Governmental Accounting Flashcards
Governmental, Proprietary, Fiduciary
Governmental Accounting
Accrual basis - current economic resources focus (revenues recognized when earned)
Modified accrual basis - current financial resources focus (revenues recognized when available and measurable)
Governmental Accounting
The highest amount allowed for a particular expenditure under a budget.
Governmental Accounting
Records purchase and reserves it for the encumbrance.
Governmental Accounting
Dr Estimated Revenues Control
Cr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)
Governmental Accounting
Dr Appropriations Control
Dr/Cr Budgetary Fund Balance (plug)
Cr Estimated Revenues Control
Governmental Accounting
General Fund Special Revenue Fund Permanent Fund Capital Projects Fund Debt Service Fund
Governmental Accounting
The operating fund of the governmental unit
Records Significant Revenues: Taxes; Tickets; Fines; Licenses
Records Significant Expenditures: Police; Education; Fire Dept
Governmental Accounting
Restricted for a specific purpose such as street repair.
Governmental Accounting
Legally restricted fund; where only earnings can be used to fund programs.
Principal remains intact.
Governmental Accounting
Used to acquire and build facilities.
Governmental Accounting
Handles repayment of long-term debt and related interest.
Governmental Accounting
Balance Sheet
Statement of Revenues; Expenditures; and Changes in Fund Balance
Governmental Accounting
When it is BOTH available and measurable; regardless of when it is spent.
Governmental Accounting
Money collected from people doing things:
Sales tax (buying cars) or income tax (people working)
Governmental Accounting
Tax assessed just because things exist
Example: property tax on a car (even if it’s never driven); real estate tax
Recorded as a revenue when BUDGETED.
Estimated uncollectible property tax revenues don’t offset revenues; so don’t net them.
Governmental Accounting
Internal Service Funds - to serve the needs of other governmental units (i.e. motor pool)
Enterprise Funds - provide goods or services to external users (i.e. post office)
Governmental Accounting
Restricted - Restricted by Contributor Committed - Restricted by Government Assigned - Intended for a purpose Unassigned - Available to be spent Non-spendable - Not in a spendable state
Governmental Accounting
Agency Fund - government acts as an agent or custodian
Pension Trust Fund - Government is a trustee for a pension plan
Investment Trust Fund - Government is a trustee over a series of investments
Private Purpose Trust - Trust that benefits various individuals and entities
Governmental Accounting
Assets (Current & Non-Current)
Deferred Outflows of Resources
Liabilities (Current & Non-Current)
Deferred Inflows of Resources
Governmental Accounting
They are shown net of debt
Asset Cost - Accumulated Depreciation - Asset Liabilities : Net Assets
Governmental Accounting
Modified approach:
Reported at cost; no accumulated depreciation
Governmental Accounting
Into Governmental Activities and Business Activities
Governmental Accounting
They are divided by function
If the activities of a component are distinguishable from the rest of the governmental entity; then discreet presentation is required
If the activities of the component cannot be identified and separated from the rest of the governmental activities; then blended presentation is warranted.
Component units are reported in the Entity-Wide Financial Statements and not the Fund Financial Statements.
Governmental Accounting
To provide information that is useful and benefits a wide range of users including:
Costs of services provided
Sufficiency of revenues to cover costs
Financial position of entity
Governmental Accounting
Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position
Governmental Accounting
Assets; Deferred Outfows; Liabilities; Deferred Outflows; Fiduciary Net Position
Governmental Accounting
Additions (Contributions and Net Investment Income) - Deductions (Benefits Payments and Admin Expense) : Net Change in Fiduciary Net Position
Governmental Accounting
Types of Benefits; Plan Member Classes; Board Information; Investment Policies and FV Determination
Governmental Accounting
