Governmental Accounting 2 / Non-Profits Flashcards
GOES
for change in net position on govt - wide financial statements
Changes in GOV Fund balance
+ Other Financing Sources
+ Expenditure Capital Outlays, net of depreciation
+ Internal Svc. Fund Net Income
GASB 34 requirements:
Presentation of basic financial statements and req. supplementary information
-gov’t-wide financial statements,
fund financial statements,
notes to financial statements
gov’ts Comprehensive Annual Financial Report (CAFR) is three sections…
MD&A, Basic Financial Statements, RSI
What are criteria for major funds?
revs, expenditures, assets, liabilities that are at least 10% of the associated total for ALL governmental OR enterprise (as appropriate)
AND at least 5% of associated totals for ALL government AND enterprise funds
In preparing govt-wide financial statements for a governmental entity, interfund receivables and payables bETWEEN government and enterprise funds should be reported as:
Internal Balances
this way they are not eliminated, but they balance to Zero
What is unassigned fund balance?
Unassigned fund balance represents the amount of current resources carried forward into the following year, that will be available for appropriations
Governmental: Cash Flows Non-capital Financing
Includes:
- proceeds not attributable to acquisition construction or improvement of capital assets
- property taxes
- cash paid to other funds (Other than interfund)
Interest expense and interest payable calculations for government bonds?
Interest expense =
$1Mil * .06 * 10 of the 12 months in the year happened (doesn’t matter about semi-annual) = $50,000
Interest payable =
$1mil * .06 * 4 (4months that have passed since semi-annual interest date of Sept. 1) = $20,000
GOES BARE for changes in gov’t Net Position…
G- GRaSPP changes (EG opening bal)
O- Other financing source (uses: eg less proceeds from LT debt)
E- Expenditures / capital outlay (net of depreciation), principal on debt service payments (EG Capital outlay - depreciation expense + Payments of principal)
S- Service (internal), related to internal service funds
B- Basis of accounting issues? (eg modified to full accrual)
A- Accrual of additional
R- Revenue (Eg add sales tax revenue)
E- Expenses (Less the interest payable)
Reporting status of a government: can it stand alone by it “SELF?”
S- Separate
E- Elected governing body
L- Legally separate entity
F- Financially independent status
*Govs that meet all THREE criteria are primary governments
For Gov: what’s mandatory in RSI?
Final amended budget, actual financial performance on basis of budget, originally adopted budget
noncap financing activities
cap. and related financing activities
investing activities
operating activities
non-cap: borrowing money for non-capital purposes as well as cash receipts from grants/subsidiaries (EG operating grants), property taxes (EG you can net transfers out and property tax receipts)
cap: acquiring and disposing of capital assets (EG a sewer system), borrowing money from cap. acquisitions, repaying amounts borrowed (incl. interest) and capital grants, special assessment levied for capital acquisition
Operating activities: providing services, producing goods, all “leftover”, payment for services to other funds (esp. in lieu of taxes)
investing activities: making and collecting loans, acquiring and disposing of equity instruments including interest and dividend income.
Not for Profit requires which THREE statements?
1) Statement of Financial Position (A, L, Net Assets)
2) Statement of Activities (in place of an income statement - shows revenues, expenses which are DECREASES IN UNRESTRICTED NET ASSETS / categorized as either program expenses, and supporting services.)
3) Statement of Cash Flows (Standard operating activities, investing activities, financing activities – similar to regular)
poss. 4th -
Statement of functional expenses, only required of voluntary health and welfare organizations, shows expenses for each major program and support service.
Endowments
Regular: External party comes in, donates money with stipulation that endowment stay Permanently Restricted forever
(if they want earnings only for specific purpose, they are Temporarily restricted, if not they are unrestircted)
Term Endowment
Invested for a specific period of time, and then it can be spent.
Temp restricted net asset
