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Municipal Utility Fund Accounting > Utility Fund Accounting Overview > Flashcards

Utility Fund Accounting Overview Flashcards

1
Q

A shortcoming in Utility Fund must be raised in the _______ _______.

A

Current budget

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2
Q

A surplus in the Utility Fund SHALL be included in ______ ______

A

Current budget

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3
Q

Deemed to be self liquidating if cash receipts from fees, rents, and other charges are sufficient to meet what?

A

Operating and maintenance expenses &

Interest and debt redemption charges

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4
Q

Utility with BPU oversight has a ____% surplus limit

A

5%

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5
Q

Self liquidating debt calculation done annually on _______ _______ ________.

A

Annual Debt Statement

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6
Q

When is Annual Debt Statement due?

A

January 31

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7
Q

Calculation of new debt is done on _____ _____ _____.

A

Supplemental Debt Statement

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8
Q

Unlike Current Fund, Utilities accrue _______.

A

Interest

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9
Q

Interest Accrual as of 12/31 is shown on ________.

A

Utility Operating Balance Sheet

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10
Q

Shortfall in Interest Accrual must be appropriated in _____ _____.

A

Operating budget

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11
Q

Information needed to calculate the interest accrual is found in the _____ _____.

A

Capital Fund

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12
Q

A shortcoming in Utility must be raised in ____ ____.

A

Current Fund

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13
Q

Utility Budgets are NOT subject to the provisions of what?

A

The budget CAP laws

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14
Q

What are the three different Utility funds?

A

Utility Operating Fund

Utility Capital Fund

Utility Assessment Fund

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15
Q

Name components of the Utility Operating Fund

A

General Revenues
Operating Expenses
Capital Improvement Fund
Debt Service Appropriations

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16
Q

Name components of the Utility Capital Fund

A 
Debt Authorized
Bonds
Notes
Capital Appropriations
Capital Assets
17
Q

Name components of the Utility Assessment Fund

A

Assessments Receivable

Assessment Debt

18
Q

Name types of Utilities

A 
Water
Sewer
Electric
Solid Waste
Parking
Pool
Recreation
19
Q

A Utility is created by _____.

A

The adoption of an Ordinance by the Governing Body

20
Q

Once a Utility is created, a _______ is set up to record the financial activity.

A

Chart of Accounts

21
Q

An ______ may be required if commitments are to be made before the Utility Budget can be adopted.

A

Emergency Appropriation

22
Q

If cash receipts from fees, rents and other charges are sufficient to meet operating and maintenance expenses and interest and debt redemption charges, a Utility is deemed to be ______.

A

Self-liquidating

23
Q

A Utility Debt is a Deduction from _____.

A

Net Debt

24
Q

If Utility will remain self liquidating with new debt, no _____ is required for Debt Authorizations.

A

Down Payment

25
Q

A Utility can be Self Liquidating during Construction with approval of _______.

A

Local Finance Board

26
Q

List Operating Liabilities:

A 
Appropriations
Appropriation Reserves (Prior Year Budget)
Reserve for Encumbrances
Accounts Payable
Interfund Payable
Accrued Interest on Bonds & Notes
Utility Overpayments
Pre-Paid Rents
Reserve for Consumer Accounts Rec
Reserve for Liens; Other A/R
Fund Balance
27
Q

Give 5 reasons a town would want to set up a Utility

A
  1. No Down Payment on Debt
  2. No Levy CAP
  3. No Appropriation CAP
  4. User Base is Limited
  5. Use Base includes exempt properties
  6. Match Program Costs to Users
28
Q

What is the difference between a Utility and an Authority?

A
  • Utility is owned by Local Government, Authority is owned by an autonomous agency
  • Local Government Body oversees Utility, Appointed Board of Directors oversees Authority
  • Utility is created by Ordinance, Authority is created by Ordinance w/ prior approval of Local Finance Board
  • Utility is funded as part of Municipal Budget, Authority has an independent budget
29
Q

Factors to consider when creating Utility Rate Structure:

A

Actual Revenue vs Actual Expenses for 2-3 years prior

Review CY Revenue & Expenses vs Budget

Project expenses going forward

Divide Annual Projected expenses by the number of Utility Units

Determine assumptions for various types of expenses

30
Q

Is a Utility required by statute to be self-liquidating?

A

No

Municipal Utility Fund Accounting (2 decks)

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