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Flashcards in F8: Governmental Funds Deck (39)
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1

G in "GRaSPP" stands for what?

General fund

2

Purpose of the general fund

Accounts for the general activities of a government that are not accounted for by any other fund

3

Examples of general fund activities

-Admin and general services of the government

4

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

5

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)

6

Types of expenditures of the general fund

-General government
-Public safety
-Culture and recreation

7

The assets and liabilities of the general fund consist of _______ items

Current items only

8

How are fixed assets accounted for in the general fund?

As expenditures

9

R in "GRaSPP" stands for what?

Revenue (Special) Fund

10

Purpose of the special revenue fund

-Revenues and expenditures that are legally restricted or committed
-Life of the fund may be limited or unlimited

11

Expendable Trust Activities definition

-Examples: scholarship and endowment funds
-Principal and income are expended over the life so they are depleted at the end

12

Expendable Trust Activities should be accounted for how?

In a special revenue fund

13

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

14

S in "GRaSPP" stands for what?

Service (debt) fund

15

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

16

What does the debt service fund pay off?

The debt of the GRaSPP funds

17

What does the debt service fund NOT pay off?

The debt of the SE-PAPI funds

18

What is NOT used under the debt service fund?

Encumbrances

19

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

20

Is there an allocation between principal and interest under the debt service fund?

NO! both are expenditures

21

Is there an accrual of interest expenditure or interest payable?

NO!

22

Is there any amortization or premium of a bond discount?

NO!

23

Debt Service Fund closing entries

-Reverse for same amount established at beginning
-Close activity for actual amount

24

1st P in "GRaSPP" stands for what?

Projects (Capital) Fund
(think: purchasing department)

25

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)

26

What is the life of the capital projects fund?

Should be short- limited to a construction period of 1-3 years

27

Revenues and Other Financing Sources for the Capital Projects Fund

-Investment earnings
-Tax revenues
-Capital grants
-Special assessments

28

Capital grants definition

Monies received in advance

29

How capital grants are recorded

As a liability, expended as earned

30

Restrictive VS. Unrestrictive grant money treatment

Restrictive = Deferred until earned
Unrestrictive = revenue now (recognized immediately)