• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/52

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

52 Cards in this Set

  • Front
  • Back
C. Fund Structure
1. Governmental Funds
2. Proprietary Funds
3. Fiduciary Funds
D. External Reporting
Reporting Requirements include fund-based and government- wide presentations supported by notes to the financial statements and a variety of required supplementary information.
1. Government Wide Presentations
- Full Accrual Accounting (basis of Accounting)
- Economic resources measurement focus.
2. Major Fund Financial Statements
Major Funds are presented using the basis of accounting and measurement focus unique to each category or fund.
3. Dual Perspective reporting
a. Governmental Fund Reconciliation.
b. Disposition of other funds
a. Governmental Fund Reconciliation
Governmental Funds Financial Statements are reconciled to the governmental activities section of the government- wide presentation.
b. Disposition of Other Funds
(1) Enterprise Funds
(2) Internal Service Funds
(3) Fiduciary Fund
(1) Enterprise Funds
are carried into the business - type activities section of the government-wide financial statement , generally with no reconciling items.
(2) Internal Service Funds
Merged with governmental activities displayed in the government- wide financials
(3) Fiduciary Funds
Presented individually as fund financial statements, but are excluded from the government-wide financial statement presentation.
A. GOVERNMENTAL FUNDS
* Modified Accrual Basis (basis of Accounting)
* Current Financial resources measurement focus
GOVERNMENTAL FUNDS
1. General fund
2. special Revenue fund
3. debt Service fund
4. capital Project fund
5. Permanent Fund
General fund
Set up to account for the ordinary operations of a governmental unit which is financed from taxes and other general revenues.
special Revenue funds
specific taxes or other earmarked sources that are restricted or committed to finance particular activities of government
debt Service fund
set up to account for the accumulation of resources and the payment of interest and principal on all "general obligation debt" . Resources of the fund are restricted, committed or assigned to debt service expenditures.
capital Project Funds
Set up to account for resources restricted, committed or assigned for the acquisition or construction of major capital assets by a governmental unit
Permanent fund
To report resources that are legally restricted to the extent income, and not principal, may be used for purposes supporting the reporting governments programs.
B. PROPRIETARY FUNDS
- Full Accrual accounting (basis of accounting).
- Economic Resources measurement focus
internal Service funds
Set up to account for goods and services provided by designated departments on a (cost reimbursement) fee basis to other departments and agencies within a single governmental unit or to other governmental units
Enterprise Funds
Set up to account for the acquisition & operation of governmental facilities & services that are intended to be primarily self supported by user charges.
Enterprise Funds are required when any one of three criteria is met
(1) The activity of the fund is financed by debt secured by a pledge of fee revenue.
(2) Laws require collection fees adequate to recover cost.
(3) Pricing policies are established to produce fees to recover costs.
C. FIDUCIARY FUNDS
Account for assets received where the government acts in the capacity of a trust or agency fund.
1. Pension (and other Employee Benefit) Trust Funds
Account for resources of defined benefit plans, defined contribution plans, post employment benefit plans, and other long-term employee benefit plans.
2. Agency trust Funds
Account for resources in the temporary custody of a governmental unit (taxes collected for another governmental entity)
3. Private Purpose Trust Funds
designated funds for all other trust fund arrangements under which principal and income are for the benefit of specific individuals , private organizations, or the governments.
4. Investment trust funds
External investment Pools.
VI. Measurement Focus and the Basis of Accounting
- The modified accrual basis of accounting is used to accomplish the current financial resources measurement focus.

-The accrual basis of accounting is used to complement the economic resources measurement focus.
A. Balance Sheet - Measurement Focus
1. Current Financial Resources (GRaSPP).
Seeks to value and report funds balances as a measure of available, spendable or appropriable resources.
a. No fixed assets are reported
b. No non current liabilities are reported.
A. Balance Sheet - Measurement focus
2. Economic resources
Seeks to determine the cost of services and the efficiency and effectiveness with which invested capital has been used.

a. Fixed assets are reported.
b. Non - current liabilities are reported.
B. Income Statement -
Basis of accounting: Relates the timing of the measurement made.
1. Modified Accrual (GRaSPP)
a. Revenue is recognized when measurable and available to finance expenditures of the current period.
2. Full Accrual (SE-PAPI)
a. Revenue is recognized when earned.
b. Expenses are recognized when incurred.
1. Modified accrual Basis of Accounting and Current financial Resources Measurement Focus
1. General Fund
2. Special Revenue Fund
3. Debt Service Fund
4. Capital project.
5. Permanent Fund
2. Full Accrual Basis of Accounting & Economic Resources Measurement
SE
1 . Internal Service Fund
2. Enterprise Funds

PAPI
1. Pension Funds
2. Agency Trust Funds
3. Private Purpose Trust Funds
4. Investment Trust Funds
Classification of Governmental Fund Balances
1. Non- spendable Fund Balance
2. Restricted fund Balance.
3. Committed Fund Balance
4. Assigned Fund Balance
5. Unassigned Fund Balance
N
U
C
A
R
Non- spendable fund balance
Restricted fund balance
Committed Fund Balance
Assigned Fund Balance
Unassigned Fund Balance
1. Non-spendable Fund Balance
Current equity in the fund balance is generally comprised of available, spendable resources. To the extent that the equity of a governmental fund is represented by current assets that cannot be spent.
2. Restricted fund Balance
Fund balance resources associated with assets restricted by external authorities
3. Committed Fund Balance
Fund balance resources associated with assets obligated by a formal action of the government's highest decision-maing authority
4. Assigned Fund Balance
Fund Balance resources associated with assets the government intends to obligate but has not formally committed.
5. Unassigned Fund Balance
Unassigned fund balance is a residual equity classification for the general fund. Only the general fund should have a positive unassigned fund balance.
Modified Accrual Accounting: Similarities with commercial GAAP
1. Both can use double entry.
2. Both serve to produce periodic balance sheet or statements of financial position.
3. Both Serve to produce periodic balance sheet or statements of financial position.
4. Both use historical cost and comply with most GAAP.
5. Terminology is similar.
6. Both are concerned with safeguarding assets and providing information for internal and external use.
Modified Accrual Accounting: Differences with Commercial GAAP
1. Funds must comply with both legal statutes and GAAP.
2. There is no profit motive in any governmental fund, thus there is no income determination.
3. Each Fund is a separate entity; a self balancing set of accounts.
4. Budgetary accounting is emphasized in order to control spending.
5. Activity emphasizes flow of current financial resources.
6. Encumbrance accounting is used to record purchase orders.
1. Revenue
Governmental fund revenues are recorded when measurable and available. This sully means the collection period doesn't exceed 60 days after fiscal YE
Non exchange Revenues
Defined by GASB 33 as a transaction in which a government gives or receives value without directly giving or receiving equal value in return
a. Derived Tax Revenues
1) Taxes imposed on or derived from exchange transactions, such as commercial sales, tax payer income, etc.
b. Imposed Non - exchange Revenues
1- Imposed Non exchange revenues represent taxes mposed on non - exchange transactions.

2. Revenues are recorded when the government has an enforceable legal claim. Revenue, however, is only recognized subject to the availability criterion.
c. Government Mandated non- exchange transaction
Represent instances in which a higher level of government provides funds and mandates certain activities by another level of government.
d. Voluntary Non- Exchange Transactions
1. Voluntary non exchange transactions represent instances in which the government receives resources and does not provide equal value .

2. Revenues are recognized when grant restrictions have been met and when resources are measurable and available.
2. Expenditures
Operating and capital Transactions are considered expenditures. Principal payment on debt is considered a debt service expenditure. Capital purchases, debt services payments, and operating expenditures are considered spending of funds.
a. Alternatives for Expenditure Recognition
(1) Purchase Method
(2) Consumption Method
b. Transfers between Funds
Transfers out represent the use of financial resources. Represent Budget transactions that move revenues recorded in one fund to defray expenditures incurred in another fund.