Proprietary funds Flashcards
Internal service fund
Funds established to finance and account for services and supplies provided exclusively to other departments within a government unit or to other government units.
Examples: Central janitorial departments, central garages and motor pools, central printing and duplicating services, central purchasing and sotrage departments, central repair shops, central computer proscessing department, self insurance.
Where is it reported in the government-wide statement of net position?
How is it reported?
In the governmental activities section.
Full accrual
For municipal landfills, how do equipment purchases effect the balance sheet?
No effect on assets
Decrease in liablities
Municpal landfill
What cost components are included?
- Cost of equipment to be installed
- Cost of gas monitoring
- Cost of final cover (capping)
This should be adjusted annually
Statement of cash flows.
2A- Cash flows from noncapital financing activities
2B- Cash flows from capital and related financing activities
_Cash flows from noncapital financing acitivies _
Operating subsideries and transfers to other funds
Cash flows from capital and related fin. activities
Proceeds from capital debt
Capital contributions
Purchases of capital assets
Principal paid on capital debt
Interest paid on capital debt
Enterprise funds
Funds used to account for operations that are financed and operate in a manner similar to private business enterprise.
Examples: public ultities, public hospitals, public universities, other commercial activities.
How should shared revenues received in an enterprise fund be recorded?
As non-operating revenues.
What is the J/E that should be recorded when the internal service fund bills another fund for services provided?
Due from other funds xxx
Operating revenues control xxx
Statement of net position
RUN
Restricted for debt services
Unrestricted
Net investment in capital assets
Change in net position. What statement is this considered to be?
I/S
Revenues, Expenses, Nonoperating revenues (expenses)
Enterprise fund (further uses)
This fund is also used for governmental facilities and services intended to be primarily (>50%) self-supported by user charges (fees).
What statments are required for special-purpose governmens engaged ONLY in business-type activities (utlities)
Financial statements required for enterprise funds
Management’s Discussion and Analysis (MD&A)
Required Supplementary Information (RSI)
If a local oridance is passed where charges to customers (fees) will cover the costs, what fund will this go to?
Enterprise fund
If funds in an enterprise fund are designated for xxx, what is it reported as?
An unrestricted compontent of net position.
