Section 4...Govt accounting Flashcards
Types of funds
Permanent - resources rec’d by govt with the stipulation that principal remains intact and the endowment earnings pay for goods and services.
Enterprise - Self-supporting activities such as water and sewer dept
Capital Projects - Monies designated for acquisition or CONSTRUCTION.
Special Revenue - Specific rev restricted for expenditures for specified purposes.
Internal Service - Provide services on a cost basis to other units of govt (motor pools, depreciation, and central data processing)
General - all financial resources except those that are required to be accounted for in another account.
Calculating annual interest and principal pmts
BOTH Int and Prin are recognized in ‘Debt Service Funds’. These are recorded when DUE AND PAID, NOT ACCRUED.
Types of accounts
Encumbrance accounts - budgetary account
Appropriations - budgetary account
When goods and services are received - liability account
End of year closing entry
DR: Appropriations
CR: Expenditures
Encumbrances
Budgetary Fund Balance
Types of accounts
Deferred Outflow of Resources - Similar to ‘Assets’ like Prepaid Expense
Deferred Inflow of Resources - Similar to ‘Liabilities’
Categories of Funds
Governmental Funds - Services the Govt provides (library)
Proprietary Funds - Charges for services (riding a public bus)
Fiduciary Funds - Money owed to another branch of govt. (local govt collects tax money which needs to be remitted to State Govt.)
Government Fund
Current Assets - Current Liabilities = Fund balance, use modified-accrual acct
General Fund
Special Revenue Fund
Capital Projects Fund
Debt Service Fund
Permanent Trust Fund
Proprietary Funds
Uses regular accrual accounting.
Enterprise Fund
Internal Service Fund
Fiduciary Funds
Uses regular accrual accounting
Pension Trust fund
Investment Trust fund
Private-Purpose Trust fund
Agency fund
