Government Wide FS Flashcards
Interfund transaction types
operating transfer: transfer of cash from one fund to another. does not need to be returned in the future.
quasi-external transfer: payment from one fund to another for goods/services
reimbursements: repayment from one fund to the other for costs paid by the fund on the other’s behalf
loans: temporary transfer between funds, to be repaid at a later date
Operating Transfer - modified accrual to accrual transfer
interfund transactions
government fund (modified accrual accounting):
other financing use DR
cash CR
proprietary/fiduciary fund (accrual accounting):
cash DR
other revenues CR
Operating Transfer - accrual to modified accrual transfer
interfund transactions
proprietary/fiduciary fund (accrual accounting):
other expense DR
cash CR
government fund (modified accrual accounting):
cash DR
other financing source CR
Quasi-external Transfer - modified accrual to accrual transfer
interfund transactions
government fund (modified accrual accounting):
expenditure DR
cash CR
proprietary/fiduciary fund (accrual accounting):
cash DR
revenues CR
Quasi-external Transfer - accrual to modified accrual transfer
interfund transactions
proprietary/fiduciary fund (accrual accounting):
expense DR
cash CR
government fund (modified accrual accounting):
cash DR
revenues CR
Reimbursements - ensured
interfund transactions
EXPENDITURE
transferor (reimburser)
expenditure/expense DR
due to fund CR
transferee (reimbursee)
due from fund DR
cash CR
REPAYMENT
transferor:
due to fund DR
cash CR
transferee:
cash DR
due from fund CR
Reimbursements - not ensured
interfund transactions
EXPENDITURE
transferor (reimburser)
expenditure/expense DR
due to fund CR
transferee (reimbursee)
expenditure/expense DR
cash CR
REPAYMENT
transferor:
due to fund DR
cash CR
transferee:
cash DR
expenditure/expense CR
Loans - journal entries
interfund transactions
LOAN
Lender:
due from fund
cash
Borrower:
cash
due to fund
REPAYMENT
Lender:
cash
due from fund
Borrower:
due to fund
cash
MD&A - management discussion & analysis
Required by GASB in FS
Basically a self-evaluation; introduces the FS and gives an analytical overview of the financial activities.
Discusses CY v PY w/ emphasis on CY. Focuses on the primary govt entity.
Analysis of overall financial position and results of operations, including reasons for change v PY.
Analysis of significant variations b/w original and final budget for general fund.
What is the BS equivalent for govt-wide FS?
govt-wide FS
Statement of net position
What is the IS equivalent for govt-wide FS?
govt-wide FS
Statement of activities
What comprises the statement of net position?
govt-wide FS
+ assets
+ deferred outflow of resources (i.e. prepaids)
- liabilities
- deferred inflow of resources (i.e. unearned rev)
= net position
What are the categories for retained amounts in the net position?
govt-wide FS
invested - already invested into certain assets
restricted - can’t be used freely
unrestricted - can be used freely
Test to determine if a separate entity is a component unit
govt-wide FS
Autonomous legally separate unit that satisfies either of the conditions below is a component unit:
1) Primary govt is fiscally accountable for the unit; the unit raises and holds economic resources for the direct benefit of the primary govt.
2) Close financial relationship w/ primary govt, such that exclusion from FS would be misleading
Discreet v. blended presentation of component units on FS
govt-wide FS
Discreet presentation:
1) services provided by the component unit are not primary to the govt, AND
2) mgmt of the component unit consists of separately elected officials
Otherwise, blended in with govt activities or business activities
What are infrastructure assets?
infrastructure
Infrastructure assets: roads, highways, bridges, etc
What is the preferred method of accounting for infrastructure assets?
infrastructure
Capitalize and depreciate like traditional PPE
What is the modified approach of accounting for infrastructure assets?
infrastructure
Capitalized, but not depreciated (assumed to last forever)
Govts may use modified approach if they can demonstrate that the regular costs incurred to maintain the asset give it an indefinite life. Whatever is spent to maintain the asset is expensed.
What are the two criteria required for demonstrating indefinite lived assets under the modified accounting approach?
infrastructure
The govt must have an asset management system
The govt must document how the assets are being preserved at a minimum level established by the govt.
How to treat repairs and maintenance costs under the modified accounting approach?
infrastructure
increase the life of the asset: expense
increase the size and performance: capitalize
