Proprietary Funds Flashcards
What is the major criteria for knowing when to report item under enterprise fund?
Cost recovered through fees
What are the proprietary funds?
“SE”
Internal Service
Enterprise
What is the purpose of the internal service fund?
Examples?
provide goods/services to other funds
Central motor pools
self insurance
What is the JE for internal service operating revenue?
DB: Cash
CR: Billings to other departments
What is the JE to start the internal service fund through:
contributions from other funds?
Sale of bonds?
Long term advances from other funds?
DB: Cash
CR: Interfund transfer
DB: Cash
CR: LT B/P
DB: Cash
CR: Due to other fund
What items make up the net position?
“RUN”
Restricted
Unrestricted
Net Investment
What is the purpose of an enterprise fund?
Examples?
Goods/services to general public for fees
public utilities
public hospitals
public lotteries
public universities
What are operating and non-operating revenues within the enterprise fund?
Operating: charges for services
Non-Operating: shared revenues
What are the operating and non-operating expenses within the enterprise fund?
Operating: utilities, depreciation, payments in lieu of property taxes
Non-operating: interest expense
What is the JE to start the enterprise fund through:
contributions from other funds?
Long term debt or capital lease?
DB: Capital assets
CR: Capital contributions
DB: Cash
CR: LT B/P
Which fund is municipal land fill recorded in?
What are cost components that must be reported?
How do you record the purchase of equipment anticipated by a liability accrual?
Enterprise fund
equipment installed
monitoring
capping
reduce liability and DO NOT increase asset
What are the financial statements required for the proprietary funds?
Statements of net position
Statement of revenues, expenses, and changes in fund position
Statement of cash flows
What sections make up the statement of net position?
All assets
All liabilities
net position
What sections make up the statement of revenues, expenses, and changes in fund net position?
operating revenues
operating expenses
non-operating revenues
non-operating expenses
What sections make up the statement of cash flows?
operating
investing
capital financing
non-capital financing
