| |
| |
Preface | |
| |
| |
| |
Governmental and Nonprofit Accounting: Environment and Characteristics | |
| |
| |
Learning Objectives | |
| |
| |
Characteristics and Types of G&NP Organizations | |
| |
| |
G&NP Sector Significance | |
| |
| |
The G&NP Environment | |
| |
| |
Objectives of G&NP Accounting and Financial Reporting | |
| |
| |
Authoritative Sources of G&NP Accounting Principles and Reporting Standards | |
| |
| |
Separate Principles Established | |
| |
| |
AICPA Audit Guides | |
| |
| |
The FASB | |
| |
| |
FASB-GASB Jurisdictions | |
| |
| |
"Government" Defined | |
| |
| |
The GASB | |
| |
| |
GAAP Hierarchies | |
| |
| |
Concepts and Objectives of SLG Accounting and Financial Reporting | |
| |
| |
Governmental-Type Activities | |
| |
| |
Financial Report Users | |
| |
| |
Financial Report Uses | |
| |
| |
Business-Type Activities | |
| |
| |
Users and Uses of Financial Reports | |
| |
| |
Financial Reporting Objectives | |
| |
| |
Characteristics of SLG Accounting and Financial Reporting | |
| |
| |
Fund Accounting | |
| |
| |
Budgets and Appropriations | |
| |
| |
Other Distinguishing Characteristics | |
| |
| |
Commercial Accounting Comparison | |
| |
| |
Concluding Comments | |
| |
| |
| |
Evolution of Accounting Principles and Standards-Prior to the GASB | |
| |
| |
Initial Evolution (1900-1933) | |
| |
| |
National Committees on Municipal and Governmental Accounting (1934-1974) | |
| |
| |
National Council on Governmental Accounting (1974-1984) | |
| |
| |
| |
State and Local Government Accounting Principles | |
| |
| |
Learning Objectives | |
| |
| |
Overview of the GASB Financial Reporting Model | |
| |
| |
The GASB Principles | |
| |
| |
Accounting System Capabilities | |
| |
| |
Fund Accounting | |
| |
| |
Transaction Analysis | |
| |
| |
Nonfund Accounts | |
| |
| |
MFBA | |
| |
| |
Classification and Terminology | |
| |
| |
Annual Financial Reporting | |
| |
| |
Concluding Comments | |
| |
| |
| |
Budgeting, Budgetary Accounting, and Budgetary Reporting | |
| |
| |
Learning Objectives | |
| |
| |
Budgetary Planning, Control, and Evaluation | |
| |
| |
Planning | |
| |
| |
Control | |
| |
| |
Evaluation | |
| |
| |
Basic Budgetary Terminology | |
| |
| |
Capital vs. Current Budgets | |
| |
| |
Tentative vs. Enacted Budgets | |
| |
| |
General vs. Special Budgets | |
| |
| |
Fixed vs. Flexible Budgets | |
| |
| |
Executive vs. Legislative Budgets | |
| |
| |
Budgetary Approaches and Emphases | |
| |
| |
The Budget as Information | |
| |
| |
Recommended Budgeting Practices | |
| |
| |
Illustrative Budget Comparison Statement | |
| |
| |
Budget Preparation | |
| |
| |
Overview | |
| |
| |
Preliminary Estimates | |
| |
| |
Preparing the Budget | |
| |
| |
Legislative Consideration and Action | |
| |
| |
Budget Execution | |
| |
| |
Budgetary Accounting Overview | |
| |
| |
General Ledger | |
| |
| |
Subsidiary Ledgers | |
| |
| |
Budgetary Reporting Overview | |
| |
| |
The Budgetary Basis | |
| |
| |
Interim Budgetary Statements | |
| |
| |
Annual Budgetary Comparisons | |
| |
| |
Concluding Comments | |
| |
| |
| |
Alternative Expenditure Budgeting Approaches | |
| |
| |
The Object-of-Expenditure Approach | |
| |
| |
The Performance Approach | |
| |
| |
The Program and Planning-Programming-Budgeting (PPB) Approaches | |
| |
| |
The Zero-Base Budgeting Approach | |
| |
| |
In Sum | |
| |
| |
Selecting an Appropriate Approach | |
| |
| |
| |
The General Fund and Special Revenue Funds | |
| |
| |
Learning Objectives | |
| |
| |
General Fund Accounting-Illustrative Example | |
| |
| |
Entries During 20X1 | |
| |
| |
Year-End Adjustments | |
| |
| |
Preclosing Trial Balances | |
| |
| |
Illustrative Example Worksheets | |
| |
| |
20X1 Closing Entries | |
| |
| |
Closing Entry Approaches | |
| |
| |
Reserve for Encumbrances | |
| |
| |
Budgetary Fund Balance | |
| |
| |
Postclosing Trial Balance | |
| |
| |
Balance Sheets | |
| |
| |
Interim Balance Sheet | |
| |
| |
Year-End Balance Sheet | |
| |
| |
Fund Balance | |
| |
| |
Fund Balance Reserves | |
| |
| |
Unreserved Fund Balance | |
| |
| |
Fund Balance Designations | |
| |
| |
Interfund Receivables and Payables | |
| |
| |
Capital Assets and Long-Term Liabilities | |
| |
| |
Statement of Revenues, Expenditures, and Changes in Fund Balances | |
| |
| |
Total Fund Balance | |
| |
| |
Restatements | |
| |
| |
Extraordinary and Special Items | |
| |
| |
Budget Comparison Schedule or Statement of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual | |
| |
| |
Entries During 20X2 | |
| |
| |
Combining Special Revenue Fund Statements | |
| |
| |
Alternative Account Structure and Entries | |
| |
| |
Concluding Comments | |
| |
| |
| |
General Ledger Worksheet and Subsidiary Ledgers | |
| |
| |
| |
Revenue Accounting-Governmental Funds | |
| |
| |
Learning Objectives | |
| |
| |
Revenue Definition and Recognition | |
| |
| |
Classification of Revenue Accounts | |
| |
| |
General Fund Revenues | |
| |
| |
Other Governmental Funds Revenues | |
| |
| |
Governmental Unit Revenues | |
| |
| |
Taxes | |
| |
| |
Taxpayer-Assessed Taxes | |
| |
| |
Property Taxes | |
| |
| |
Property Tax Statements/Schedules | |
| |
| |
Licenses and Permits | |
| |
| |
Intergovernmental Revenues | |
| |
| |
Intergovernmental Revenue Classifications | |
| |
| |
Intergovernmental Revenue Accounting | |
| |
| |
Charges for Services | |
| |
| |
Interfund Services vs. Reimbursements | |
| |
| |
Charges for Services | |
| |
| |
Fines and Forfeits | |
| |
| |
Miscellaneous Revenues | |
| |
| |
Investment Earnings | |
| |
| |
Capital Asset Sales/Losses | |
| |
| |
PILOTs | |
| |
| |
Escheats | |
| |
| |
Private Contributions | |
| |
| |
Revenue Budget Revisions | |
| |
| |
Revenue Reporting: GAAP vs. Budgetary | |
| |
| |
Changes in Accounting Principles | |
| |
| |
New GASB Standards | |
| |
| |
Prospective Application | |
| |
| |
Retroactive Application | |
| |
| |
Error Correction | |
| |
| |
Concluding Comments | |
| |
| |
| |
Expenditure Accounting-Governmental Funds | |
| |
| |
Learning Objectives | |
| |
| |
Expenditure Definition and Recognition | |
| |
| |
Capital Outlay Expenditures | |
| |
| |
Debt Service Expenditures | |
| |
| |
Intergovernmental Expenditures | |
| |
| |
Current Operating Expenditures | |
| |
| |
Inventories and Prepayments | |
| |
| |
Expenditure Accounting Controls | |
| |
| |
Expenditure Accounting Procedures | |
| |
| |
Personal Services | |
| |
| |
Materials and Supplies | |
| |
| |
Other Services and Charges | |
| |
| |
Classification of Expenditures | |
| |
| |
Accounting for Allocations and Allotments | |
| |
| |
Appropriations Revisions | |
| |
| |
Adjusting Entries | |
| |
| |
Encumbrances | |
| |
| |
Debt Service | |
| |
| |
Claims and Judgments | |
| |
| |
Compensated Absences | |
| |
| |
Pension/OPEB Plan Contributions | |
| |
| |
Expenditure Reporting: GAAP vs. Budgetary | |
| |
| |
Changes in Accounting Principles | |
| |
| |
Alternative Principles | |
| |
| |
New GASB Standards | |
| |
| |
Error Correction | |
| |
| |
Concluding Comments | |
| |
| |
| |
Classification of Expenditures | |
| |
| |
Classification by Function or Program | |
| |
| |
Classification by Organization Unit | |
| |
| |
Classification by Activity | |
| |
| |
Classification by Character | |
| |
| |
Classification by Object Classes | |
| |
| |
| |
Capital Projects Funds | |
| |
| |
Learning Objectives | |
| |
| |
Capital Projects Fund Operations and Accounting Standards | |
| |
| |
CPF Financial Resources | |
| |
| |
Number of Funds | |
| |
| |
CPF Life Cycle | |
| |
| |
The Budget | |
| |
| |
General-Subsidiary Ledgers | |
| |
| |
Interim Financing | |
| |
| |
Project Costs | |
| |
| |
Intergovernmental Revenues | |
| |
| |
Recording Bond Issues | |
| |
| |
Capital Projects Fund-Case Illustration Begun, 20X1 | |
| |
| |
General Ledger Entries | |
| |
| |
Budgetary Entry | |
| |
| |
Transaction/Event Entries | |
| |
| |
General Ledger Worksheet(s) | |
| |
| |
Preclosing Trial Balance | |
| |
| |
Closing Entries | |
| |
| |
Financial Statements | |
| |
| |
Capital Projects Fund-Case Illustration Concluded, 20X2 | |
| |
| |
20X1 Accounts Closed | |
| |
| |
Case Illustration Assumptions | |
| |
| |
20X2 Entries | |
| |
| |
General Ledger Worksheet | |
| |
| |
20X2 Financial Statements | |
| |
| |
Other Capital Projects Fund Operations, Accounting, and Reporting Matters | |
| |
| |
Bond Anticipation Notes (BANs) | |
| |
| |
Investments and Arbitrage | |
| |
| |
Remaining Fund Balance | |
| |
| |
Reporting Multiple Projects | |
| |
| |
Combining CPF Statements | |
| |
| |
Concluding Comments | |
| |
| |
| |
General Ledger Worksheet and Subsidiary Ledgers | |
| |
| |
| |
Debt Service Funds | |
| |
| |
Learning Objectives | |
| |
| |
Debt Service Fund Environment, Financing, and Expenditure Recognition | |
| |
| |
Long-Term Liabilities | |
| |
| |
Fixed vs. Variable Rates | |
| |
| |
Debt Service Payments | |
| |
| |
Bonds and Fiscal Agents | |
| |
| |
Required DSF Reserves | |
| |
| |
Bond Ratings | |
| |
| |
Bond Insurance | |
| |
| |
Sources of Financing | |
| |
| |
DSF Investments | |
| |
| |
DSF Expenditure Recognition | |
| |
| |
Debt Service Fund for a Serial Bond Issue: Case Illustration | |
| |
| |
Illustrative Entries | |
| |
| |
Financial Statements | |
| |
| |
Special Assessment Debt Service Funds | |
| |
| |
Illustrative Entries | |
| |
| |
Illustrative Financial Statements | |
| |
| |
Other Conventional Debt Service Fund Considerations | |
| |
| |
Nonaccrual of Interest | |
| |
| |
Combining Balance Sheet | |
| |
| |
Combining Operating Statement | |
| |
| |
Multiple Bond Issues | |
| |
| |
Debt Service Fund for a Term Bond Issue | |
| |
| |
Sinking Fund Requirements | |
| |
| |
Debt Service Funds for Deep Discount Issues | |
| |
| |
Refundings | |
| |
| |
Reasons for Refundings | |
| |
| |
Refundings Defined | |
| |
| |
Defeasance of Debt | |
| |
| |
Debt Service Funds for Refundings | |
| |
| |
Current Refunding | |
| |
| |
Advance Refunding | |
| |
| |
Debt and Non-debt Financing | |
| |
| |
Reporting Refundings | |
| |
| |
Advance Refunding Disclosures | |
| |
| |
Concluding Comments | |
| |
| |
| |
General Capital Assets; General Long-Term Liabilities; Permanent Funds: Introduction to Interfund-GCA-GLTL Accounting | |
| |
| |
Learning Objectives | |
| |
| |
Overview of General Capital Assets and General Long-Term Liabilities Accounting Procedures | |
| |
| |
General Capital Assets | |
| |
| |
General Capital Assets Defined | |
| |
| |
Initial Valuation | |
| |
| |
Classification | |
| |
| |
Infrastructure Assets | |
| |
| |
Capitalization Policy | |
| |
| |
Property Records | |
| |
| |
Capital Assets Inventory | |
| |
| |
Additions, Betterments, and Renewals | |
| |
| |
Depreciation/Accumulated Depreciation | |
| |
| |
Updating GCA Accounts | |
| |
| |
Recording Depreciation | |
| |
| |
Sale, Replacement, or Retirement | |
| |
| |
Intragovernmental Transactions | |
| |
| |
Damage or Destruction | |
| |
| |
Impairment | |
| |
| |
Insurance Recoveries | |
| |
| |
Reporting and Disclosures | |
| |
| |
General Long-Term Liabilities | |
| |
| |
CPF-DSF-GLTL | |
| |
| |
Serial Debt | |
| |
| |
Special Assessment Debt | |
| |
| |
Other Government Liabilities | |
| |
| |
Interest-Related Adjustments | |
| |
| |
Defaulted Bonds | |
| |
| |
In-Substance Defeasance | |
| |
| |
GLTL Records | |
| |
| |
GLTL Reporting and Disclosures | |
| |
| |
Permanent Funds | |
| |
| |
Introduction to Interfund-GCA-GLTL Accounting | |
| |
| |
Concluding Comments | |
| |
| |
| |
Enterprise Funds | |
| |
| |
Learning Objectives | |
| |
| |
Common Characteristics and Principles of Proprietary Funds | |
| |
| |
Accounting Equation | |
| |
| |
Accounting Principles | |
| |
| |
Financial Statements | |
| |
| |
Enterprise Funds | |
| |
| |
Enterprise Funds Defined | |
| |
| |
Specific EF Topics | |
| |
| |
EF Accounting Illustrated | |
| |
| |
Combining Enterprise Fund Financial Statements | |
| |
| |
Concluding Comments | |
| |
| |
| |
Internal Service Funds | |
| |
| |
Learning Objectives | |
| |
| |
Overview of Accounting Principles | |
| |
| |
Initial Establishment | |
| |
| |
Pricing Policies | |
| |
| |
Pricing Methods | |
| |
| |
Relation to Budget | |
| |
| |
Financial Statements | |
| |
| |
Internal Service Fund Accounting Illustrated | |
| |
| |
Automotive Equipment Unit | |
| |
| |
Central Stores Fund | |
| |
| |
Self-Insurance Fund | |
| |
| |
Disposition of Increase or Decrease in Net Assets | |
| |
| |
Changes in Net Asset Balance | |
| |
| |
Dissolution of an Internal Service Fund | |
| |
| |
Combining Internal Service Fund Financial Statements | |
| |
| |
Concluding Comments | |
| |
| |
| |
Trust and Agency (Fiduciary) Funds: Summary of Interfund-GCA-GLTL Accounting | |
| |
| |
Learning Objectives | |
| |
| |
The Accountability Focus | |
| |
| |
Agency Funds | |
| |
| |
Simpler Agency Funds | |
| |
| |
Tax Agency Funds | |
| |
| |
Special Assessment Agency Funds | |
| |
| |
Trust Funds | |
| |
| |
Private-Purpose Trusts | |
| |
| |
Investment Trusts | |
| |
| |
Pension Trusts | |
| |
| |
Combining Trust and Agency Fund Financial Statements | |
| |
| |
Additional Interfund-General Capital Asset-General Long-Term Liability Accounting Illustrations | |
| |
| |
Concluding Comments | |
| |
| |
| |
Financial Reporting: The Basic Financial Statements and Required Supplementary Information | |
| |
| |
Learning Objectives | |
| |
| |
Basic Financial Statements Overview | |
| |
| |
Government-Wide Financial Statements | |
| |
| |
Statement of Net Assets | |
| |
| |
Statement of Activities | |
| |
| |
Measurement Focus | |
| |
| |
Reporting Expenses | |
| |
| |
Program vs. General Revenues | |
| |
| |
Internal Service Funds | |
| |
| |
Infrastructure Capital Assets | |
| |
| |
Fund Financial Statements | |
| |
| |
Major Fund Reporting | |
| |
| |
Fund-Based Financial Statements | |
| |
| |
Note Disclosures | |
| |
| |
Required Supplementary Information | |
| |
| |
Management's Discussion and Analysis | |
| |
| |
Other RSI | |
| |
| |
Special Purpose Governments | |
| |
| |
Concluding Comments | |
| |
| |
| |
Illustrative Management's Discussion & Analysis | |
| |
| |
State of Florida Management's Discussion and Analysis | |
| |
| |
| |
Financial Reporting: Deriving Government-Wide Financial Statements and Required Reconciliations | |
| |
| |
Learning Objectives | |
| |
| |
Deriving Government-Wide Governmental Activities Data | |
| |
| |
Deriving Government-Wide Financial Statement Data for Governmental Activities-A Worksheet-Based Illustration | |
| |
| |
GCA-GLTL Related Adjustments | |
| |
| |
Basis of Accounting Adjustments | |
| |
| |
Eliminating Interfund Transactions | |
| |
| |
Completing the Worksheet | |
| |
| |
Government-Wide Financial Statements | |
| |
| |
Required Reconciliations | |
| |
| |
Additional Worksheet Adjustments | |
| |
| |
Incorporating Internal Service Funds | |
| |
| |
Deriving Government-Wide Business-Type Activities Data | |
| |
| |
Concluding Comments | |
| |
| |
| |
Financial Reporting: The Comprehensive Annual Financial Report and the Financial Reporting Entity | |
| |
| |
Learning Objectives | |
| |
| |
The Comprehensive Annual Financial Report | |
| |
| |
The Introductory Section | |
| |
| |
The Financial Section | |
| |
| |
The Statistical Section | |
| |
| |
Supplemental and Special Purpose Reporting | |
| |
| |
Financial Reporting-Complex Entity Structure | |
| |
| |
Reporting Entity Definition | |
| |
| |
Reporting Entity Disclosures | |
| |
| |
Integrating Component Units into the Reporting Entity | |
| |
| |
Blending | |
| |
| |
Discrete Presentation | |
| |
| |
Other Issues | |
| |
| |
Separate Issuance of Primary Government Financial Statements | |
| |
| |
Related Organizations, Joint Ventures, and Jointly Governed Organizations | |
| |
| |
Concluding Comments | |
| |
| |
| |
Non-SLG Not-for-Profit Organizations: SFAS 116 and 117 Approach | |
| |
| |
Learning Objectives | |
| |
| |
Classification of Organizations | |
| |
| |
Voluntary Health and Welfare Organizations | |
| |
| |
Other Not-for-Profit Organizations | |
| |
| |
Classes of Net Assets | |
| |
| |
Non-GAAP Accounting and Reporting Requirements | |
| |
| |
Basis of Accounting | |
| |
| |
SFAS 117 Financial Statements | |
| |
| |
Balance Sheet | |
| |
| |
Statement of Activities | |
| |
| |
Statement of Cash Flows | |
| |
| |
Statement of Functional Expenses | |
| |
| |
Nongovernment VHWO and ONPO Accounting and Reporting Illustration | |
| |
| |
Transactions and Entries | |
| |
| |
Illustrative Financial Statements | |
| |
| |
Concluding Comments | |
| |
| |
| |
Accounting for Colleges and Universities | |
| |
| |
Learning Objectives | |
| |
| |
Classification as "Engaged Only in Business-Type Activities" | |
| |
| |
GAAP Reporting Requirements | |
| |
| |
Balance Sheet | |
| |
| |
Operating Statement | |
| |
| |
Statement of Cash Flows | |
| |
| |
Case Illustration-A Government University | |
| |
| |
Other Resources | |
| |
| |
Annuity and Life Income Gifts | |
| |
| |
Annuity Gifts | |
| |
| |
Life Income Gifts | |
| |
| |
Colleges and Universities Engaged in Both Governmental and Business-Type Activities | |
| |
| |
Nongovernment Not-for-Profit University Reporting | |
| |
| |
Concluding Comments | |
| |
| |
| |
Accounting for Health Care Organizations | |
| |
| |
Learning Objectives | |
| |
| |
Funds-Government Hospitals | |
| |
| |
Basic Principles | |
| |
| |
Unique Measurement and Display Features | |
| |
| |
Distinguishing Primary Activities | |
| |
| |
Classes of Revenues | |
| |
| |
Gains | |
| |
| |
Donations | |
| |
| |
Expense Classification | |
| |
| |
Restricted Assets | |
| |
| |
Property, Plant, and Equipment | |
| |
| |
Illustrative Case | |
| |
| |
Summary of Transactions and Events | |
| |
| |
Financial Statements | |
| |
| |
Balance Sheets | |
| |
| |
Operating Statement | |
| |
| |
Statement of Cash Flows | |
| |
| |
Nongovernment Not-for-Profit Hospital Reporting | |
| |
| |
Concluding Comments | |
| |
| |
| |
Federal Government Accounting | |
| |
| |
Learning Objectives | |
| |
| |
The Federal Financial Management Environment | |
| |
| |
Financial Accounting Responsibilities | |
| |
| |
Overview | |
| |
| |
The Budgetary Process | |
| |
| |
The Budget Cycle | |
| |
| |
Exceeding Budget Authority | |
| |
| |
Accounting Principles and Standards for Federal Agencies | |
| |
| |
The Federal Model | |
| |
| |
Standard General Ledger | |
| |
| |
Federal Fund Structure | |
| |
| |
Financial Reporting | |
| |
| |
Federal Agency Accounting and Reporting Illustrated | |
| |
| |
A Case Illustration | |
| |
| |
Maintaining Budgetary Control | |
| |
| |
Maintaining Proprietary Accounts | |
| |
| |
Other Transactions and Entries | |
| |
| |
Closing Entries | |
| |
| |
Reporting | |
| |
| |
Concluding Comments | |
| |
| |
| |
Auditing Governments and Not-for-Profit Organizations | |
| |
| |
Learning Objectives | |
| |
| |
Overview | |
| |
| |
What is an Audit? | |
| |
| |
Classifications of Audits | |
| |
| |
Management's Representations | |
| |
| |
External Auditor Classifications | |
| |
| |
The Audit Contract | |
| |
| |
Auditing Standards | |
| |
| |
AICPA Auditing Standards | |
| |
| |
GAO Auditing Standards | |
| |
| |
GAGAS Summary | |
| |
| |
The Financial Audit | |
| |
| |
Auditing Standards | |
| |
| |
Audit Procedures | |
| |
| |
The Audit Report | |
| |
| |
The Single Audit | |
| |
| |
Purposes | |
| |
| |
Overview | |
| |
| |
Applicability | |
| |
| |
Definitions | |
| |
| |
Auditee Responsibilities | |
| |
| |
Auditor Responsibilities | |
| |
| |
Auditing Guidance | |
| |
| |
Major FFA Programs | |
| |
| |
Findings & Questioned Costs | |
| |
| |
Illegal Acts | |
| |
| |
Subrecipients | |
| |
| |
Auditor Reports-Single Audit | |
| |
| |
Auditee Reporting Responsibilities | |
| |
| |
Other Matters | |
| |
| |
Concluding Comments | |
| |
| |
| |
Glossary | |
| |
| |
| |
Data Collection Form for Reporting on Audits of States, Local Governments, and Nonprofit Organizations | |