Module 2 Flashcards
(16 cards)
What are the five classifications for fund balance information under GASB Statement No. 54?
Nonspendable, Unassigned, Assigned, Committed, and Restricted
What is included in nonspendable fund balances?
Amounts that cannot be spent because they are either not in spendable form or are required to remain intact. Examples: inventory, prepaid expenses, principal of an endowment required to be kept intact
What is included in restricted fund balances?
Amounts constrained to specific purposes by their providers, through constitutional provisions, or by enabling legislation
What is included in committed fund balances?
Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority
What is included in assigned fund balances?
Amounts that are neither restricted nor committed but which the government intends to use for specific purposes
What is included in unassigned fund balances?
All amounts that have not been assigned to the other four fund balance classifications. This residual amount is also referred to as the general fund
What are governmental funds?
Governmental funds are maintained to account for governments’ operating and financing activities and financed primarily through taxes
What are proprietary funds?
Proprietary funds are used to account for business-type activities and are often funded through user charges (ex: utility company)
What are fiduciary funds?
Fiduciary funds are used to account for resources held by government in a trust or agency capacity that are intended to benefit parties other than the government itself
Name funds typically classified as governmental funds?
General fund, Special revenue funds, Debt service funds, Capital projects funds, Permanent funds
Name funds typically classified as proprietary funds?
Enterprise funds, Internal service funds
Name funds typically classified as fiduciary funds?
Trust funds, Agency funds
What is a special revenue fund used for?
It is used to account for revenues and expenditures that are restricted or committed in nature, but are not related to debt service or capital projects
What is a capital project fund used for?
It is used to account for resources that are restricted, committed, or assigned for capital outlays (ex: buildings, roads, etc.)
What is a trust fund (fiduciary fund) used for?
It is used to account for assets that the government holds as a trustee for the benefit of parties other than the government itself (ex: pension plans for government employees)
What is an agency fund used for?
An agency fund is used to collect, hold, and distribute tax revenues for other governmental agencies and typically has a shorter holding period than a trust fund
