Government wide financial statements Flashcards
what are the basic financial reports prepared under Government wide financial statements ?
Statement of Net Position ( Balance sheet )
Statement of activities ( Income statement )
How to conclude the net position ?
( Assets + Deferred out flows ) - ( liabilities + Deferred inflows )
What are the main elements of net position for government wide financial statements ?
A) Net investment
B) restricted ( externally imposed - By law )
C) unrestricted ( includes anything else )
What type of funds that is not included in the government wide financial statements ?
Fiduciary funds are excluded because they have specific beneficiaries and that government is not administratively involved in running this fund type
how to treat payables and receivables when preparing government wide financial statements ?
All interfund transaction must be eliminated when preparing government wide financial statements except for fiduciary funds are not involved in these governmental settlements .
What is the main grouping methodology when preparing government wide financial statements ?
Governmental GRaSPP + internal service fund both are included in the government activities column VS. proprietary enterprise fund are presented separably .
what are types of Trust funds ?
1- Custodial fund
2- Investment trust fund
3- Private purpose trust fund
4- Pensions and other emp. benefits trust fund
what is the sequence of income statement for proprietary enerprise fund ?
IN-CASET
Operating income
Non operating income
Capital assets contributed
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.
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
JV :Property taxes of $1,300,000 are levied. City expects to collect all but 3% of taxes.
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
JV : Two new police cars are ordered for $150,000.
Encumbrances $150,000
Fund Balance Reserved $150,000
JV : A transfer of $50,000 is made from the general fund to the debt service fund.
General Fund
Other Financing Uses- Transfer Out $50,000
Cash 50,000
Debt Service Fund
Cash 50,000
Other Financing Sources 50,000
JV :A bond payable of $40,000 is paid along with $10,000 in interest.
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
JV :A $2,000,000 bond is issued at face to acquire a building to convert to a school.
Capital Projects Fund
Cash 2,000,0000
Other Financing Sources- 2,000,0000
Governmental Activities
Cash 2,000,000
Bonds Payable 2,000,000
JV :The two police cars are received with an invoice for $152,000.
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
JV : The building for the school is acquired for $2,000,000 cash.
Capital Projects Fund
Expenditure 2,000,0000
Cash 2,000,000
Governmental Activities
Building 2,000,000
Cash 2,000,000
Depreciation on the new police cars is computed as $30,000.
General fund
No depreciation
Governmental Activities
Depreciation Expense 30,000
Accumulated Depreciation 30,000
The city borrowed $100,000 on a 90-day note.
General Fund
Cash 100,000
Notes Payable 100,000
Governmental Activities
Cash 100,000
Notes Payable 100,000
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.
Capital Projects Fund
Cash 80,000
Other Financing Sources- 80,000
Governmental Activities
Cash 80,000
Bonds Payable 80,000
how to report component unit discretely and when to use the blended method ?
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
When does a component unit blended with primary government and when to be reported separately ?
Board is the same
serving the primary government exclusively
However most component units should be reported discretely in the normal case
what is the rule for major fund status / presentation
10% Test
The GRSPP funds is compared individually with the total governmental fund if its more than 10%
5% Test
what are other considerations when determenting major fund statuss other than 10 & 5 % percent tests ?
- Government can elect any fund as major
- General fund is always considered major fund
- internal service fund is out of the test calculation
where do the reconciliation between government wide and funds appears on the financial statements?
it may appear on the face of funds financial statements or on the note to government ide financial statements
