Governmental Accounting Flashcards
(140 cards)
1
Q
Basis of Accounting
A
When transactions and events are recognized
2
Q
Measurement Focus
A
What is being reported on – which assets and liabilities will be given recognition and reported on the balance sheet
3
Q
Nonspendable Fund Balance
A
Fund balance that includes amounts that are not in spendable form or are legally or contractually required to be maintained intact.
4
Q
Restricted Fund Balance
A
Fund balance that includes amounts constrained for specific purposes by external parties, through constitutional provisions or by enabling legislation.
5
Q
Committed Fund Balance
A
Fund balance that includes amounts constrained for specific purposes determined and adopted by a formal action by the highest decision-making authority of the government itself.
6
Q
Assigned Fund Balance
A
Fund balance that includes amounts a government explicitly intends to use for specific purposes.
7
Q
Unassigned Fund Balance
A
Fund balance that is the residual classification for the general fund and comprises all amounts not included in the other classifications.
8
Q
General Fund
A
This fund accounts for all resources that are not required to be accounted for in other funds; in essence, it accounts for all unassigned resources.
9
Q
Special Revenue Funds
A
Funds that are used to account for revenues that are restricted or committed to expenditure for specific purposes other than debt service or capital projects.
10
Q
Debt Service Funds
A
Funds that are used to account for resources that are restricted, committed, or assigned for the payment of interest and principal on long-term debt.
11
Q
Capital Projects Funds
A
Funds that are used to account for resources that are restricted, committed, or assigned for capital outlays.
12
Q
What are Permanent Funds?
Who benefits from this type of fund?
A
Funds that are used to report resources that are legally restricted so that only earnings, not principal, may be used to support the government’s programs.
This type of fund benefits the citizens at large or the government itself.
13
Q
Governmental-Type Funds
A
Funds that are maintained to account for governments’ operating and financing activities.
14
Q
Proprietary-Type Funds
A
Funds that are used to account for the ongoing business-type activities of a government
15
Q
Enterprise Funds
A
Funds that are used to account for business-type activities in which the government sells goods or services to the general public at large (users external to the governmental unit).
16
Q
Internal Service Funds
A
Funds that are used to account for business-type activities in which the customers are other funds, departments, or agencies within the same governmental unit, or occasionally to other governmental units.
17
Q
What are the Two Types of Proprietary Funds?
A
Enterprise Funds;
Internal Service Funds
18
Q
What are Trust Funds?
Who do they benefit?
A
Funds that are used to account for assets that the government holds as a trustee (a party that administers property for a beneficiary) for the benefit of parties other than the government itself.
19
Q
Unlike the other types of funds, _________ are neither consolidated with, nor even incorporated into, government-wide statements.
A
Fiduciary Funds
20
Q
Government-Wide Statements are comprised of?
A
Statement of net position;
Statement of activities
21
Q
On government-wide statements, the difference between the government’s assets and liabilities is known as?
A
Net position
22
Q
What are the basic statements for governmental funds?
A
Balance Sheet;
Statement of Revenues, Expenditures, and Changes in Fund Balance
23
Q
What are the basic statements for proprietary funds?
A
Statement of Net Position;
Statement of Revenues, Expenses, and Changes in Net Position;
Statement of Cash Flows
24
Q
Major Fund
A
Funds whose:
- Revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds, AND,
- At least 5 percent of the aggregate amount for all governmental and enterprise funds.
Any other fund may be reported as a major fund if the government’s officials believe that fund is particularly important to financial statement users.
25
What is a nonmajor fund? What column do they fall under?
Funds that are not major. They are combined into the column “other governmental funds.”
26
What is the measurement focus and basis of accounting for governmental funds?
Current Financial Resources;
| Modified Accrual
27
What is the measurement focus and basis of accounting for proprietary funds?
Economic Resources;
| Full Accrual
28
What is the measurement focus and basis of accounting for fiduciary funds?
Economic Resources;
| Full Accrual
29
Encumbrance
A commitment to purchase goods or services.
30
Current Financial Resources
Expendable financial resources; cash and other items that can be converted into cash in the normal course of operations (less current liabilities). “Other items” include investments and receivables but NOT capital assets.
31
Under the modified accrual basis, when should revenues be recognized?
Under this basis, revenues should be recognized when they are both measurable and available to finance expenditures of the current period.
32
Available Revenue
Revenue that is collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period.
33
With respect to _______ taxes, and only ______ taxes, existing standards provide that, revenues should be recognized only if cash if collected within ___ days of year end. How many days for other types of revenues?
Property Taxes; Property Taxes; 60 days.
Other revenues don’t have specific guidance for a number of days.
34
What are nonexchange transactions?
What are the four types of nonexchange transactions?
Nonexchange transactions are those in which the government receives value without directly giving equal value in return. The four types are:
Imposed nonexchange revenues
Derived tax revenues
Government-mandated nonexchange transactions
Voluntary nonexchange transactions
35
What is mils?
1.2% is how many mils?
Mils are dollars per thousand.
1.2% is 12 mils (dollars per thousand).
36
Lien
The right to seize and sell property.
37
Property taxes, which are imposed revenues, should be recognized as revenues in what period?
Property taxes should be recognized in the period for which they are levied.
38
The government-wide statement of activities reports program-specific revenues in (how many) separate columns and in (how many) rows?
What are the names of each of the program revenue columns?
The government-wide statement of activities reports program-specific revenues in three separate columns and in as many rows as there are functions.
The columns are for:
1. Charges for services
2. Program-specific operating grants and contributions
3. Program-specific capital grants
39
When are a government’s liabilities considered current?
A government’s liabilities are considered current only when they must be liquidated with expendable available financial resources.
40
Under the modified accrual basis, when should a government accrue a liability?
Under the modified accrual basis, a government should, as a general rule, accrue a liability in the period in which incurs (i.e. becomes obligated for) the liability.
41
Assets
Resources with present service capacity that the government presently controls.
42
Deferred Outflows
Consumption of net assets by the government that is applicable to a future reporting period.
43
Deferred Inflows
The acquisition of net position by the government that is applicable to a future reporting period.
44
True or False: Prepayments, such as prepaid insurance and prepaid rent, should be presented as deferred outflows.
False. Prepayments, such as prepaid insurance and prepaid rent, should be presented as assets because they have present service capacity that a government presently controls.
45
What is the definition for other financing sources/uses?
An operating statement classification presenting financial inflows and outflows other than revenues and expenditures.
46
What are some examples of other financing sources?
- Proceeds from long-term debt
- Proceeds from sale of capital assets
- PV of liabilities created by capital leases
- Nonreciprocal transfers-in
47
What are some examples of other financing uses?
- Payments to bond "escrow" agents who maintain accounts for eventual repayment of long-term obligations
- Nonreciprocal transfers out
48
What is the difference between extraordinary items and special items?
Extraordinary items are transactions or events that are both unusual and infrequent. They are clearly incidental or unrelated to the ordinary activities of the entity.
Special items are also unusual and infrequent, but they are WITHIN THE CONTROL OF MANAGEMENT. Further, special items include transactions that meet one of the two criteria but not the other--that is, transactions which are either unusual or infrequent, but not both.
49
True or False: Vacations, sick leave, and other compensated absences are accrued on the fund financial statements, regardless of when they are paid.
False. Vacations, sick leave, and other compensated absences are not accrued on the fund financial statements unless they will be liquidated with current financial resources.
50
According to the Statement on Tax Abatement Disclosures issued by the GASB, governments are required to disclose in the notes to their financial statements all of the following except:
A. information about the taxes abated
B. the number of tax abatement agreements entered into in the reporting period
C. the dollar amount of taxes abated in the reporting period
D. the names of the organizations in which the taxes have been abated
D. the names of the organizations in which the taxes have been abated
The Statement of Tax Abatement Disclosures does not require a listing of such organizations.
51
True or False: The accounting for sick leave is treated differently than for vacation leave.
True. They are treated differently since vacation leave is within the control of the employee and the employer, but sick leave is beyond the control of both the employer and the employee.
52
When can interest and principal be accrued on the fund financial statements?
In general, neither interest nor principal should be accrued on the fund financial statements.
If resources to service the debt are transferred to a debt service fund from another governmental fund in a current year for payment of principal and interest due early the next year (within one month), then both the expenditure and related liability may, but is not required to, be recognized in the recipient debt service fund.
53
Which of the following is a reciprocal interfund activity:
A. payments for the purchase of goods and services at a price that approximates their external fair value
B. interfund reimbursements
C. both A and B above
D. none of the above
A. CORRECT. These transfers should be reported as revenues in the seller fund and expenditures (or expenses) in the purchasing fund.
B. Incorrect. Interfund reimbursements should not be reported at all in the financial statements.
C. Incorrect. Only one of the responses is correct.
D. Incorrect. One of the responses is correct.
54
True or False: Interfund reimbursements should not be reported at all in the financial statements.
True. Interfund reimbursements should not be reported at all in the financial statements.
For example, if the general fund paid a bill for a cost that was the responsibility of a capital projects fund, the expenditure and the corresponding reduction in cash should be reported only in the capital projects fund—as if the capital projects fund had paid the bill itself. The capital projects fund should not report a transfer-out to the general fund; the general fund should report neither a payment to the vendor nor a transfer-in from the capital projects fund.
55
Are underwriting and other issue costs capitalized, or are they treated as expenditures?
What should the government do if the issue costs are not set out separately from premiums and discounts?
Underwriting and other issue costs are treated as expenditures.
If the issue costs are not set out separately from premiums and discounts, then the government should estimate them.
56
Per GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, resources transferred as grants before the recipient has satisfied eligibility requirements should be reported as...?
Per GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, resources transferred as grants before the recipient has satisfied eligibility requirements should be reported as an asset by the provider and a liability by the recipient. The rationale is that the recipient does not control the prepayment because in the event it does not meet the eligibility requirements it must return the advance payment to the provider.
57
GAAP direct that debt service funds be established when...?
- Legally required, or
| - Financial resources are being accumulated for principal and interest payments maturing in future years
58
Debt service funds may receive their resources from several sources including...?
- Transfers from the general fund
- Special taxes restricted to the payment for debt
- Special assessments
59
Special Assessment
A compulsory levy on certain properties to defray all or part of the cost of a specific capital improvement or service deemed to benefit primarily those properties or their owners.
60
Term Bonds
Bonds that mature on one lump sum at a specified future date.
61
Serial Bonds
Bonds that mature in a series of installments at future dates--e.g., a portion of a bond issue matures in five years, a portion in six, a portion in seven, and so on.
Serial bonds are, in essence, nothing more than a collection of term bonds, each of which matures at a different time.
62
Yield Curve
The relationship between interest rates and time to maturity.
63
In-Substance Defeasance
An advanced refunding in which the borrower economically, although not legally, satisfies its existing obligations. Issuing new debt, the government places in trust sufficient funds to make all required interest payments through the earliest call date and to redeem the debt on that date.
64
When do the GASB standards require that a government account for special assessment debt as its own:
A. if the government assumes full responsibility for the debt in the event of property owner default
B. if the government is more than 50% responsible for the debt in the event of property owner default
C. if the government is obligated in some manner to assume responsibility for the debt in the event of property owner default
D. whether or not the government is at all responsible for any portion of the debt
A. Incorrect. The government does not have to have assumed full responsibility but must be obligated in some manner.
B. Incorrect. The government does not have to have assumed 50% of the responsibility but must be obligated in some manner.
C. CORRECT. The government is obligated in some manner unless it is prohibited from assuming the debt in the event of property owner default, or it is not legally liable for assuring the debt and makes no statement, or gives no indication that it will, or may, honor the debt in the event of a default.
D. Incorrect. The government must be obligated in some manner.
65
What is fair value?
What are the hierarchy of inputs to used to establish fair value?
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Level 1: quoted prices in an active market for identical assets or liabilities
Level 2: quoted prices for similar assets or liabilities
Level 3: not based on observable quoted prices, but instead based on the best information available in the circumstances
66
What are Bond-Anticipation Notes (BANs)? When can governments issue them?
Short-term notes issued by the lender with the expectation that they will soon be replaced by long-term bonds. Governments can issue BANs only after obtaining the necessary voter approval and legislative authorization to issue long-term bonds.
67
Take-Out Agreement
An agreement between an issuer of demand bonds and a financial institution where the financial institution will provide funding for the issuer in the event that the bondholders demand redemption of their bonds.
68
Under GASB 13 (soon to be superseded), what are the requirements for a capital lease?
Under GASB 13 (soon to be superseded), a capital lease meets any one of the following four conditions:
- Lease transfers ownership to lessee by end of lease term
- Bargain purchase option
- Lease term => 75% of useful life
- PV of rental or other minimum lease payments => 90% of fair value
69
Certificate of Participation (COP)
Entitlement to a participation, or share in the lease payments from a particular project. The lessor generally assigns lease payments to a trustee that distributes the payments to certificate holders. COPs are an alternative to bonds.
70
Revenue Debt
Bonds and other obligations whose principal and interest are payable exclusively from a specific enterprise, such as a utility or toll road. Unlike GO bonds, revenue bonds are not backed by the full faith and credit of the issuer.
71
General Obligation Debt
General obligation debt (a.k.a. GO bonds) are secured by the full faith and credit of the issuing body.
72
Overlapping Debt
Obligations of property owners within a government for their proportionate share of debts of other governments with overlapping geographic boundaries. For example, a city might be in a location that also falls under a county, school district, library district, hospital district, etc.
73
Debt Margin
The difference between the amount of debt outstanding* and the amount of debt allowed.
*Debt outstanding is calculated based on legal provisions, not necessarily the amount on the balance sheet.
74
What chapter of the bankruptcy code covers governments?
Chapter 9
75
GASB 9 requires that government enterprises classify interest paid as ______ activities and interest received as _____ activities.
Interest Paid = Financing;
| Interest Received = Investing
76
GASB 9 requires that that governments report their cash flows using the (direct or indirect?) method.
GASB 9 requires the DIRECT method.
Direct Method: based on source or use. Starts with income and reconciles to cash.
77
When is it optional for a government to account for activities in an enterprise fund?
When is an enterprise fund required?
Per GASB 34, governments MAY use an enterprise fund as long as it charges fees to external users for goods and services.
They are REQUIRED to use an enterprise fund if the activity includes any of the following:
- Activity is financed solely with revenue debt.
- Laws or regulations require that activity’s cost of providing services (including capital costs) be recovered by fees and charges rather than general purpose taxes or similar charges. .
- Pricing is designed to recover costs, including capital costs
78
Impact Fees
A municipal fee charged to developers for anticipated improvements, such as new water and sewer lines, that will be required because of new development.
79
Tap Fees
Fees to new utility customers to hook up to existing system. May exceed cost to connect the customer to the system; part may cover customer’s share of capital cost of system already in place.
80
Insofar as tap fees and similar types of charges cover the actual costs of hooking a customer into a utility system, they should be considered __________ transactions and accounted for as __________ revenues.
To the extent, however, that they exceed the actual costs or are unrelated to them, they should then be interpreted as ___________ transactions and be classified as ___________ or ___________.
Insofar as tap fees and similar types of charges cover the actual costs of hooking a customer into a utility system, they should be considered EXCHANGE transactions and accounted for as OPERATING revenues.
To the extent, however, that they exceed the actual costs or are unrelated to them, they should then be interpreted as NONEXCHANGE transactions and be classified as CAPITAL CONTRIBUTIONS or NONOPERATING revenues.
81
The government-wide statement of net position (balance sheet) contains two columns ("___________" and "___________") under the heading "___________".
The government-wide statement of net position (balance sheet) contains two columns (GOVERNMENTAL ACTIVITIES and BUSINESS-TYPE ACTIVITIES) under the heading “PRIMARY GOVERNMENT.”
82
Service Concession Arrangements
Service concession arrangements are basically a type of arrangement in which a government transfers to an independent operator (usually a private firm but sometimes another government) the right and related obligation to provide services through the use of infrastructure or some other public asset.
In exchange, the government receives from the operator either an up-front payment or a series of payments over time.
The operator then collects tolls or other fees from the facility users.
Government has some control (e.g., sets fees) and receives asset back at end of arrangement.
83
ISF balances that are not eliminated in the consolidation process should be reported in the statement of net position in which column?
ISF balances that are not eliminated in the consolidation process should be reported in the statement of net position in the governmental activities column, unless the fund provides services primarily to enterprise funds.
If the ISF provides services mainly to enterprise funds, then it would be presented in the business-type activities column.
84
In the government-wide statements, how are ISF revenues and expenses consolidated?
In the government-wide statements, the revenues of the ISF and the offsetting expenses of the service recipient funds are eliminated in the consolidation process.
85
In the government-wide statements, how are ISF assets and liabilities consolidated?
ISF assets and liabilities, other than interfund receivables between governmental and business-type, are not eliminated in the consolidation process.
86
True or False: The amount that an ISF earns as a profit is added to its fund balance and carried over to the following year, unless it is transferred to another fund.
False. ISF do not exist to earn a profit. Their revenues should equal their expenses.
87
In the proprietary fund statements, under what heading are internal service funds shown?
Even though internal service funds are incorporated into the proprietary fund statements, they appear under the heading, “Governmental Activities—Internal Service Funds.”
88
The statement of cash flows should be classified into how many categories? What are the categories?
The four categories are:
1. Cash flows from operating activities
2. Cash flows from noncapital financing activities
3. Cash flows from capital and related financing activities
4. Cash flows form investing activities
89
Government pension trusts that are organizationally separate from their sponsoring governments are often referred to as _______________.
Public Employee Retirement Systems (PERS)
90
Cost-Sharing Multiple-Employer Plan
- Employees of all participating governments are placed in a common pool.
- Employers share all of risks and costs and make contributions at the same rate.
- Plan assets may be used to pay any employee's benefits, regardless of the participating government they worked for
- ASRS is this type of plan. (PSPRS is a different type.)
91
Single (or Sole) Employer Plans
Pension plan for a single employer and covers only the employer's own employees.
92
Agent Multiple-Employer Plan
- Invested assets are pooled
- Separate accounts are maintained and actuarial computations are made for each employer
- In substance, each employer has its own plan; the sponsoring agent merely provides administrative and investment services
- Accounting for agent-multiple employer plants is, in essence, the same as for single employer plans
- PSPRS is this type of plan. (ASRS is a different type.)
93
Net Pension Liability
Per GASB 68, the government employer is required to report as its pension liability the difference between the TOTAL PENSION LIABILITY and the NET PLAN POSITION. The difference is referred to as the NET PENSION LIABILITY.
- Total pension liability is an actuarial determination
- Net plan position is the total assets (cash and investments) in the pension plan less any pension plan liabilities
94
Entry Age Actuarial Cost Method
Allocates the present value of the projected benefits over the course of an employee's career as a level percentage of payroll.
95
GASB 68 Discount Rate Requirements
GASB 68 requires that the pension discount rate be a "blended" rate. It should be a single rate that reflects the following:
1. Long-term expected rate of return on plan investments to the extent that the plan's fiduciary net position (plan assets less plan liabilities) is projected to be sufficient to meet future benefit payments and satisfy administrative costs, and,
2. Yield or index rate on high-quality 20-year municipal bonds to the extent that plan's fiduciary net position is projected to be insufficient to meet future benefit payments.
96
What factors affect the total pension liability?
Routine factors that happen every year:
- Amount allocated per the actuarial cost method
- Interest on the pension liability
- Benefit payments to retirees
Other factors to be considered:
- Changes in net position benefits
- Changes in actuarial assumptions
- Differences between expected and actual experience
97
What factors affect the plan fiduciary net position?
- Employer contributions
- Investment earnings
- Benefit payments to retirees
- Admin and other miscellaneous costs
98
What are the main sections of the CAFR?
1. Introductory Section
- Letter of transmittal
- General government info
- Elected and administrative officials
- Certificate of Achievement for Excellence in Financial Reporting from GFOA (if applicable)
2. Financial Section
- Independent auditor's report
- MD&A
- Basic financial statements
- Notes
- RSI
- Combining statements, individual fund statements, and schedules (if required)
3. Statistical Section
- Current and historical data on demographics, economy, tax rates, outstanding debt, other info
99
GFOA stands for...?
Government Finance Officers Association
100
What are the minimum requirements for general-purpose financial statements?
- MD&A
- Government-wide financial statements
- Fund financial statements
- Notes
- RSI
101
What are the three exceptions to the general rule that pension expense equal the change in net pension liability? How are they recognized?
The three exceptions are:
1. Changes in actuarial assumptions
- Recognized over the average of the expected remaining service lives of plan members starting in year of gains/losses. Remaining services lives is average of active and retirees (retirees have service life of zero which drags down average).
2. Differences between expected and actual experience with regard to economic or demographic factors
- Recognized over the average of the expected remaining service lives of plan members starting in year of gains/losses. Remaining services lives is average of active and retirees (retirees have service life of zero which drags down average).
3. Differences between actual and projected investment earnings on plan assets
- Recognized over a period of five years
102
Endowment
A contribution where the donor requires that the principal be invested and remain intact. Only the income may be expended.
103
What is the measurement focus and basis of accounting for permanent funds?
Current Financial Resources;
| Modified Accrual
104
True or False: Permanent funds and fiduciary funds both use full accrual.
False. Permanent funds use modified accrual. Fiduciary funds use full accrual.
105
Private-Purpose Trust Funds
These are trust funds other than investment pools and pensions in which the resources are held for the benefit of outsiders. Examples include:
- Escheat property
- Scholarships to benefit a narrowly defined class of students (e.g., from a specific town)
- Endowments held to benefit needy employees or their families (e.g., a fund for children of slain police officers)
106
Where should the fund statements of the fiduciary funds be presented?
The fund statements of fiduciary funds should be presented in a separate section of the financial statements, immediately following those of proprietary funds.
107
Custodial Funds
Custodial funds are used to account for all other fiduciary activities. Funds that are generally used to account for assets (e.g., taxes collected by one government on behalf of another) that a government holds as a custodian temporarily for other parties.
108
What are the two types of Fiduciary Funds?
Trust Funds;
| Custodial Funds
109
What are the basic statements for fiduciary funds?
Statement of Fiduciary Net Position;
| Statement of Changes in Fiduciary Net Position
110
What are the major types of fiduciary funds?
- Pension (and other employee benefit) trust funds
- Investment trust funds
- Private-purpose trust funds
- Custodial funds
111
What are Fiduciary-Type Funds?
Who benefits from these type of funds?
Funds that are used to account for resources held by the government in a trust or custodial capacity that are intended to benefit parties other than the government itself.
THIS IS A SIMPLIFIED DEFINITION. GASB 84 has extensive criteria for what is considered a fiduciary activity.
112
True or False: Custodial fund assets equal liabilities.
False. Custodial funds can have a fund balance. Assets do not necessarily equal liabilities.
113
Per GASB 14, a financial reporting entity should consist of....?
Per GASB 14, a financial reporting entity should consist of PRIMARY GOVERNMENT (the larger, creating government) and its COMPONENT UNITS (the typically smaller, created government).
114
Primary Government
Per GASB 14, a primary government is any state government or general-purpose local government.
115
Fiscal Independence
Implies that the government has authority, without approval from other governments, to:
- Determine its budget
- Levy taxes or set rates and charges
- Issue bonds
116
What is a component unit?
When is a component unit considered financially accountable?
A legally separate government for which the elected officials of the primary government are financially accountable. May also be an organization whose exclusion would cause a primary government's statements to be misleading or incomplete.
A component unit is considered financially accountable when:
- the primary government appoints a majority of the board and can either impose its will on the component unit,
- OR, if there is a financial benefit/burden relationship.
117
How are component units reported (presented)?
The two methods are:
DISCRETE PRESENTATION
- Default means of reporting
- Presented separately from primary government
BLENDING
- Combining the component unit's transactions and balances as if they were part of the primary government
- Appropriate when component units share a governing body with the primary government or when there is an exclusive benefit to the primary government.
118
True or False: A primary government can only present one general fund.
True. A primary government can only present one general fund.
119
How are the general funds of component units presented when using blended presentation?
When using blended presentation, the general funds of the component units should be reported as if they were the primary government's own special revenue funds. This is because the primary government should report only one general fund.
120
Joint Venture
A contractual arrangement where two or more participants agree to carry out a common activity. with each sharing in both its risks and rewards.
121
Related Organization
An entity that satisfies the criterion of financial accountability (that is, the primary government appoints a voting majority of its governing board) but neither of the other two criteria (that is, the primary government cannot impose its will on the organization and there is no potential for benefits/burdens on the primary government).
A related organization does NOT qualify as a component unit. Nevertheless, GASB 14 requires the primary government to describe any related organizations and the nature of their relationship.
122
What are all of the Basic Financial Statements?
GOVERNMENT-WIDE
- Statement of Net Position
- Statement of Activities
FUNDS
Governmental Funds
- Balance Sheet
- Statement of Revenues, Expenditures, and Changes in Fund Balances
Proprietary Funds
- Balance Sheet
- Statement of Revenues, Expenditures, in Changes in Fund Balances
- Statement of Cash Flows
Fiduciary Funds
- Statement of Fiduciary Net Assets
- Statement of Changes in Fiduciary Net Assets
123
True or False: The concept of "Major Funds" does not apply to fiduciary funds.
True. Fiduciary fund statements present all fiduciary funds aggregated info columns by each fund type: pension (and other employee health benefit) trust funds, investment trust funds, private purpose trusts, and custodial funds.
124
What is in the statistical section?
- Financial trends
- Revenue capacity
- Debt capacity
- Demographic and economic statistics
- Operating data
125
Affiliated Organization
An affiliated organization is one where the government may be closely tied to an entity that is not a component unit or a related organization, and the primary government does not appoint a majority of its governing boards, and it is not fiscally dependent on the primary government.
126
What is the AICPA? What does it do?
American Institute of Certified Public Accountants is a professional organization for CPAs that is responsible for establishing auditing and related professional standards.
127
Control Account
A GL account containing only summary amounts. The details are in separate subsidiary ledgers.
128
Full Faith and Credit
A government's pledge, usually incorporated into bond indentures, to back a bond issue with its full taxing authority.
129
Due To/Due From Other Funds
Current portion of interfund loans.
130
Advances To/From Other Funds
Non-current portion of interfund loans.
131
What is the Cash Flow Statement Direct Method?
What does it start with? What does it reconcile to?
Direct method shows cash flows based on source or use.
Starts with income and reconciles to cash.
132
GASB 34
Basic Financial Statements — and Management’s Discussion and Analysis — for State and Local Governments
133
GASB 9
Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting
134
GASB 68
Accounting and Financial Reporting for Pensions
135
GASB 72
Fair Value Measurement and Application
136
GASB 75
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (OPEB)
137
GASB 84
Fiduciary Activities
138
GASB 90
Majority Equity Interests – an amendment of GASB Statements No. 14 and No. 61
139
GASB 14
The Financial Reporting Entity
140
GASB 63
Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position
