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63 Cards in this Set

  • Front
  • Back
Governmental Accounting
1)Operational Accountability
2)Fiscal Accountability
Operational Accountability
demonstrated by gov't wide financial statements which illustrate how effective the org has been at using its resources.
Fiscal Accountability
illustrated by fund financial statements which show the org's compliance with laws and regulations affecting its spending activities.
Integrated Approach
refers to the fact that the govt fin. statements show operational and and fiscal accountability and the relationship between the two. Requires a reconciliation between the gov't wide fin. statements and the fund fin. statements.
GASB minimum required
5 Bullets
1)Management's Discussion and Analysis(Required Supplementary Information
2)Government Wide Financial Statements
3)Fund Financial Statements
4)Notes to Financial Statements
5)Required Supplementary Information
Government Wide Financial Statements
1)Statement of Net Assets
2)Statement of Activities
Fund Financial Statements
1)Government Funds
2)Proprietary Funds
3)Fiduciary Funds
Required Supplementary Information other than Management's Discussion and Analysis
1)Schedule of Funding Progress
2)Schedule of Employer Contributons
3)Budgetary Comparison Schedules
4)Information about Infrastructure Assets
5)Claims Development Information
Governmental Funds
(Modified Accrual Basis)
1)Balance Sheet
2)Statement of Revenues, Expenditures, and Changes in Fund Balances
Proprietary Funds
(Accrual Basis)
1)Statement of Net Assets
2)Statement of Revenues, Expenses, and Changes in Fund Net Assets
3)Statement of Cash Flows
Fiduciary Funds
(Accrual Basis)
1)Statement of Fiduciary Net Assets
2)Statement of Changes in Fiduciary Net Assets
Comprehensive Annual Financial Report
1)Introductory Section
2)Financial Section
3)Statisitical Section
Intro Section
letter of transimittal, org chart, and list of principal officials
Financial section
auditor's report, and required information
Statistical Section
net assets by component, changes in net assets, demographics, and economic statistics.
Special Purpose Governments
includes park districts, tollway authorities, school districts, and sanitation districts.
Component Unit
a legally separate org for which the elected officials of a primary govt are financially accountable. Ex. School Board.
Discretely Presented
Reported in a separate column off to the right of govt wide financial statements.
Component units are presented with the primary component figures because the activities are "INDISTINGUISHABLE"
Fundraising Org
whose primary purpose is to raise or hold sig resources for the benefit of a govt unit shoud be reported as a component unit.
Mgt's Discussion and Analysis
(Required Supplementary Information)
overview of govts financial activities
1)Discussion of fin. statements
2)Analysis of variations between budgets
3)Description of any known facts that would affect the govt financial position
Government Wide Financial Statements
(Accrual Basis)
1)Statement of Net Assets
2)Statement of Activities
Statement of Net Assets
(Full Accrual accounting)
a type of balance sheet. Assets-Liabilites=Net Assets is used.
3 Categories of Net Assets
1)Inveested in Capital Assets
Invested in Capital Assetsn net of related debt calcuation
Value of capital assets-accumulated depreciation-debt associated with capital assets acquisition
1)externally imposed by creditors
2)imposed by law
Unrestriced Net Assets
is a "plug" figure. Total Net Assets-invested in capital assets, net of related debt and the restricted net assets.
Columns of Statement of Net Assets
1)Governmental Activities
2)Business Type
3)Total Primary Govt
4)Component Units
Statement of Activities
(Accrual Basis)
reports revenues and expenses
Fund Financial Statements
Fund accounting is used internally and to prepare govt wide financial statements with worksheet adjustments
Restricted Net Assets
externally imposed by creditors
Unrestricted Net Assets
is a "plug" figure computed by taking the total net assets and subtracting the invested in capital assets, net of related debt and the restricted net assets
Statement of Activiites
(Accrual Basis)
reports revenues and expenses on the full accrual basis. Expenses are reported by function
Fund Financial Statements
Most govts use fund accounting internally and prepare the govt wide statements with worksheet adjustments from this fund accounting base.
3 Categories of Fund Types
1)Governmental Funds
2)Proprietary Funds
3)Fiduciary Funds
Governmental Funds
(Modified Accrual Basis)
2)Special Revenue
3)Debt Service
4)Capital Projects
Proprietary Funds
(Accrual Basis)
1)Internal Service
Fiduciary Funds
(Accrual Basis)
2)Pension and other employee benefit trust funds
3)Investement Trust Funds
4)Private Purpose Trust Funds
General Fund
account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds
account for specificf revenue sources tht are legally restricted to expenditure for specified current purposes. Ex:Motor Vehicle Fuel Taxes
Debt Service fund
account for the accumulation of resources for and the payment of genral long term debt AND INTEREST.
Capital Project Funds
account for financial resources to be used for the acquisition or construction of major capital facilities.
Permanent Funds
are used to report resources that are legally restricted to the extent that only earnings, and not principal may be used to support govt programs.
2 Governmental Fund Financial Statements are Required
1)Balance Sheet
2)Statement of Revenues, Expenditures, and Changes in Fund Balances
Proprietary Funds
(Accrual Basis)
focus on total economic resources, income determination, and cash flow presentation.
Internal Service Funds
report any activity that provides goods or services to other funds of the primary govt on a cost reimbursement basis. Ex: Self Insurance
Enterprise Funds
may be used to provide goods or services to external users for a fee. Ex: Water Utilities
3 Statements Requred for Proprietary Funds
1)Statement of Net Assets
2)Statement of Revenues, Expenses, and Changes in Net Assets,
3)Statement of Cash FLows
GASB Statement of Cash Flows
1)Only direct method is acceptable, and reconciliation is required.
4 Categories of GASB Cash Flow Statement
2)Noncapital Financing
3)Capital and Related FInancing
Fiduciary Funds
(Accrual Basis)
fin stat provide info based on the economic measurement focus and Accrual Accounting
2 Fiduciary Fund Statements
1)Statement of Fiduciary Net Assets
2)Statement of Changes in Fiduciary Net Assets
Pension Trust Funds
account for funds held in trust for the payment of employee retirement and other benefits.
Investment Trust Funds
are used to report the external portions of investment pools, when the reporting govt is trustee
Private Purpose Trust Funds
should be used to report all other trust arrangements where the principal and income benefit individuals, private org's. etc.
Agency FUnds
report resources held by the reporting govt in a purely custodial capacity.
Economic Resources Measurement Focus
Uses Accrual basis.
Current Financial Resources Measurement Focus
Uses modified accrual basis
4 Categories of Non Exchange Transactions
1)Derived Tax Revenues
2)Imposed Nonexchange Revenues
3)Govt Mandated Nonexchange Transactions
4)Voluntary Nonexchange Transactions
Derived Tax Revenues
Sales Taxes, Income Taxes, Motro Fuel taxes, payrolll taxes
Imposed Nonexchange Transactions
Property Taxes, and fines.
Government Mandated Nonexchange Transactions
a state may require school districts to "mainstream" certain children by including them in regular classes and to provide extra aides.
Voluntary Nonexchange Transactions
a state provides a grant for new technology for school districts but does not require those districts to accept the grant or utilize that technology.