Sec 2, Ch 2 Flashcards
What are the three types of funds?
- Governmental
- Proprietary
- Fiduciary
What are the 5 types of governmental funds?
- General fund
- Debt Service fund
- Special Purpose fund
- Capital Project fund
- Permanent fund
Establishing funds provides for efficient administration and reporting under what Act?
Single Audit Act
What is a serial bond?
A bond which requires the payment of both principal and interest.
What are the 2 types of proprietary funds?
- Enterprise funds
2. Internal Service funds
Enterprise funds are used for what type of activities?
Public utilities such as sewer, solid waste collection, water treatment, recreation centers, public hospitals, etc.
How are the activities of enterprise funds reported?
Business-like activities
What are the types of fiduciary funds? (4):
- Pension trust funds
- Investment trust funds
- Private-purpose trust funds
- Agency funds
What are the 5 classifications for Governmental fund balance reporting?
- Non-spendable Fund Balance
- Restricted Fund Balance
- Committed Fund Balance
- Assigned Fund Balance
- Unassigned Fund Balance
What type of accounting and measurement focus does Governmental funds use?
Current financial resources; modified accrual
Proprietary funds require what charge?
User fees
What is the purpose of a fiduciary fund?
To hold assets when the government is a trustee or agent for others
What type of accounting and measurement focus does Proprietary and Fiduciary funds use?
Economic resources; accrual
What is the most important fund for a state/local government?
General fund
What are Special Revenue funds used for?
For resources that are legally restricted or committed for special purposes
What are Capital Project Funds used for?
The acquisition and construction of major gov’t facilities
What are Debt Service Funds used for?
Resources used to pay debt instruments on long-term obligations
What are Permanent Funds used for?
Resources that require only the earnings on investments be used to benefit the gov’t
What are Enterprise Funds used for?
Business-type activities in which the primary customers are outside of the gov’t
What are Internal-Service funds used for?
To provide services to other departments of the government, intended to cover the cost of providing services
True or False: Fiduciary funds are reported only at the fund level
True
What are Agency fund used for?
To hold resources on a temporary basis, due to others and have no residual balance
What are the required financial statements for Governmental funds?
- Balance sheet
- Statement of revenues/expenditures
- Changes in fund balances
True or False: A reconciliation is not required for governmental funds and governmental activities at the gov’t-wide level?
False
What are the required financial statements for Proprietary funds?
- Statement of net Position (balance sheet)
- Statement of Revenues/Expenses and Changes in Fund Net Position (Operating Statement)
- Statement of Cash Flows
What basis is the statement of cash flows prepared?
Direct basis
What are the required statements for Fiduciary funds?
- Statement of Fiduciary Net Position
2. Statement of Changes in Fiduciary Net Position
What is required for the genernal fund and each major special revenue fund with a legally adopted annual budget?
Budgetary comparison schedule
What is required for gov’ts that budget on a basis other than GAAP
A reconciliation between the budgetary comparison schedule and the operating statement
