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FAR > Governmental Accounting & Reporting > Flashcards

Governmental Accounting & Reporting Flashcards

1
Q

5 Characteristics that determine Governmental Accounting & Reporting

A
  1. No profit motive
  2. Lack of clear ownership
  3. Non-exchange services (people who contribute resources do not necessarily receive proportionate services, i.e., school districts)
  4. Compliance with laws and regulations
  5. Formal budget process
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2
Q

3 Types of Governmental Entities

A
  1. State and Local Governments (SLG)
  2. Special Purpose Governments
  3. Agencies and Commissions
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3
Q

Are GASB Concept Statements Authoritative Guidance?

A

No. They do not represent Governmental authority and are not GAAP,

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4
Q

5 GASB Concept Statements

A
  1. Objectives of Financial Reporting
  2. Service Efforts and Accomplishments
  3. Financial Reporting
  4. Elements of Financial Reports
  5. Service Efforts and Accomplishments (amendment to concept statement no. 2)
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5
Q

2 Purposes of GASB Financial Reporting

A
  1. Accountability

2. Inter-period Equity - are there enough resources to cover current year services?

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6
Q

6 Characteristics of GASB Financial Reporting

“TRUCCR”

A
  1. T - Timeliness
  2. R - Relevance
  3. U - Understandability
  4. C - Comparability
  5. C - Consistency
  6. R - Reliability
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7
Q

5 Elements of GASB Financial Statements

A
  1. Assets
  2. Liabilities
  3. Deferred Outflow of Resources
  4. Deferred Inflow of Resources
  5. Net Position
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8
Q

4 Financial Reporting Implications for a legally adopted annual budget

A
  1. Expression of public policy
  2. Expression of financial intent
  3. Form of control
  4. Provide a basis for evaluating performance
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9
Q

3 Governmental Fund Types

A
  1. Governmental Funds
  2. Proprietary Funds
  3. Fiduciary Funds
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10
Q

11 Governmental Fund Types

A

DRIP

  1. Debt service fund
  2. Special revenue fund
  3. Internal service fund
  4. Permanent fund

CEG

  1. Capital project fund
  2. Enterprise fund
  3. General fund

PIPPA

  1. Pension fund
  2. Investment fund
  3. Private purpose trust fund
  4. Agency fund
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11
Q

2 Levels of Reporting for Government Entities: (each has 3 parts)

A
  1. General Purpose Financial Statements (GPFS) - this represents the minimum requirements for external reporting.
    - Management Discussion & Analysis (MD&A)
    - Basic Financial Statements
    - Required Supplementary Information (RSI)
  2. Comprehensive Annual Financial Report - more extensive reporting that is equivalent to for-profit annual report.
    - Introductory Section
    - Financial Section
    - Statistical Section
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12
Q

5 Parts of the Financial Section of the CAFR

A
  1. Auditor’s Report
  2. Management’s Discussion & Analysis (MD&A)
  3. Basic Financial Statements
    - Government-wide statements
    a. Government-wide Statement of Financial Position
    b. Government-wide Statement of Activities
    • Includes data from Gov’t + Propriety, but NOT Fiduciary Funds
      - Fund Statements
      a. Government Fund Category
      i. Balance Sheet
      ii. Statement of Revenues, Expenditures, and change in fund balance
      b. Proprietary Fund Category
      i. Statement of Net Position
      ii. Statement of Revenues, Expenses, and change in net position
      iii. Statement of Cash Flows
      c. Fiduciary Fund Category
      i. Statement of Fiduciary Net Position
      ii. Statement of Changes in Fiduciary Net Position
      - Notes to the Financial Statements
  4. Other Required Supplementary Information (RSI)
    - Budgetary Comparison Statement
    - Pension Plan Disclosures
    - Info Related to Infrastructure Assets Accounted for using Modified Approach
  5. Combining FS and Individual Fund FS
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13
Q

A primary government meets what 3 criteria and can take what 3 actions without

A

3 Criteria

  1. Separately elected body
  2. Is legally separate
  3. Is fiscally independent from state and local gov’ts

3 Actions

  1. Determine its budget
  2. Levy taxes or set user fees
  3. Issue bonded debt
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14
Q

2 Measurement Focus Basis of Accounting

  • What is the Accounting Objective of Each?
  • What is the Accounting Basis of Each?
A
  1. Flow of Financial Resources
    - Objective: Sources and uses of current financial resources
    - Basis: Modified Accrual
  2. Flow of Economic Resources
    - Objective: Net Income
    - Basis: Accrual
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15
Q

5 Fund Types that use Modified Accrual Accounting Basis

A

Governmental Funds (DRiP CeG)

  • Debt Service Fund
  • Special Revenue Funds
  • Permanent Funds
  • Capital Project Funds
  • General Fund
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16
Q

6 Fund Types that use Accrual Accounting Basis

A

Proprietary & Fiduciary (drIp cEg PIPPA)

  • Internal Service Funds
  • Enterprise Funds
  • Pension Trust Funds
  • Investment Trust Funds
  • Private-Purpose Trust Funds
  • Agency Funds
17
Q

2 Criteria for Recognizing Revenue

A
  1. Measurable
    - can be reasonably estimated
  2. Available
    - Legal right to collect
    - Collected in current period or soon thereafter (within 60 days of next period)
    - Classify as deferred inflow of resources if collected before legally available
18
Q

5 Revenue Types

  • Measurable?
  • Available?
  • Recognition Approach?
A
  1. Property Taxes - Measurable/Available/Accrual
  2. Licenses & Permits - Not Measurable/Not Available/Cash
  3. Intergovernmental Grants - Measurable/Not Available/When grant provisions are met
  4. Charges for Services - Measurable/Available/Accrual
  5. Fines & Forfeits - Not Measurable/Not Available/Cash
19
Q

5 Budgetary Accounts (GASB)

A
  1. Estimated Revenues (Dr)
  2. Appropriations (Cr)
  3. Estimated other financing sources (Dr)
  4. Estimated other financing uses (Cr)
  5. Budgetary Fund Balance (Dr/Cr - offset account to balance budget entry)
20
Q

3 Categories of Net Position (GASB)

A
  1. Net investment in capital assets
  2. Restricted
  3. Unrestricted
21
Q

Formula for Statement of Net Position (GASB)

A 
\+ Assets
\+ Deferred Outflows of Resources
- Liabilities
- Deferred Inflows of Resources
= Net Position
22
Q

5 Fund Balance Classifications (GASB)

A
  1. Nonspendable
  2. Restricted Fund Balance
  3. Committed Fund Balance
  4. Assigned Fund Balance
  5. Unassigned Fund Balance
23
Q

3 Government Fund Types

A
  1. Special Revenue Funds
  2. Capital Project Funds
  3. Debt Service Funds
24
Q

4 Interfund Transaction Types (Government Accounting)

A
  1. Quasi External Transactions
  2. Reimbursements
  3. Transfers
  4. Loans
25
Q

5 Governmental Fund Types

Accounting Basis for Governmental Funds

A

DRiP CeG

  1. Debt Service Fund
  2. Special Revenue Fund
  3. Permanent Fund
  4. Capital Project Fund
  5. General Fund

Modified Accrual Accounting Basis

26
Q

4 Categories in Proprietary Fund Statement of Cash Flows

A
  1. Operations
  2. Non-capital Financing
  3. Capital Financing
  4. Investing
27
Q

6 Common Fund Classification Schemes in Governmental Reporting

A
  1. by Fund (ex. General Fund)
  2. by Program or Function (ex. Public Safety)
  3. by Activity under the program (ex. Police Training)
  4. by Organization Unit (ex. Police Department)
  5. by Character (ex. Current)
  6. by Object (ex. Personal Services)
28
Q

4 Characteristics of an Expenditure

A
  1. Current - primary benefit during current period
  2. Capital outlay - benefit current and future periods
  3. Debt service - payment on debt to acquire capital outlay that benefit past, current, and future periods
  4. Intergovernmental - transfer of governmental resources from one fund/department to another
29
Q

What are the 5 Liability Recognition Triggers for Accounting and Reporting for Pollution Remediation Obligations?

A
  1. Pollution poses an imminent danger
  2. Violation of pollution prevention permit
  3. Identified as responsible for cleanup
  4. Outcome of lawsuit will impose responsibility
  5. Government begins to cleanup
30
Q

5 Categories that Statistical Information is to be reported in the CAFR
[FRODD]

A
  1. Financial Trend Information
  2. Revenue Capacity Information
  3. Debt Capacity Information
  4. Demographic and Economic Information
  5. Operating Information
31
Q

3 Stages of Software Development and how accounted for during the period

A
  1. Preliminary Project Stage - expensed as incurred
  2. Application Development Stage - capitalized in government-wide financial statements
  3. Post-implementation/Operation stage - expensed as incurred
32
Q
  1. How are changes in the fair value of Derivative Instruments used for investment purposes to be reported?
  2. How are changes in the fair value of Hedging Derivative Instruments reported?
  3. How are changes in the fair value of Hedging Derivative Instruments reported?
A
  1. Within the Investment Income classification of the Statement of Activities
  2. As Deferred Outflow or Deferred Inflow of Resources in the Statement of Net Position
  3. As Deferred Credit in the Statement of Net Position

FAR (7 decks)

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