Exam 1 review Government non profit

Fund types and categories

governmental, proprietary, fiduciary

modified accrual

focuses on current financial resources that occurred within a year.

General fund

Day to day operations

special revenue

restricted/ committed for specific purpose

capital projects

construction of major capital assets

debt service

principal and interest on long term debt

permanent

earnings only, principal preserved

proprietary

full accrual basis

enterprise

services to external users for fees, water, sewer, transits, parking, airport

internal service

services to internal departments

Fiduciary

Full accrual basis, held in trust for others

pension trust

employee retirement systems

investment trust

external pool participants

private purpose trust

benefits private individuals

custodial

Pure pass through

Modified accrual is only used by

governmental funds only

Capital assets not recorded as assets but as

expenditures

Full Accrual uses

government wide statements

Buy a 50,000 cash truck (governmental fund)

Dr- expenditures - capital outlay 50,000

Cr- cash 50,000

Year-end depreciation (full accural)

Dr - Depreciation expense 5000

Cr Accum. depreciation 5000

Issue $1M bond at par

Dr Cash 1,000,000

Cr. other financing sources 1,000,000

Budget is

recorded in the books at the start of the year

Appropriations

what the government expects to spend

If estimated inflows > outflows

Credit budgetary Fund balance

If estimated inflows < outflows

Dr budgetary Fund balance

Encumbrance

a reservation of funds for a future obligation, such as a purchase order, contract, or payroll commitment, before the actual payment is made.

derived tax revenues

tax based on underlying transaction (sales tax and income tax)

Imposed non exchange

Tax assessed by government (property tax, fines)

Government mandated

one government requires another to do something and pays for it

voluntary non exchange

grants, donations (provider chooses to give)