Proprietary & Fiduciary Funds Flashcards
What type of accounting do Proprietary Funds use and why?
Proprietary funds make business type transactions and therefore use Business Like accounting ie.
1) Use Accrual accounting
2) Economic Resource Measurement Focus
What are some key accounting hallmarks of proprietary fund types?
Account for long-term debt and long term assets
Depreciation expense is recorded
“Expenses” rather than “Expenditures”
What is the balance sheet equation for Proprietary Fund types?
Current Assets + Fixed Assets + Other Assets + DEFERRED OUTFLOWS = (Current Liabilities + Long term Liabilities + DEFERRED INFLOWS) + Net Position
What is the revenue account used for Internal Service Funds?
“Billings to Departments”
Revenue account on a cost reimbursement basis
When is an Enterprise Fund required?
1) Activity is Financed by debt secured SOLELY by a pledge of the net revenues from fees & charges of the activity (eg. revenue bonds)
2) Laws & regulations require that the costs of providing the services be covered by such fees & charges
3) Pricing policies of the activity establish fees & charges designed to cover its costs & to maintain capital of the activity
What are the differences between the Statement of Cash flows for a Proprietary Fund (GASB) vs. FASB?
1) There are 4 sections (as opposed to 3)
- Operating
- Non Capital Financing
- Debt issue to Finance operations
- include interest related to that debt
- any transfers not related to capital
- Capital & Related Financing
- issuance & repayment of debt issued to acquire capital assets
- includes interest related to that debt
- acquisition and sale of capital assets (under GAAP it would be under investing)
- Investing
- acquisition and sale of investments in debt & equity investments
- loans made and collected except for those related to operations
2) Direct method required
3) Noncash transactions reported on the face of the statement (as opposed to being allowed in the notes)
What are the financial statements required for Pension Trust Reporting?
Statement of Fiduciary Net Position
Statement of Changes in Fiduciary Net Position
- “Additions” & “Deductions” (rather than revenues & expenses)
Required Supplementary Information
- Schedule of Funding Progress
- Schedule of Employer Contributions
- Actuarial Information
What is an agency fund? And what is the accounting equation related to it?
Accounts for assets held briefly and then distributed to other funds, individuals, governments, or organizations
eg.: tax collection, special assessments, pass-through grants
Assets = Liabilities
ie No Equity
Not included in government wide financial statements
What is a special assessment agency fund?
Property owners agree to finance capital improvements that benefit their properties (eg. they may want streetlights, sidewalks so the agree to pay taxes to finance the project)
*government is not obligated on the special assessment debt, pay down bonds through the collection of funds through property owners
