Governmental Flashcards by Landon Lehr

What are the 3 Categories of Funds (GASB)

Governmental (GRaSPP)
Proprietary (SE)
Fiduciary (CIPPOE)

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Which accounting basis do Governmental Funds use?

Modified-Accrual Accounting (MAC GRaSPP)

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Which accounting basis do Proprietary Funds use?

Accrual Accounting (SCARE)

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Which accounting basis do Fiduciary Funds use?

Accrual Accounting (SCARE)

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What is the primary difference between modified accrual and accrual accounting?

MAC= Current Assets ONLY (no FA or LTD)
SCARE= Includes FA and LTD

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Governmental Fund List

GRaSPP
General fund
special Revenue fund
debt Service fund
capital Projects fund
Permanent fund

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Proprietary Fund List

SE
internal Service fund
Enterprise fund

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Fiduciary Fund List

CIPPOE
Custodial fund
Investment fund
Private purpose fund
Pension (and Other Employee benefit) fund

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Examples of Derived Non-Exchange Revenues and their Revenue Recognition

Sales and Income Taxes (May or May not Happen)

Recognized when received within 60 days of year-end

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Examples of Imposed Non-Exchange Revenues and their Revenue Recognition

Fines and Property Taxes (Customer must pay)

Recognized when billed

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Examples of Government Mandated Non-Exchange Revenues and their Revenue Recognition

Grants

Recognized when eligibility is met

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Examples of Voluntary Non-Exchange Revenues and their Revenue Recognition

Resources are willingly conveyed for a particular purpose

Recognized when restrictions are met

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What types of funds are EXCLUDED from the government-wide financial report?

Fiduciary (CIPPOE)

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What are the Government-Wide financial statements?

Statement of Net Position

Statement of Activities

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What types of funds are INCLUDED from the government-wide financial report?

Governmental: GRaSPP + S (Proprietary)
Business: E (Proprietary)
Component Units

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What information precedes the government-wide F/S?

Management’s Discussion and Analysis

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What is included in the Governmental Fund Balance Sheet?

Assets + Deferred Outflows (CURRENT ONLY)
Liabilities + Deferred Inflows (CURRENT ONLY)
FUND BALANCE (GOVERNMENTAL ONLY)

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What is included in the Governmental Fund Income Statement?

Other financing sources (proceeds from debt and interfund transfers) and other financing uses

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What is included in the Proprietary Fund Balance Sheet?

Assets + Deferred Outflows
Liabilities + Deferred Inflows
NET POSITION (PROPRIETARY AND FIDUCIARY)

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What is included in the Fiduciary Fund Balance Sheet?

Assets + Deferred Outflows
Liabilities + Deferred Inflows
NET POSITION (PROPRIETARY AND FIDUCIARY)

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Which type of funds must report a Statement of Cash Flows?

Proprietary (Internal Service and Enterprise)

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What determines a “Major Fund”

1) At least 10% of assets + deferred outflows, liabilities + deferred inflows, revenues, or expenditures of ALL Governmental OR ALL Enterprise
2) At least 5% of assets + deferred outflows, liabilities + deferred inflows, revenues, or expenditures of ALL Governmental AND ALL Enterprise combined

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Reconciliation to Government-Wide F/S Calculation (Change in Net Position of Gov Activities - IS)

CPAS RIDe or SIT= GRaSPP -> Gov-Wide
\+ Capital outlay
\+ Principal payments (CY)
- Asset disposals (NBV)
- Sources (other financing, debt proceeds)
\+ Revenue (measurable but unavailable)
- Interest expense (Accrued NOT PAID)
- Depreciation expense
\+ internal Service fund net revenue
\+/- eliminate Interfund Transfers

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GASB: Stmt of Cash Flows Categories

Operating
Noncapital Financing
Capital and Related Financing
Investing Activities

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GASB and FASB: Where are interest income and cash receipts reported on the Stmt of Cash Flows?

GASB: Investing Activities FASB: Operating Activities

GASB and FASB: Where are interest expense and cash payments reported on the Stmt of Cash Flows?

GASB: Capital/Noncapital Related Financing FASB: Operating Activities

GASB and FASB: Where are capital asset purchases reported on the Stmt of Cash Flows?

GASB: Financing FASB: Investing

GASB: Transactions unique to government are reported where on Stmt of Cash Flows?

Non-capital financing

GASB: Reconciliation of Operating Income to Net Cash on Stmt of Cash Flow

Operating

GASB: How should infrastructure be accounted for?

Capitalized non-current assets unless unable to arrive at cost data. In this case Modified Approach (no capitalization) can be used provided supplementary information is given.

GASB: What are the components of Net Position?

"RUN" when you "SE" (SE-CIPPOE) Net Position Net Investment in Capital Assets Restricted: externally imposed Unrestricted: else

GASB: What are the components of Fund Balance?

NU CAR ``` Nonspendable- inventories Unassigned Committed Assigned Restricted ```

GASB: Program Revenues List

SOC charges for Services Operating grants and contributions Capital grants and contributions

GASB: Combining statements of non-major funds to be displayed in "Other Supplementary Information" is ???

Optional

GASB: Should expenditures for a government unit extending over a period of time be allocated or accounted for in the period of acquisition

Both are allowed

GASB: Revenue is recognized in the year it is collected plus ??? in the following year.

60 days

GASB: How do governmental funds report BDE?

They don't, revenue is recognized for the amount deemed collectable, remainder is allowance for uncollectable

GASB: Journal Entry for Acquisition of LT Asset (Governmental Fund)

DR: Capital Outlay Expenditure CR: Other Financing Sources

GASB: Leases for Governmental, Fiduciary, and Proprietary

Lease < 12 months: Short-Term Ownership Transfer: Lease that Transfers Ownership Other: Lease Other Than Short Term or Transfers Ownership

GASB: What type of funds use the account "Other Financing Sources (Uses)"?

GRaSPP ONLY

GASB: What is an exchange transaction?

Reciprocal transfer in which both parties sacrifice equally

GASB: Encumbrances outstanding at year end in the General Fund are reported as ???

Committed

GASB: Journal Entry for Government funds that have assets associated with unavailable resources

DR: A/R CR: Deferred Inflow of Resources

GASB: Amount Available in Fund for Use Equation

Appropriations - Encumbrances - Expenditures = Available

GASB: If expenditures > amounts given to a fund, how are deficits labeled?

Negative Fund Balance - Unassigned

GASB: Budgetary control can NEVER be ??? encumbrances

Greater than

GASB: Budget Inception and Adjustment Journal Entry

DR: Expected Revenues DR: Budgetary Control (Deficit) CR: Budgetary Control (Surplus) CR: Appropriations Control

GASB: Purchase Order Issuance Journal Entry

DR: Encumbrances CR: Budgetary Control

GASB: If purchase order for a government fund is greater than the amount needed to pay, how should this be handled in a journal entry?

DR: Budgetary Control (SAME amt as initial) CR: Encumbrances (SAME amt as initial) DR: Expenditures (Amt we actually owe) CR: A/P (Amount we actually owe)

GASB: Focus of Government-Wide F/S

Operational Accountability

GASB: Focus of Fund F/S

Fiscal Accountability

GASB: Documents Required Reporting for Government-Wide F/S

Management's Discussion and Analysis, Basic F/S, and Required Supplementary Information

GASB: What are the traits of special purpose local governments?

SELF Separately Elected Legally separate Fiscally independent of other state/local gvt

GASB: Should the component unit be reported as Blended or as Discrete?

Blended: Substantially the same as primary govt OR serves primary gvt exclusively Discrete: Anything else [DEFAULT- MOST LIKELY]

GASB vs FASB: Construction Period Interest

GASB: Not Capitalized (Expenditure GRaSPP, Int Expense SE-CIPPOE) FASB: Capitalized

GASB: Modified Approach Infrastructure

Infrastructure expenditures are reported as expenses except outlays that result in additions or improvements, which would be capitalized

GASB: Infrastructure Addition Accounting Journal Entry

DR: Capital Asset CR: Capital Outlay Expenditure

GASB vs FASB: Are cash and cash equivalents included on the Stmt of Cash Flow?

GASB: Yes; DIRECT METHOD is used thus allowing it FASB: DIRECT yes; INDIRECT NO

GASB: Which fund is ALWAYS reported as a major funds?

The General Fund

GASB: Which fund is NEVER considered in the calculation to find major funds?

Internal Service Funds are NOT included

GASB: Aggregate Fund Balance/Equity is ??? used to determine the 10% rule for major funds

NEVER

GASB: Cash receipts from Grants and Subsidies are found in ??? Activities

Noncapital Financing

Reconciliation to Government-Wide F/S Calculation (Net Position of Gov Activities - BS)

CAN + non-current Assets purchased in PRIOR years - Accumulated depreciation of those PRIOR assets - Non-current liabilities issued in PRIOR years

GASB: Exception to the Modified Accrual rule of expenditures (GR: Recognized when incurred because that is when they become measurable)

Interest and principal on long-term debt are recorded when they become due and payable, not when they accrue.