Fund Fund Types Basis of Measureme Fund-basis Financial Capital

Category Accounti nt Focus Statements Assets/ Long-

ng term
Liabilities
Fiduciary • Private- Accrual Economics • Statement of Fiduciary Trust Funds
Purpose Trust Resources Net Assets only
• Investment • Statements of
Trust Changes in Fiduciary
• Pension Trust Net Assets
• Agency
Proprietary • Internal Accrual Economic • Statement of Net Yes
Service Resources Assets
• Enterprise • Statement of
Revenues, Expenses,
and Changes in Net
Assets
• Statement of Cash
Flows
Governmen • General Modified Current • Balance Sheet No
tal • Special Accrual Financial • Statement of
Revenue Resources Revenues,
• Capital Project Expenditures, and
• Permanent Changes in Fund
• Debt Service Balances
Governmen • Proprietary Accrual Economic • Statement of Net Yes
tal Wide • Governmental Resources Assets
Statements • Statement of Activities
GAAP hierarchy

GAAP hierarchy
Nongovernmental FASB AICPA NACUBO
 Entities
State and Local GASB AICPA
Governments
Federal GAAP FASAB AICPA
Hierarchy
 CAFR

 Management’s Discussion and Analysis (MD&A)

 Basic Financial Financial Statements

 Government-wide Financial Statements

• Statement of Net Assets

• Statement of Activities

 Fund Basis Financial Statements

• Governmental Type Funds

♦ Balance Sheet

♦ Statement of Revenues, Expenditures and Changes in Fund Balances

♦ Reconciliation of governmental statements to government-wide statements

• Proprietary Funds

♦ Statement of Net Assets

♦ Statement of Revenues, Expenses, and Changes in Net Assets

 ♦ Statement of Cash Flows

• Fiduciary Funds

♦ Statement of Fiduciary Net Assets

♦ Statement of Changes in Fiduciary Net Assets

 Notes to the Finanical Statements

 Required Supplementary Information (Other than MD&A)

 Information about infrastructure assets using the modified approach

• If you are reporting infrastructure assets using a modified approach. Government must present
a schedule of the assessed condition of infrastructure assets and a schedule comparing the
estimated cost to maintain infrastructure assets with the amounts actually expended.

 Budgetary comparison schedule

• Required of any fund that has a legally adopted budget. Compares the original budget, the
final appropriated budget, and the actual results computed on the same basis as the budget.

 Schedule of funding progress of pension plans

 Schedule of employer contributions of pension plans

 Schedule required for external financing pools

Major Fund: Total assets, liabilities, revenues, or expenditures are 10% of the total for the governmental
funds category, and 5% of the total of the governmental and enterprise categories combined.
Budgetary Accounts: Estimated Revenues Control (Debit), Appropriations Control (Credit), and Estimated
Other Financing Sources/Uses (Debit/Credit)

Reserve for Encumbrances is an equity account with a debit balance.

Expenditure is a term used for costs and expenses in governmental accounting.

Property tax revenues are recorded by a government when “measureable and available.” “Available”
means “collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period.”

Special Revenues funds are resources that are legally restricted for current purposes, such as
intergovernmental grants and for funds set aside in formal action by the governing body.

Regular bond: the total principal of an issue is repayable in a specified number of equal
installments over the life of the issue.

Deferred serial bonds: if the first installment is delayed for a period of more than one year after
the date of the issue, but thereafter installments fall due on a regular basis

Annuity: annual principal repayments are scheduled to increase each year by approximately the
same amount that interest payments decrease.

Irregular: any pattern of repayment that does not fit the other three categories.

Collections: collections are to be expensed if not capitalized, and recognized as revenues

Converting fund statements to government wide statements:

• Recording non-current assets and liabilities

• Transfers are eliminated

• Payments on long-term debt

• Depreciation

Statement of Cash Flows

Governmental Not for profit
• Direct method • Direct or Indirect method
• 4 categories: Operating, noncapital financing, • 3 categories
capital and related financing, and investing •
activities
• Operating includes operating expenses and
quasi-external transactions
• Noncapital financing include proceeds and
repayments of debt not related to capital
outlay, grants received from and paid to other
governments, interest paid
• Capital and related financing activities include
proceeds and repayment of debt related to
capital acquisition, interest related to capital
outlay
• Investing activities include cash used to
acquire investments
• Reconciliation