Governmental Accounting Overview Flashcards
Remember to think of funds like a checkbook
A checkbook would have many different accounts:
- Savings
- Operating (Checking)
- College fund (CD)
A fund is just a “checkbook” account
Fund classifications
When revenues and expenditures (expenses) are recongized.
Different accounting principles for each one though because well hey, its the government.
Fund structure
- Governmental funds
- Propreitary funds
- Fidicuary funds
Governmental Funds (no profit motive)
Current only (No Fixed assets {FA} or Long term debt {LTD})
Current economic resources
GRaSPP
General fund
Special Revenue Funds
And
Debt Service Funds
Capital Projects Funds
Permanent Fund
Proprietary Funds= Treat like customer/not citizen
Full accural basis
Economic resources measuement focus
Everything! (FA and LTD)
SE
S Internal Service Funds
Enterprise funds
Fiduciary funds (Trust Accounts)
Full accural accounting
Economic resources measurement focus
Everything!!! (FA and LTD)
PAPI
Pension Trust funds
Agency Trust funds
Private Purpose Trust Funds
Investment Trust Funds
Governental funds
are
MAC-GRaSPP
Modified
Accrual accounting
Current financial resourses measuement focus
GRaSPP
Properity and fiduciary funds have
SPACE
SE
PAPI
Accural accounting
Carry fixed asset and long-term debt
Economic resources measuement focus
Governmental fund constraints
are
NU CAR
GRaSPP if you want a NU CAR
Non-spendable
Unassinged
Committed
Assigned
Restricted
Fund accounting, what leads to it?
Legal restrictions ( because of compliance with spending purposes)
Financial Control (spedning limits)
The purpose of GASB #34 (seperating fund financial statements and governmental and proprietary funds) is to?
Report additional and detailed information about the primary government.
Of course (ironic), relevance is the most difficult for a government to report.
What is the primary measurement focus for governmental fund types?
Current finanical resources
Governmental fund measurement focus is on the determination of:
Financial position
and
Current Finanical Resources
What would you compare accounting and reportin properitary funds to?
A business enterpirse
thus, income determination is the primary oreination
The general fund recongnizes revenue when:
When revenues in the accounitng period in which they occur become measurable and available (modified accurral accounting)
Compensated absenece liablity
At what period the salary rate used to calculate the lialbility ?
At the effect of the balance sheet date.
Government-wide statement of activities?
What are they similar to?
What do they take into account?
They are similar to comerical enterprises.
Government wide statements do not account the availability like just the governmental statement does, they just include it all and deduct of net.
The only fund that shows a positive amount in its unassigned fund balance classifiacation is what?
The General fund.
How are inventories for a special project classifeid?
As non-spendable.
If expenditures incurred for specific purposes exceed the amounts restricted, committed or assigned to those purposes, what account would be neccessary to report?
Negative fund balance- unassigned.
Restricted fund balances represent resources that:
use has been limited by such external sources as creditors (something such as debt covenants), contributers, other governments, laws, constiutional provisions, or enabling legilstation.
The most restrictive classification of governmental fund balances is
Committed
Permanent funds
Restrcited for what income comes in.
Not principal
Government wide statements
Measurement focus- Economic resources
Basis of accounting- accural
Vice versa for just government statements
