question 7

what are types of Trust funds ?

Answer 7

1- Custodial fund
2- Investment trust fund
3- Private purpose trust fund
4- Pensions and other emp. benefits trust fund

Question 8

what is the sequence of income statement for proprietary enerprise fund ?

Answer 8

IN-CASET

Operating income
Non operating income
Capital assets contributed

Question 9

JV :City council adopts an annual budget for the general fund with estimated revenues of $1,700,000, appropriations of $1,500,000, and approved transfers of $120,000.

Answer 9

General Fund
Estimated Revenues $1,700,000

         Appropriations                               $1,500,000

         Estimated Other Financing Uses      120,000

         Budgetary Fund Balance                      80,000

Governmental Activities

budget entries are not reported

Question 10

JV :Property taxes of $1,300,000 are levied. City expects to collect all but 3% of taxes.

Answer 10

General Fund

Property Taxes Receivable $1,300,000

        Allowance for Uncollectible Tax        39,000

        Revenues                                         1,261,000

Governmental Activities

Property Taxes Receivable $1,300,000

        Allowance for Uncollectible Tax        39,000

        Revenues                                          1,261,000

Question 11

JV : Two new police cars are ordered for $150,000.

Answer 11

Encumbrances $150,000

         Fund Balance Reserved                  $150,000

Question 12

JV : A transfer of $50,000 is made from the general fund to the debt service fund.

Answer 12

General Fund

Other Financing Uses- Transfer Out $50,000

      Cash                                                            50,000

Debt Service Fund

Cash 50,000

    Other Financing Sources                   50,000

Question 13

JV :A bond payable of $40,000 is paid along with $10,000 in interest.

Answer 13

Debt Service Fund

Expenditures- Principal 40,000

Expenditures- Interest 10,000

       Cash                                      50,000

Governmental Activities

Bonds Payable 40,000

Interest Expense 10,000

     Cash                              50,000

Question 14

JV :A $2,000,000 bond is issued at face to acquire a building to convert to a school.

Answer 14

Capital Projects Fund

Cash 2,000,0000

    Other Financing Sources-       2,000,0000

Governmental Activities

Cash 2,000,000

  Bonds Payable       2,000,000

Question 15

JV :The two police cars are received with an invoice for $152,000.

Answer 15

General Fund

Fund Balance Reserved

For Encumbrances 150,000

         Encumbrances                        150,000

Expenditures 152,000

        Vouchers Payable                    152,000

Governmental Activities

Vehicles 152,000

     Vouchers Payable         152,000

Question 16

JV : The building for the school is acquired for $2,000,000 cash.

Answer 16

Capital Projects Fund

Expenditure 2,000,0000

        Cash                                      2,000,000

Governmental Activities

Building 2,000,000

         Cash                           2,000,000

Question 17

Depreciation on the new police cars is computed as $30,000.

Answer 17

General fund
No depreciation

Governmental Activities

Depreciation Expense 30,000

           Accumulated Depreciation             30,000

Question 18

The city borrowed $100,000 on a 90-day note.

Answer 18

General Fund

Cash 100,000

    Notes Payable                 100,000

Governmental Activities

Cash 100,000

    Notes Payable                 100,000

Question 19

A special assessment project is begun. The city sells $80,000 in bonds at face to finance the project. If the debt is not paid by the assessments collected, the city has pledged to guarantee the debt.

Answer 19

Capital Projects Fund

Cash 80,000

    Other Financing Sources-                 80,000

Governmental Activities

Cash 80,000

      Bonds Payable               80,000

Question 20

how to report component unit discretely and when to use the blended method ?

Answer 20

SELF
separately elected
legally independent
fiscally independent

if a component unit meets theses criteria it must be reported separably as primary government if no its component unit and then if no its a component unit

Question 21

When does a component unit blended with primary government and when to be reported separately ?

Answer 21

Board is the same
serving the primary government exclusively

However most component units should be reported discretely in the normal case

Question 22

what is the rule for major fund status / presentation

Answer 22

10% Test

The GRSPP funds is compared individually with the total governmental fund if its more than 10%

5% Test

Question 23

what are other considerations when determenting major fund statuss other than 10 & 5 % percent tests ?

Answer 23

• Government can elect any fund as major
• General fund is always considered major fund
• internal service fund is out of the test calculation

Question 24

where do the reconciliation between government wide and funds appears on the financial statements?

Answer 24

it may appear on the face of funds financial statements or on the note to government ide financial statements

Question 25

what are required supplementary information required to be included on the CAFR ?

Answer 25

Pensions
Budgetary comparison
infrastructure