Flashcards in F8: Governmental Funds Deck (39)
G in "GRaSPP" stands for what?
Purpose of the general fund
Accounts for the general activities of a government that are not accounted for by any other fund
Examples of general fund activities
-Admin and general services of the government
What to remember about the revenue sources and expenditure types of the general fund
-Has the largest variety of revenues in a governmental unit
-Has the largest share of expenditures in a governmental unit
Types of revenue sources of the general fund
-Taxes (property taxes, franchise and public service)
-Public safety and regulation (fees, fines, license and permit revenues)
-Intergovernmental (shared or grant revenues)
-Charges for services
-Other revenues (investment earnings)
Types of expenditures of the general fund
-Culture and recreation
The assets and liabilities of the general fund consist of _______ items
Current items only
How are fixed assets accounted for in the general fund?
R in "GRaSPP" stands for what?
Revenue (Special) Fund
Purpose of the special revenue fund
-Revenues and expenditures that are legally restricted or committed
-Life of the fund may be limited or unlimited
Expendable Trust Activities definition
-Examples: scholarship and endowment funds
-Principal and income are expended over the life so they are depleted at the end
Expendable Trust Activities should be accounted for how?
In a special revenue fund
The rule of thumb for the use of the correct fund with grants is:
-If government monitoring, special revenue fund
-If non-monitoring, agency trust fund
S in "GRaSPP" stands for what?
Service (debt) fund
Purpose of the service (debt) fund
Accumulation of resources and payment of currently due principal on "LT general obligation debt" by setting aside cash and cash equivalents
What does the debt service fund pay off?
The debt of the GRaSPP funds
What does the debt service fund NOT pay off?
The debt of the SE-PAPI funds
What is NOT used under the debt service fund?
Expenditure timing under the debt service fund
P&I expenditures recorded when they are legally payable per the bond agreement
-There is no profit motive, so no matching principle
Is there an allocation between principal and interest under the debt service fund?
NO! both are expenditures
Is there an accrual of interest expenditure or interest payable?
Is there any amortization or premium of a bond discount?
Debt Service Fund closing entries
-Reverse for same amount established at beginning
-Close activity for actual amount
1st P in "GRaSPP" stands for what?
Projects (Capital) Fund
(think: purchasing department)
Purpose of the projects (capital) fund
For the construction or purchase or leasing of significant fixed assets used by GRaSPP only (not by SE-PAPI)
What is the life of the capital projects fund?
Should be short- limited to a construction period of 1-3 years
Revenues and Other Financing Sources for the Capital Projects Fund
Capital grants definition
Monies received in advance
How capital grants are recorded
As a liability, expended as earned