Modified Accrual Accounting Flashcards
BAE
Budget
Activity
Encumbrance
Which funds is modified used by?
GRASPP
General, Special Rev, Debt Svc, Cap Projects, Permant
Gov resources are… 2
Estimated revenues
Other finances
JE, is there a liability set up for non-current debt?
No,
Expenditure – Debt Service
Cash
JE for buying a capital item
Expenditure--Cap Outlay
Voucher Payable (or cash)Purchase Method (exp recog)
Expenditure
Voucher Pay
year end:
Supplies Inventory
Non-Spendable balance–inventory
Consumption Method
Supplies Inventory
Voucher Payable
when used:
Expenditure
Supplies Inventory
Character of Expenditures (types) 4
Current Expenditures=Period expense
Capital Outlays=Fixed Assets
Debt Service=Payoff LTD
Intergovernmental=Transfers—theses are not expend.
Classification of Expend. (Hierarchy)
Function/Program………Public Safety
Organization Unit……….Pub: Police or Fire
Activity……..Pub:Police: Drug or Highway
Recording Fixed Asset–Capital Outlay—Expenditure
JE:
Expend–Cap Out
Voucher Payable
Recording Debt LT—Debt Service—Expend
JE:
Expenditure–Principal
Expenditure–Interest
Cash*
*remember we don’t recognize LT liabilities for debt
Why do we have encumbrances?
to prevent overspending of appropriations, monitor managers effective budgeting
JES
Budget/appropriated for 2 trucks
1.Setup of the encumbrance
Encumbrance
Budgetary Control
JES
Budget/appropriated for 2 trucks
- Reverse estimated encumbrance when 1st truck arrives and record actual expend
Budgetary Control………..budgeted amt
Encumbrance…………………budg amt
Expenditures
Vouchers Payable
Encumbrances are like…
setting up for an expenditure to later happen
record encumb. at budgeted amt
record expenditure at actual amt
