GASB Shit Flashcards
GASB Statement No. 54 eliminated the use of “reserve” and “unreserved” fund balances. The appropriate fund balance classifications are Nonspendable, Restricted, Committed, Assigned, and Unassigned.
GASB Statement No. 54 eliminated the use of “reserve” and “unreserved” fund balances. The appropriate fund balance classifications are Nonspendable, Restricted, Committed, Assigned, and Unassigned.
There are 3 types of funds:
- Governmental Funds - Accounts for sources, uses, and balances of general government financial resources (ex - Taxes)
- Proprietary Funds - Accounts for Business Type Activities
- Fiduciary Funds - Accounts for resources held by government in its capacity as trustee or agent for the benefit of others
There are 3 types of funds:
- Governmental Funds - Accounts for sources, uses, and balances of general government financial resources (ex - Taxes)
- Proprietary Funds - Accounts for Business Type Activities
- Fiduciary Funds - Accounts for resources held by government in its capacity as trustee or agent for the benefit of others
Types of Governmental Funds (the consonants in the acronym DRIP CEG) (uses “expenditures” instead of “expenses” and uses the modified accrual basis):
- General Fund - Accounts for everything that is not required to be accounted for by a different type of fund (its the “catch-all” fund).
- Special Revenue Funds - Accounts for specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects
- Capital Project Funds - Accounts or resources that are restricted, committed, or assigned for construction or acquisition of capital facilities and other capital assets.
- Debt Service Funds - Accounts or resources that are restricted, committed, or assigned to debt service principal and interest expenditures
- Permanent Funds - Accounts for endowments in which its earnings are restricted to support government programs that are dedicated for a public purpose
Types of Governmental Funds (the consonants in the acronym DRIP CEG) (uses “expenditures” instead of “expenses” and uses the modified accrual basis):
- General Fund - Accounts for everything that is not required to be accounted for by a different type of fund (its the “catch-all” fund).
- Special Revenue Funds - Accounts for specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects
- Capital Project Funds - Accounts or resources that are restricted, committed, or assigned for construction or acquisition of capital facilities and other capital assets.
- Debt Service Funds - Accounts or resources that are restricted, committed, or assigned to debt service principal and interest expenditures
- Permanent Funds - Accounts for endowments in which its earnings are restricted to support government programs that are dedicated for a public purpose
Types of Proprietary Funds (the vowels in the acronym DRIP CEG) (uses “expenses” terminology and accrual accounting):
- Enterprise Funds - Accounts for business type activities in which the public is the primary user (ex - external user)
- Internal Service Funds - Accounts for business type activities in which governmental departments are the primary user (ex - internal user)
Types of Proprietary Funds (the vowels in the acronym DRIP CEG) (uses “expenses” terminology and accrual accounting):
- Enterprise Funds - Accounts for business type activities in which the public is the primary user (ex - external user)
- Internal Service Funds - Accounts for business type activities in which governmental departments are the primary user (ex - internal user)
Types of Fiduciary Funds (acronym PIPPA):
- Pension Trust Funds - Accounts for assets held in trust to provide employee retirement benefits (uses accrual basis of accounting)
- Private Purpose Trust Funds - Accounts for assets held in trust created to benefit individuals (non-governmental funds and uses accrual basis of accounting)
- Investment Trust Funds - Accounts for assets held in trust for other participants, usually other governments
- Agency Funds - Accounts for assets held in a custodial fashion
Types of Fiduciary Funds (acronym PIPPA):
- Pension Trust Funds - Accounts for assets held in trust to provide employee retirement benefits (uses accrual basis of accounting)
- Private Purpose Trust Funds - Accounts for assets held in trust created to benefit individuals (non-governmental funds and uses accrual basis of accounting)
- Investment Trust Funds - Accounts for assets held in trust for other participants, usually other governments
- Agency Funds - Accounts for assets held in a custodial fashion
Transfers between funds are classified as Other Financing Sources and Uses.
Transfers between funds are classified as Other Financing Sources and Uses.
When is an Enterprise Fund required?
- Revenue Bonds
- Laws and regulations establish fees
- Pricing policies based on capital maintenance
Statement of Cash Flows for Govt is different from the private sector:
- It has 4 sections instead of 3 (Operating, Noncapital Financing, Capital and Related Financing, Investing)
- Direct method is required
- Noncash sections are reported on the face of the statement
Statement of Cash Flows for Govt is different from the private sector:
- It has 4 sections instead of 3 (Operating, Noncapital Financing, Capital and Related Financing, Investing)
- Direct method is required
- Noncash sections are reported on the face of the statement
There are two ways to present a component unit gov’t:
- Blended - Essentially treated similar to fund of the primary gov’t (used when Component Units governing body and Primary Gov’ts governing body are SUBSTANTIALLY THE SAME and the services that the Component Unit provides are only for the Primary Gov’t).
- Discretely presented - a separate column in the financial statements of the primary gov’t
There are two ways to present a component unit gov’t:
- Blended - Essentially treated similar to fund of the primary gov’t (used when Component Units governing body and Primary Gov’ts governing body are SUBSTANTIALLY THE SAME and the services that the Component Unit provides are only for the Primary Gov’t).
- Discretely presented - a separate column in the financial statements of the primary gov’t
Financial Accountability occurs if any one of these 3 combos are met (a Component Unit exists as part of a Primary Gov’t):
- Appointment Authority + Financial Benefit or Burden
- Appointment Authority + Ability to Impose Will
- Fiscal Dependence + Financial Benefit or Burden
Financial Accountability occurs if any one of these 3 combos are met (a Component Unit exists as part of a Primary Gov’t):
- Appointment Authority + Financial Benefit or Burden
- Appointment Authority + Ability to Impose Will
- Fiscal Dependence + Financial Benefit or Burden
Elements of GASB Financial Statements:
- Assets (plus)
- Deferred Outflow of Resources (minus)
- Liabilities (minus)
- Deferred Inflow of Resources (equals)
- Net Position (replaced Net Assets)
Elements of GASB Financial Statements:
- Assets (plus)
- Deferred Outflow of Resources (minus)
- Liabilities (minus)
- Deferred Inflow of Resources (equals)
- Net Position (replaced Net Assets)
GASB Concept Statements provide GASB guidance in its standard-setting activities but are NOT GAAP
GASB Concept Statements provide GASB guidance in its standard-setting activities but are NOT GAAP
Purpose of financial reporting:
- Accountability—This is based on the belief that the taxpayer has a “right to know” is accomplished by providing information to assist users in determining whether the government was operated within the legal constraints imposed by the citizenry.
- Interperiod equity—This is a significant part of accountability by showing whether current-year revenues are sufficient to pay for current-year services or whether future taxpayers will be required to assume burdens for services previously provided.
Purpose of financial reporting:
- Accountability—This is based on the belief that the taxpayer has a “right to know” is accomplished by providing information to assist users in determining whether the government was operated within the legal constraints imposed by the citizenry.
- Interperiod equity—This is a significant part of accountability by showing whether current-year revenues are sufficient to pay for current-year services or whether future taxpayers will be required to assume burdens for services previously provided.
Of the 11 types of funds, only Governmental Funds and Enterprise Funds actually make it into the gov’t wide financial statements
Of the 11 types of funds, only Governmental Funds and Enterprise Funds actually make it into the gov’t wide financial statements
Typical Adjustments you’d make to the Statement of Net Position when converting from funds to gov’t wide statements (most of the adjustments are the first two):
- Add capital assets and accumulated depreciation
- Add long-term liabilities
- “Dissolve” Internal Service Funds
- Internal balances
- Year-end accruals
Typical Adjustments you’d make to the Statement of Net Position when converting from funds to gov’t wide statements (most of the adjustments are the first two):
- Add capital assets and accumulated depreciation
- Add long-term liabilities
- “Dissolve” Internal Service Funds
- Internal balances
- Year-end accruals