Government-wide Financial Statements

Program and General Revenue

Classification
GASB 34 requires the government-wide statement of activities
to report all changes in a governments net position. The
revenue classification in the government-wide statement of
activities differs from the fund operating statement in that
revenues are classified by purpose rather than by type of
revenue.

Additional coding roll-ups in USAS are used to classify revenue

by purpose and type for each statement. Most of the
revenue COBJs only have one purpose; however, a few
revenue COBJsby type cover more than one purpose.
Additional COBJs were established to properly classify the
overlapping revenue purpose.
The GWFS GAAP SOURCE/OBJECT field on
the USASComptroller Object Profile (D10) screen identifies
how the revenue activity appears on the government-wide
statement of activities.

GASB 34 requires resource inflows reported on the GWFS to

be classified as:

Program revenue
o Charges for services
o Program-specific operating grants and
contributions
o Program-specific capital grants and contributions
General revenues
Non program-related capital contributions
Contributions to permanent and term endowments
Contributions to permanent fund principal
Transfers
Special items
Extraordinary items

There are four basic sources of revenue that fall under program
or general revenue.
Revenue
Type Revenue Source Classification

A Those who purchase, use Always program

or directly benefit revenue
from the programs
goods, services or
privileges

B Parties outside the Program revenue

reporting if restricted to
governments a specific
 Revenue
Type Revenue Source Classification

citizenry (such as program; general

other governments, revenue if
nongovernmental unrestricted
entities or
individuals)

C All the reporting Always general

governments revenue, even if
taxpayers (includes restricted
all taxpayers
regardless of whether
they benefit from a
particular program)

D The governmental Usually general

entity itself (such as revenue, unless
through investing) restricted

Program Revenues
Program revenues either derive directly from the program or
from parties outside the reporting governments taxpayers or
citizenry. These revenues reduce the net cost of the function to
be financed from the governments general revenues. The
statement of activities separates the three categories of
program revenues into:

Charges for services

Program-specific operating grants and contributions
Program-specific capital grants and contributions

When identifying the function that pertains to program revenue,

the determining factor for charges for services is the
function that generates the revenue. For grants and
contributions, the determining factor is the function to which
the revenues are restricted.

Charges for Services

Charges for services is the term used for a broad category of
program revenues generated from charges to customers,
applicants or others who purchase, use or directly benefit from
the goods, services or privileges provided or are otherwise
directly affected by the services.

This category of revenues includes:

 Fees charged for privileges
Payments for goods and services:

o From other governments or individuals outside

the reporting entity
o Between governmental, fiduciary and proprietary
fund types
Licenses
Permits
Lease or rental income
Operating special assessments (such as street cleaning or
special street lighting) and any other amounts charged to
service recipients
Fines and forfeitures resulting from direct charges to those
who are otherwise directly affected by a program or
service even though they receive no benefit

Program-Specific Grants and Contributions

Included in this category of revenues are those resulting from
mandatory and voluntary non-exchange transactions with other
governments, organizations or individuals that are restricted for
use in specific programs. These revenues reduce the net
expense of the related program to the reporting government
and are designated as either:

Operating (multi-purpose) grants that include grants and

contributions restricted to a program but may be used for
either operating expenses or capital assets.
Capital grants and contributions that may only be used for
capital purposes (in other words to purchase, construct or
renovate capital assets associated with a specific
program).

Note: Multi-purpose grants that do not provide specific

identification of programs and amounts are reported as general
revenues.

Earnings on Investments
Report earnings on endowments or permanent fund
investments as program revenues (operating grants and
contributions) if the earnings are restricted to a program or
programs specifically identified in the endowment or permanent
fund agreement or contract. When earnings on the invested
accumulated resources of a program are legally restricted for
use by such program, reduce the net cost financed by the
governments general revenue and report the investment
earnings as program revenues. Similarly, earnings on
investments not held by permanent funds may also be legally
restricted to certain functions or programs and are reported as
program revenues.

Note: Earnings that finance general fund programs or

general operating expenses are not reported as program
revenue.
General Revenues
All revenues except those required to be reported as program
revenues are general revenues. Examples of general revenue
include:

All taxes, even those levied for a specific purpose

All other non-tax revenues that do not meet the criteria for
classification as program revenues including:

o Interest not restricted to a specific program

o Grants and contributions not restricted to a
specific program
o Royalties not restricted to a specific program

General revenues are reported after the net (expense) revenue

of the governments functions.

The following types of financing sources from governmental

and business-type activities are reported in the same manner
as general revenues but are reported separately at the bottom
of the statement of activities to determine the change in net
position for the reporting period:

Non program-related capital contributions

Contributions to permanent and term endowments
Contributions to permanent fund principal
Special and extraordinary items
Transfers