Governmental Accounting (Part B) Flashcards
What are the two important types of accountability?
What is the focus of the two types of accountability?
1) Operational Accountability
- government-wide financial statements
2) Fiscal Accountability
- fund financial statement
What is the definition of the integrated approach?
- requires a reconciliation with fund financial statements to government-wide financials to link the accountability.
What is required for reporting for general purpose governmental units?
Required
1) Management’s Discussion and Analysis - before F/S (narrative)
2) Government -wide financial statements
- Statement of net position
- Statement of activities
3) Fund Financial Statements - major funds shown individually
a) Governmental Funds
- Balance Sheet
- Statement of revenues, expenditures, and changes in fund balances
b) Proprietary Funds
- Statement of net position
- Statement of revenues, expenses, and changes in fund net positions
- Statement of Cash Flows
c) Fiduciary Funds
- Statement of Fiduciary Net Position
- Statement of changes in fiduciary net position
4) Notes to financial statements
5) Required supplementary information (RSI) - After F/S
6) Other supplementary information (optional)
What are included in basic financial statements?
1) Government -wide financial statements
- Statement of net position
- Statement of activities
2) Fund Financial Statements - major funds shown individually
a) Governmental Funds
- Balance Sheet
- Statement of revenues, expenditures, and changes in fund balances
b) Proprietary Funds
- Statement of net position
- Statement of revenues, expenses, and changes in fund net positions
- Statement of Cash Flows
c) Fiduciary Funds
- Statement of Fiduciary Net Position
- Statement of changes in fiduciary net position
3) Notes to financial statements
What is optional for reporting for general purpose governmental units?
Comprehensive Annual Financial Report = CAFR
1) Introductory Section (unaudited)
2) Basic Financial Statements and Required Supplementary Information (audited)
3) Statistical section (unaudited) not part of basic F/S
What are the characteristics that need to be met for special purpose local governments (e.g. hospital, school district) to be considered primary government entities?
1) has a separately-elected governing body
2) Is legally separate
3) Is fiscally independent of other state and local governments.
What is the type of unit that a primary government is financially accountable for: E.G. Board of Education
Component Unit
What are two ways of presentation of showing component unit?
Blended presentation and Discrete Presentation
How do you define blended presentation?
Only one of the following circumstances is required for blended presentation approach of component unit:
1) A board f the component unit is the same as that of the primary government (6 out of 7 people are on the component unit and primary government)
or
2) The component unit serves the primary government exclusively
or
3) The component unit is NOT a separate legal entity
How do you define discrete presentation?
Discrete presentation is used when the criteria for blended presentation are not met.
