Governmental Funds Flashcards
Where would receipts from a special levy to retire and pay interest on general obligation bonds be recorded?
In the Debt service fund.
How should capital assets donated to a governmental unit be recorded?
At estimated fair value when received
Where should special assessment debt that matures in 12 years that is to be repaid from general resources of the government be reported?
In the Government-wide statement of net position
The general fund does not report LTD
Where are interfund transfers shown in the Statement of Revenues, Expenditures, and changes in the Fund Balance:
In the other financing source category
Remember that in GRaSPP, there is NO depreciation expense or amortization expense.
How is property treated that is obtained from forfieture and is to be used for general governmental purposes?
What value would it be capitilzed at?
It would go in the government-wide statement of net position. THE GENERAL FUND DOES NOT CARRY FIXED ASSETS.
It is capitlized at the lower of cost or market value
Things in the speical revenue fund
Intergovernmental revenues (taxes)
Fees
Grant funds (rehab centers)
Property forteited to government
Remember this is legally restricted and commited for a specific purpose other than debt service or capital projects
Debt service fund
The debt serivce fund accounts for the accumulation of resources for, and the payment of, general long-term liablity principal and inerest.
i.e. proceeds from to service the LTD for a capitla project would go in the debt service fund
Revenues include allocated portions of property taxes and tranfers from other funds.
Permanent funds
Permenant funds are used to account for principal that is restricted and may not be expended.
Income from this may be used for purposes that benefit the public (i.e, a park, a zoo, etc)
When is interest on debt to be recorded in the statement of revenues, expenditures, and changes in fund balance?
Interest expenditures should be recorded when legally payable per the bond agreement.
Interest is not to be recorded before periods. (i.e., an agreement is made where interest isn’t due until the next year).
Capital projects fund
Capital funds project funds are established for the construction or purchase of significant fixed assets.
Revenues include investment earnings, tax revenues, and capital grants (receivables may be recorded immediately in revenues)
When interest is paid on a debt in the general fund, what is the J/E?
Interest Expenditures xxx
Cash xxx
This would decrease the fund balance account as an interest expentiture has a direct correlation with the fund balance. (think interest expense and retained earnings).
Under governemtnal accounting, interest payable is only recorded when interest is not paid or past the due date.
When are principal and interest payments on LTD recorded under the modified accrual basis?
When they become due and payable, not when they accrue.
Special revenue fund
Accoint for revenues and expenditures that are legally restricted or committed for specific pruposes other than debt service or capital projects.
Sales tax fund, gasoline tax fund, special fees, grant funds (parks, rehab centers).
Revenues come from special taxes, fees,
General fund
Bascially, just the operating fund. The fund for the general activities of a government. The administrative and general services of the government.
Revenues are taxes, fees and fines, Intergovernmental, charges for services.
