Governmental Fund Accounting Flashcards
What are the 3 generic categories of fund?
- Governmental funds = GRaSPP
- Proprietary funds = SE
- Fiduciary Funds = CIPPOE
What are governmental fund types?
GRaSPP
- General fund: ordinary operations
- Special Revenue fund (fully expendable): set up from specific taxes or other earmarked sources (by law) to finance particular activities
- Debt Service fund: set up to pay principal and interest of all general obligation fund
- Capital Project fund: set up for acquisition or construction of major capital assets by a government unit
- Permanent fund (limit to earnings): to report resources that are legally restricted to the extent that income (not principal) may be used to support reporting governmental programs for the benefit of the public
What are proprietary fund types?
SE
- Internal services funds: internal customers
- Enterprise funds: Funds are often used for utilities. external customers
- Note: income determination
What accounting method used in governmental funds?
- Modified accrual basis of accounting (governmental financial statements)
- Current financial resources measurement focus (NO FA and LTD)
- Note: record the “flow of current financial resources” and NO income determination
what accounting methods used in proprietary funds?
- Full accrual basis of accounting (government-wide financial statements)
- Economic resources measurement focus (carry everything on BS)
- Note: income determination
what accounting methods used in fiduciary funds?
- Full accrual basis of accounting
- Economic resources measurement focus (carry everything on BS)
what are fiduciary fund types?
CIPPOE
- Custodial funds: for temporary custody of government unit
- Investment trust funds: for external investment pools
- Private purpose trust funds
- Pension (and Other Employee benefit) trust funds
What is MAC-GRaSSP?
- Modified
- Accrual accounting
- Current financial resources measurement focus
- GRaSPP
What us SCARE?
- SE
- CIPPOE
- full Accrual accounting
- Record non-current assets and liabilities
- Economic resources measurement focus
what are the differences between Modified and Full accrual basis accounting?
Modified basis:
- Revenues are recognized when available and measurable
- Expenses: recorded when incurred, but incurred unpaid debt service expenses are not accrued
Full accrual basis:
- Revenue is recognized when earned
- Expenses are recognized when incurred