governmental accounting Flashcards
primary objective:
- provide information that is useful and benefits a wide range of users including:
- cost of services provided
- sufficiency of revenues to cover costs
- financial position of the entity
fund types
-governmental
fiduciary
propritary
fund accounting - two types
accrual basis:
- current economic resources focus
- revenues recognized when earned
modified accrual basis
- current financial resources
- recognized when available and measurable
budget estimates: appropriation and encumbrances are
appropriation: highest amount allowed for an expenditure
encumbrances: records purchases and reserves it
opening budgetary entry
dr. estimated revenue control
credit appropriation control
dr/cr budgetary fund balance (plug)
general fund is the
“operating” fund of the governmental unit.
-records significant revenues, taxes, tickets, fines, licenses.
records significant expenditures
special revenue fund
restricted for a specific purpose as a street repair.
permanent fund
legally restricted.
only earnings can be used to fund programs.
principle remains intact
capital projects fund
used to acquire and build facilities.
debt service fund
handles repayment of long term debt and interst payments.
government funds statements:
- balance sheet
- statement of revenues, expenditures, and changes in fund balance.
drived tax revenue?
- collected by people “doing things.
ex. buying cars -> sales tax
going to work -> income tax
imposed tax revenue?
assessed just because things “exist”
- property tax on car
- real estate tax
- recorded as revenue when budgeted.
do you net uncollectible property tax?
NO!!
estimated uncollectible property tax revenues don’t offset revenues, so don’t net them
priorietary funds statements?
- statement of net assets
- statement of revenues, expenses, and cahnges in net assets
- statement of cash flows.
fiduciary funds?
agency fund - acts an agent or a custodian
pension trust fund - government is a trustee for a pension plan
investment trust fund - government is trustee over a series of investments
private purpose trust - trust that benefits various individuals and entities
fidicuiary fund balance types
restricted - restricted by contributor
commited - less strict
assigned - intended to used for a purpose
unassigned - available to be spent
-nonspendable - not in a spendable state (inventory)
fiduciary fund financial statements
- balance sheet
- statment of revenue ,expenditures &N changes in fund balance
government-wide financial statements
-staemnet of net position and statement of activities
-prepared on an accural basis
-focus is on economic measurement
purpose is to provide operational accountability
statement of net position of government-wide financial statements?
need to know order:
- assets (current & non-current)
- deferred outflows of resources
- liabilities (current and non-current)
- deferred inflows of resources.
orderd by liquidity
capital assets are shown net of debt on government-wide financial statements
asset cost
-accumulated depreciation
-asset liabilities
net assets
.
-if the activities of a component are distinguishable from the rest of hte governmental entity, then discrete presentation is required
-if the activites of the component are not distinguishable, then blended presentation is warranted.
component units are reported in teh entity wide financial statements and not the fund financial statements.
defined benefit pension plans changes
financial statements required.
- statement of fiduciary net position
- assets
- deferred outflows
- liabilities
- deferred inflows
- fiduciary net position
statement of changes in net position of benefit pension plans
statement of changes in fiduciary net position
additions
-contributions
-net investment income
- deductions
- benefit payments
- admin expense
- net change in fiduciary net position.
defined benefit pension plans financial statement notes:
-types of benefits provided
-plan member classes
-board of directors information
-investments
policies
fair value determination.
