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Defines the boundaries of a particular financial reporting unit by describing whose assets, liabilities, revenues, expenses, and equities are included in its financial report?
Reportiing Entity
Is the primary government aggregated for financial reporting purposes?
NO! It's disaggregated into seperate funds. Each has its own assets, liabilities, net assets, and inflows/outflows of resources.
a fiscal accounting entity with a self-balancing set of accounts recording cash and other financial resources together with all related liabilities and residual equitites or balances, and changes therein, which are segregated for the purpose of carrying on specific activites or attaining certain objectives in accordance with special regulations, restrictions or limitations.
FORMAL DEFINITION OF A FUND
_ _ _ _ _ have traditionally provided a basic control mechanism for ensuring compliance with legal restrictions on the use of government resources?
FUNDS
What are the three fund catergories?
  • Governmental
  • Proprietary
  • Fudiciary
State and local governments account for their basic type services in this type of fund? This fund accounts for the accumulation and spending of resources-primarily taxes and intergovernmental grants-that provide the public with day-to-day operating services such as police, fire, education, sanitation, parks and highway maintenance.
Governmental Type Funds
Expenditures are likely to be controlled by budgets proposed by the executive branch of government and legally adopted by the legislative branch in the form of ______________?
Appropriations
Type of fund used to account for governmental activities that operate in a manner similar to private sector businesses in the sense that they charge fees for their services and want to measure whether their revenues will cover their expenses/
Proprietary Type Funds
Type of fund used to account for resources they hold in a trust or agency capacity for others?
Fiduciary
This refers to what is being expressed and which resources are being measured in reporting an organization's financial financial performance and position?
Measurement Focus
_____ __ _________ is a timing concept that relates to when the assets, liablilites, revenues and expenses are recognized in financial statements?
Basis of Accounting
The need for an accounting system to take account of transactions and events that affect ALL the economic resources available to the activity is called?
Economic Resource Measurement Focus.
This applies to Fiduciary and proprietary type funds
Proprietary type funds use the modified accrual basis of accounting. True or False
False-it uses accrual
Fiduciary type funds uses the economic resource measurement focus and the accrual basis of accounting. True or False
True
The accounting system needs to provide data needed for managing the budget. Departmental Budget officers and the govern,ent's central budget office need to know the amount of financial resources available for current spending. This is referred to as _______ _________ ___________ focus.
Current financial measurement focus and is used for governmental type funds.
Governmental type funds use this basis of accounting?
Modified accrual. Used to record only those accruals that affect near-term financial resource inflows and outflows. Generally within 60 days after the accounting period ends.
In modified accrual, governments recognize property tax revenues when they are measurable and available? True or False
True
What are the 5 types of Governmental Funds?
  • General Fund (must have at least 1)
  • Special Revenue Fund
  • Debt Service Funds
  • Capital Project Funds
  • Permanent Funds
______________ is the cornerstone of all financial reporting in government
Accountability
What are the three characteristics of Accountability?

  • Interperiod equity

  • Budgetary and fiscal compliance

  • Service Efforts and Accomplishments IBS 

A government’s obligation to disclose whether current-year revenues were sufficient to pay for current-year benefits—or did current  citizens defer payments to future taxpayers.

Interperiod equity
Identify whether resources were obtained and used in accordance with entity’s legally adopted budget.  Should also demonstrate compliance with other finance-related legal or contractual requirements. 
Budgetary and fiscal compliance
Financial reporting should provide information to assist users in assessing the service efforts costs and accomplishments of the governmental entity.  Helps assess economy, efficiency and effectiveness and may help form a basis for voting or funding decisions
Service Efforts and Accomplishments
Basis of accounting where revenues are recognized when available and measurable; expenditures when incurred
Modified Accrual
Basis of Accounting where Revenues are recognized when earned; expenses recognized when incurred
Full Accrual
What is the accounting equation for governmental-type funds?
Assets=Liabilities + Fund Balance
There are 2 types of proprietary type funds that are called:
  • Internal Service Funds
  • Enterprise Funds
True or False?
True
Name the 4 Fidicuary Type Funds
Acronym PIPA

  • Pension Trust Fund

  • Investment Trust Fund

  • Private Prupose Trust Fund

  • Agency Fund

Assets found in the General fund balance sheet would be considered long term such as property, plant, and equipment, while liabilities would be long term such as pensions, bonds, and loans payable?
True or False?
False-All assets for the general fund will be current only. Long term liabilities are reported as "other financing resources" Long term assets and liabilities are reported on the Government wide aggregated financial statements.
The fund balance is the difference between ________ and ________ on the operating statement?
Revenues and expenses
Name the fund:

  • Only one per government
  • Most of general government operating activities are accounted for in this fund
  • This is the operating fund of the government.
  • General Activities of city government (ex. Fire, police, services)
General Fund
Name the fund:

  • Used when required by law or by policy to account for financial resources earmarked for a specified operating purpose
  • Accounting and budgeting usually identical to GF
  • Example: City of Orlando has 17 (3 are major funds)
    • –Gas Tax Fund: accounts for the receipt and disbursement of the Local Option Gas Tax.
    • Transportation Impact Fees Fund: accounts for the receipt and disbursement of transportation impact fees, used exclusively for transportation related capital projects (or related debt services).
    • The Utilities Services Tax Fund: accounts for the receipt of the Utilities Services taxes after the monthly release of lien (pledged to the Wastewater System) and annually makes a significant contribution to the General Fund
Special Revenue Funds
Name the fund:

  • Accounts for the accumulation of resources for paying principal and interest on long-term debt
  • Can be used to pay long-term liabilities such as installment purchase contracts and lease purchasing agreements
  • Funds should be used when legally mandated or when financial resources are being accumulated for principal and interest that comes due in the future
  • A single fund should be used for all general long term debt
Debt Service Funds
Name the fund:

  • Used to account for financial resources segregated to pay for  construction  and/or acquisition of  long-lived general capital assets, except those financed by Enterprise funds.
  • Ex Parks Initiative, Narcoosee Road Contstruction, Performing Arts Center construction, Public Safety construction
Capital Projects Funds (CPF)
Name the fund:
  • Used to account for resources provided by trust in which the earnings but not the principal must be used for public purposes; i.e. to benefit the government and its citizenry.
Permanent Fund
sources received from taxes, fees, and other sources.
Expendable funds
Government makes initial contribution but thereafter the fund is expected to pay its own way.
Non-expendable funds
Name the fund:
  • Used to account for activities in which goods or services are provided to other departments of the same government or to other governments for a charge on a cost reimbursement basis.
  • Examples include central stores, central computing, motor pools, and printing.
  • are reported as governmental activities in the government-wide statements because they primarily benefit the government. 
Internal service funds
Name the fund:

  • Used  to account for activities in which goods or services are provided to the general public for  a charge

  • Ex. include electric and water utilities, airports, parking garages, transportation systems, and liquor stores
  • are reported as business-type activities in the government-wide financial statements.
Enterprise Funds
Is accounting for proprietary funds reported essentially the same as those of for-profit entities including full accrual accounting? Are the capital assets and long-term liabilities accounted for in funds? Is depreciation expenses recorded? Are expenses used instead of expenditures?

Yes or No for all of these questions?
Yes
Name the fund type:
  • funds are used to account for assets held by a SLG in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. 

  • §Each trust is classified for accounting measurement purposes as either a governmental fund or a proprietary fund (ex. Employee Retirement funds, Private-purpose trusts, Investment trusts, Agency). 
Fiduciary Funds
Name the fund:
  • To account for financial resources in which the government (or other designated trustee) is acting in a trustee capacity for the employees of the government to provide retirement benefits. 
  • Uses business-type accounting practices.
Pension Trust Fund
Name the fund:
  • Used to account for external investment pools in which the assets are held for other (external) governments, along with funds of the sponsoring government.
  • The assets, liabilities, net assets, and changes in net assets corresponding to the equity of the external participants is reported in this fiduciary fund.
Investment Trust Fund
Name the fund:
  • To account for financial resources in which the government is acting in a trustee capacity for the benefit of  individuals, other organizations, or other governments (e.g., an endowment in which the principal amount must be kept intact)
  • Accounting is virtually identical to that for an enterprise fund.
Private-purpose Trust Funds
Name the fund:
  • To account for financial resources in which the government is acting in an agency capacity
  • Accounting is simple: assets = liabilities.
  • No revenue and expenditure accounts are used, nor is there a fund equity account
  • Examples are tax agency funds, certain special assessment funds, and pass-through agency funds
Agency Funds (often several)
What are the minimum requirements for general purpose external reporting include:
  • Management Discussion & Analysis
  • basic financial statements
  • Required Supplemental Information other than MD&A

What are the 5 components of the Fund Balance?
Acronym= AC Run
  • nonspendable
  • restricted
  • committed
  • assigned
  • unassigned
The fund balance is the difference between ________ and ________ on the balance sheet?
Assets and liabilities
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