Proprietary/Fiduciary Funds (F10 M1-M2) Flashcards
1
Q
Proprietary funds financial statements
A
- Balance sheet: statement of net position
- income statement: statement of rev, exp, and changes in net position
- Statement of cash flows (direct method required)
2
Q
Internal Service
A
-finance and account for services and supplies provided to other departments (typically cost reimbursement)
- Restricted grant revenues: recognized in year money is spent
- operating revenues: recognized when earned
- nonoperating revenues: interest earnings
3
Q
Enterprise fund
A
- financed and operated in a manner similar to business.
- activity is financed with debt that is secured solely by a pledge of net revenue (football stadium paid through tickets)
- laws require cost be recovered through fees (EZ tag tolls)
- ex: public utilities, public transportation, airports, lotteries, public universities
-bad debt expense is not recognized
4
Q
Proprietary fund income statement order
A
- Income (operating)
- Nonoperating income/expense
- Capital contributions
- Additions to endowments
- special items
- extraordinary items
- transfers (interfund)
5
Q
Municipal landfills
A
cost of components:
- cost of postclosure equipment expected to be installed
- cost of gas monitoring/collection system
- cost of final cover (capping)
6
Q
Statement of Cash flows
A
DIRECT METHOD
- operating activities
2a. noncapital financing activities
2b. capital financing activities - investing activities
- reconciliation of OPERATING INCOME (not net income) - indirect method
7
Q
Fiduciary fund financial statements
A
- Balance sheet: statement of plan net position
- Income statement: statement of changes in plan net positions
- NO CASH FLOWS
8
Q
Net position balances
A
- net investment in capital assets-capital assets reduced by accumulated dep and outstanding debt
- Restricted: restricted assets/deferred outflows - liabilities/deferred inflows
- unrestricted: everything else
9
Q
Fiduciary funds
A
- Pension
- Agency
- Private purpose
- investment
