FAR 9 & FAR 10

Question 1

Encumbrances

Answer 1

Purchase orders, obligation to spend

Question 2

JE to set up an Encumbrance

Answer 2

Dr: Encumbrances
Cr: Budgetary control

Question 3

JEs when actual cost is known

Answer 3

Dr: Budgetary control
Cr: Encumbrances (pure reversal)

Dr: Expenditures
Cr: Vouchers payable/cash

Question 4

JE to record reclass of fund balance relative to outstanding prior year POs

Answer 4

Dr: Unassigned fund balance (year-end surplus)
Cr: Fund balance, committed

*Will roll forward any free to use cash that is actually committed

Question 5

Special items vs Extraordinary items

Answer 5

Special = unusual or infrequent
Extraordinary = unusual and infrequent

Question 6

Categories of fund balance

Answer 6

NU CAR

• Nonspendable
• Unassigned
• Committed
• Assigned
• Restricted

Question 7

Integrated approach to financials reporting

Answer 7

1) MD&A
2) Government-wide FS and Fund FS (reconcile)
3) Required supplementary information

Question 8

Primary government governmental activities

Answer 8

GRaSPP + S

Question 9

Primary government business-type activities

Answer 9

E (Not CIPPOE)

Question 10

Major funds

Answer 10

1) Must be 10% of governmental OR enterprise funds

2) AND 5% of total of the two

Question 11

Reconciliation of the Balance Sheet of Governmental Funds to the Government-wide Statement of Net Position

Answer 11

CAN S(IT)
Beg: Governmental Fund balance
1) difference in measurement focus
\+Capital (non current) assets
-Accumulated depreciation
-Long term debt (non current liabilities)
2) difference in basis of accounting
\+ eliminated deferred inflows
- accrued interest payable
\+ Internal service fund net position 
End: Net position from governmental activities

Question 12

Reconciliation of Revenues, Expenditures, and changes in fund balance to the government-wide statement of activities

Answer 12

CPAS RIDE or S(IT)
Beg: Governmental Fund balance
1) difference in measurement focus
\+Capital outlay
\+Principal payments on non current debt
-Asset disposals
-Sources of funds (debt proceeds)
2) difference in basis of accounting
\+Revenue
-Interest expense accrued
-Depreication
\+Internal service fund net revenue