Governmental Flashcards
Government Wide Financial Statements
display information about the reporting government as a whole, except for its fiduciary activities. include separate columns for the governmental and business type activities of the primary government as well as for its component units.
Primary Government
includes blended component units. The reporting entity’s financial statements should present the primary government (including its blended component units) and provide an overview of the discretely presented component units.
Primary Government Criteria
- It has a separately elected governing body, it is legally separate and
- It is fiscally independent.
fiscally independent:
- determine its budget,
- levy taxes without approval, and
- issue bonded debt without approval by another government.
Management Discussion and Analysis
allows management to highlight significant issues and discuss key issues from the financial statements.
Noncapital Financing
include cash receipts from grants and subsidies except (1) those specifically restricted for capital purposes and (2) those for specific activities that are considered to be operating activities of the grantor government.
Operating Activities
cash inflows, receipts, and payments that do not result from transactions defined as capital and related financing, noncapital financing, or investing activities.
Financing Activities
acquiring and disposing of capital assets; borrowing money for acquiring, constructing, or improving capital assets
Investing Activities
making and collecting loans (except program loans) and acquiring and disposing of debt or equity instruments.
Statement of Cash Flows should be presented for which funds?
all proprietary funds, but not for governmental funds.
Component Unit Discrete Presentation
unless either (a) the components unit’s governing body is substantively the same as the governing body of the primary government, or (b) the component unit provides services almost entirely to the primary government, or almost exclusively benefits the primary government although it does not provide services directly to it.
Consolidated Component Unit Data Presentation
in either the notes to the financial statements or in combining statements in the basic financial statements
Pension Plan Reporting
in the fund financial statements, but not the government-wide statements. Fiduciary statements should include financial information for fiduciary funds and similar component units.
Other Postemployment Benefits
Most entities fund their OPEB on a pay-as-you-go basis, paying only the amount equal to benefits claimed. The objective is to systematically and rationally allocate the present value of the projected cost of benefits over the working life of benefiting employees.
Annual Required Contribution
The amount allocated to a given year
Actuarial Accrued Liability
The present value of benefits earned to date by employees.
Discrete Presentation
(1) economic resources received or held by the separate entity are totally (or nearly totally) for the direct benefit of the primary government, its component units, or its constituents; (2) the primary government, or its component units, is entitled to a majority of the economic resources received or held by the separate entity; and (3) the economic resources received or held by an individual entity that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to that primary government.
Management Discussion and Analysis Attributes and Presentation
provides an analysis of the government’s financial performance for the year, provides comparisons of the current-year results to the previous year, and discusses both the positive and negative aspects of the comparison. Overall, the emphasis should be on the current year and the focus should be on the primary government. Although considered RSI, the MD&A is presented before the basic financial statements.
Reporting of General Government Fixed Assets and Long Term Debt
General government fixed assets and long-term debt are not recorded in the governmental funds, but are shown in the governmental activities column of the governmental-wide financial statements.
Presentation of Budgetary Comparisons
part of required supplementary information (RSI).
MD & A Cassification
required supplementary information, not basic financial statements.
Basic Financial Statements
both government-wide and fund financial statements along with the accompanying notes.
CAFR Statistical Section: Types of Operating Information
number of government employees, operating indicators, and capital asset information.
Contribution to Pension Trust Fund
Governmental-type funds record contributions to the pension trust fund as expenditures.
Note Disclosures: Cash and Cash Equivalents
explain how cash equivalents are classified in the beginning and ending balances on the cash flows statement.
Note on Significant Accounting Policies
include descriptive comments about the purposes and scope of the statements of net position and activities. only focus on the government-wide statements and does not include comments about other or required supplementary information.
Concepts Statement Number 1
Assisting users with an assessment of the government’s operating results, level of services provided, and the ability to meet cash requirements
Government Primary Mission
the delivery of programs and services.
GASB Concepts Statements
provide the basic building blocks for the specific accounting reporting standards.
multiple-jurisdiction deferred compensation plan (administrator)
report all of the plan assets and liabilities in Custodial Fund because the governmental unit is acting as an agent for both its own employees and other governments participating in the plan.
Modified Accrual Revenue
susceptible to accrual at the time they become measurable and available for use
Modified Accrual Deferred Revenue
Significant amounts received prior to the normal collection time (such as prepaid property taxes)
Interperiod Equity
using the revenues from one period to pay for the expenditures of that same period and that period only.
Residual Equity Transfers
are between funds, not between periods.
GASB’s Mission
providing a framework to educate users and support public policies, investments, and management by those users.
Governmental Fund Measurement Focus
The governmental fund measurement focus is on determination of financial position and changes in financial position, rather than on net income determination. primary emphasis is on the flow of financial resources.
Entity’s First IFRS Financial Statements
include at least three statements of financial position, two statements of profit or loss and other comprehensive income, two separate statements of profit or loss (if presented), two statements of cash flows, and two statements of changes in equity and related notes.
IFRS 1
The entity presenting its most recent previous financial statements in accordance with national requirements, using some individual IFRS to account for items for which national requirements do not exist
Concepts Statement No. 3
describes the importance of the GASB’s independence for establishing communication principles in the reporting standards to support governments’ credibility and enhance comparability among external financial statements.
FASB Approval Process
After a project is added to the technical agenda, the FASB deliberates at one or more public meetings. If deemed necessary the FASB then issues an Exposure Draft to solicit broad stakeholder input and holds a public roundtable meeting on the Exposure Draft, if necessary. ratifies amendments to the Accounting Standards Codification by issuing an Accounting Standards Update.
Custodial Fund
used to report resources held by the reporting government in a purely custodial capacity (assets equal liabilities).
These funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments.
have neither capital assets nor expenses, and as such would not have depreciation expense.
Budgetary Comparisons
part of required supplementary information (RSI).
Modified Accrual Accounting
Interest and principal on long-term debt are not recorded until the periods in which they must be paid.
Note on Significant Accounting Policies
include descriptive comments about the purposes and scope of the statements of net position and activities.
Enterprise Fund
one of the proprietary funds. Governments should present a statement of cash flows for proprietary funds
Direct Method
direct method of presenting cash flows from operating activities (including a reconciliation of operating cash flows to operating income) should be used.
Investment Trust Fund
accounts for resources (and related liabilities) held by governments in a trustee capacity, it is considered a fiduciary fund type. Required statements for fiduciary funds are (1) statement of fiduciary net position and (2) statement of changes in fiduciary net position.
Data for Individual Component Units (if consolidated)
presented in either the notes to the financial statements or in combining statements in the basic financial statements
General Governmental Fixed Assets and Long Term Debt
not recorded in the governmental funds, but are shown in the governmental activities column of the governmental-wide financial statements. General long-term debt to be repaid from general resources of the government should not be reported in any fund.
