Section 1 - Government Environment Flashcards
What is GASB?
The Governmental Accounting Standard Board (GASB) is the independent organization that established and improves standards of accounting and financial reporting for U.S. State and local governments. Recognized by governments, the accounting industry, and the capital markets as the official source of generally accepted accounting principles (GAAP) for state and local governments.
What entity defines GAAP for national government?
FASAB
Report that combines financial data & performance measures
Performance and Accountability Report (PAR)
Reports that link financial resources to the service outputs & outcomes achieved with those resources
Performance Report
What entity establishes standards for financial audits, generally?
AICPA
3 differences between internal & external reports
Timing, purpose, and structure
What are the four (4) fiscal and monetary powers of governments, there are 4
Tax citizens and corporate entities
Establish budgets and spend public funds
Borrow funds for government operations and capital investments
Create money (only at national level)
What act calls for the establishment of government wide financial data? standards
Data Transparency & Accountability Act (DATA)
What act calls for the establishment of government wide financial data standards
Referendum
What are the two types of Special Purpose Local Governments?
School District
Special District
Citizen action that enables voters elected officials from office?
Recall
Type of government entity that performs one or two functions
Special purpose
Type of government entity that performs multiple functions
General Purpose
Describe the distinction between policy and administration.
What is the difference between local charters and local ordinances.
Charter = Constitution
Ordinance = Law
What are the three types general purpose local governments?
County
Municipality
Township
Who issues the Yellow Book?
GAO
Another term for General Accepted government Auditing Standards (GAGAS)
The Yellow Book
Three (3) types of external audits
Financial
Attestation Engagement
Performance Audits
Type of external audit that provides reasonable assurance on whether financial statements are presented fairly in conformity with GAAP
Financial audit
Type of government entity that blends characteristics of government and non-for-profit organizations
Quasi-Governmental (Government Corporation)
What is an attestation engagement?
Examine, review or perform and agreed upon procedures on a limited subject matter and report on the results; can be financial or non-financial.
Principle that taxes should treat tax payers fairly
Tax Equity
Collection efficiency in tax collection
Cost of collecting the tax should be minimal compared to the revenue generated.
Different tax payers with the same income level should pay the same amount of tax.
Horizontal Equity
Tax payers with different income level, should pay different amount of tax.
Vertical Equity
U.S. Income Tax is progressive or regressive?
Progressive
Sales tax is progressive or regressive?
Regressive: single sales tax rate applies to everyone.
How government accomplish social goals with tax?
Exemptions
Deductions
Credits
Deferrals
The ADA Code Four (4) Principles
- Public Interest
- Professionalism and Integrity.
- Objectivity
- Confidentiality
Principle 1 of AGA Code of Ethics?
AGA members and CGFMs shall Serve and Support the Public Interest.
The public consists of citizens, taxpayers, customers, employers, employees, investors, the business and financial sector, and others who rely on the objectivity and integrity of government accountability professionals.
Principle 2 of AGA Code of Ethics?
AGA members and CGFMs shall Maintain the Highest Standards of Professionalism and Integrity.
Government accountability professionals shall work at the highest standards of professionalism, attain the highest levels of performance, and meet the public interest principle. Accordingly, AGA members must adhere to these rules.
Principle 3 of AGA Code of Ethics?
AGA members and CGFMs shall remain Objective in carrying out their duties.
Objectivity requires being fair and not allowing prejudice, bias, conflict of interest, or influence of others to affect decision-making. Accordingly, AGA members must adhere to these rules.
Principle 4 of AGA Code of Ethics?
AGA members and CGFMs shall carefully maintain and protect confidential information.
