Governmental Accounting Flashcards
The three primary user groups of the external financial reports of a state government
The citizenry who the government is accountable to
Legislative & oversight bodies who represent the citizenry
Investors & creditors
Four financial reporting implications associated with the legally adopted annual budget
Expression of public policy
Expression of financial intent
Form of control
May provide basis for evaluating performance
Paramount objectives of financial reporting for state and local governments
Accountability
Interperiod Equity - makes sure current generation of citizens doesn’t shift the burden of paying their shit to the next generation
Government Funds
General Fund
Special Revenue Fund
Capital Projects Fund
Debt Service Fund
Permanent Fund
They use Modified Accrual Accounting & flow of financial resources - available & measurable
Proprietary Funds
Enterprise Fund
Internal Service Fund
They use full Accrual Accounting
Fiduciary Funds
Custodial Funds
Pension Trust Funds
Investment Trust Funds
Private-Purpose Trust Funds
Budgetary Accounting Journal Entries
Balanced Budget
Dr. Estimated Revenues 100
Cr. Appropriations 100
Surplus Budget
Dr. Estimated Revenues 110
Cr. Appropriations 100
Cr. Fund Balance 10
Deficit Budget
Dr. Estimated Revenues 90
Dr. Fund Balance 10
Cr. Appropriations 100
Which funds need a budgetary comparison schedule
General fund & major special revenue funds
Other Financing Uses and Other Financing Sources
Other financing uses are transfers out to other funds while other financing sources are transfers in from other funds
Effects of closing accounts on fund balance
Closing credit accounts like appropriations & actual revenues would increase fund balance and closing debit accounts like expenditures & estimated revenues would decrease fund balance so if a credit balances are greater than debit balances then fund balance increases and vice versa
Encumbrance accounting journal entires
Purchase order issued
Dr. Encumbrances
Cr. Budgetary Fund Balance
Purchase order filled
Dr. Budgetary Fund Balance
Cr. Encumbrances
Goods received
Dr. Expenditures
Cr. Vouchers Payable
When there is a difference between the encumbrance amount and the actual amount
The encumbered amount is reversed and recorded at the actual amount
Deferred outflows & inflows of resources for government wide statement, proprietary funds, and fiduciary funds
[Assets + Deferred outflows] minus [Liabilities + Deferred inflows] equals Net Position
Deferred outflows & inflows of resources for government funds
[Current Assets + Deferred outflows] minus [Current liabilities + deferred inflows] equals fund balance
Deferred revenue journal entry
When you receive money
Dr. Cash
Cr. Deferred inflow
You the money is recognized
Dr. Deferred inflow
Cr. Revenue
Categories for Statement of Net Position
Net investments in capital assets - subtract depreciation and any debt associated with the asset
Restricted
Unrestricted
Categories for Fund Balance
Nonspendable - not in a spendable form like inventory or contractually has to remain intact
Restricted - by external parties or enabling legislation
Committed - imposed by highest level of government
Assigned - government expresses intent
Unassigned - positive amount for general and negative for every other fund
Enterprise Statement of Cash flows sections
Operating - excludes interest
Capital & Related Financing - shit for capital and for private sector it would be called investing section
Noncapital Financing - financing activities not related to capital
Investing - investments, interest & dividends. loans made & collected
3 Sections of CAFR
Introductory
Financial
Statistical
Introductory section of CAFR
Letter of Transmittal
Organizational Chart
Principal Offers
Other
Financial Section of CAFR
Independent Auditor's Report Management Discussion & Analysis Basic Financial Statements RSI Combining statements & individual fund statements
Statistical Section of CAFR
Financial trends Revenue capacity Debt capacity Demographic & economical Operating information Other
Basic financial statements for Financial section of CAFR
Government wide statements
Fund Statements
Notes to the Financial statements
Government wide Statements
Statement of Net Position
Statement of Activities
Does not include date on fiduciary shit and split into governmental & business activities
