高级会计学(第10版)教师手册Beams10e_IM_14.pdf

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1、 2009 Pearson Education,Inc.publishing as Prentice Hall 207 Chapter 19 ACCOUNTING FOR STATE AND LOCAL GOVERNMENTAL UNITS GOVERNMENTAL FUNDS Chapter Outline THE GENERAL FUND A The general fund(GF)is the entity that a government uses to account for all unrestricted resources except those to be account

2、ed for in a specific fund.There is only one general fund.B Formal budgetary accounting is required 1 The GASB Codification requires governments classify revenues by source(taxes,licenses)and expenditures by character class(current services,capital outlays)and purpose(general government,public safety

3、).2 The approved budget is recorded in the accounts of the general ledger as follows:Estimated revenues xxx Appropriations xxx Estimated other financing uses xxx Unreserved fund balance xxx 3 Details of planned revenues are recorded in a subsidiary revenue ledger and appropriation details are record

4、ed in a subsidiary expenditure ledger.4 Compliance with the approved budget is required.A statement of revenues,expenditures,and changes in fund balance-budget and actual is required to demonstrate compliance with the budget.5 Some governments require revenues exceed appropriations,resulting in a ba

5、lanced budget.C Revenue transactions follow the modified accrual basis of accounting and are recognized in the period they become measurable and available.1 The 60 day rule helps establish availability.2009 Pearson Education,Inc.publishing as Prentice Hall 208 2 Uncollectible taxes are recorded as r

6、evenue adjustments,not expenditures.3 Derived tax revenues,such as sales and income taxes,are recognized when the underlying transaction(e.g.,the sale)takes place.4 Revenues from other sources such as,licenses,permits,and fines are typically recorded when cash is received.D Expenditures are recorded

7、 when the related liability is incurred.E The law limits expenditures to those for which appropriations have been made.Encumbrance accounting recognizes commitments made for goods on order and for unperformed contracts to help prevent overspending.F Fixed assets do not appear as assets in the govern

8、mental fund statements.Instead they are capitalized and included in the government-wide financial statement.1 Thus,fixed assets are one of the reconciling items between the two statements.G Supply acquisitions may be treated as expenditures either when purchased or when used as long as significant a

9、mounts of inventory are reported on the balance sheet.H Lease agreements fall under the provisions of FASB Statement No.13.A capital lease is recorded as an expenditure and an other financing source as if long term debt had been issued.I Intrafund transfers are classified as reciprocal if the fund e

10、xpects repayment or nonreciprocal if the flow of assets does not require repayment.SPECIAL REVENUE FUNDS A A special revenue fund(SRF)is the fund entity that a government uses to account for specific revenue sources(other than resources from permanent funds,major capital projects,or debt service on

11、general long-term debt)that are restricted by law or administrative action to expenditures for a specific purpose.1 This demonstrates compliance with legal or administrative requirements.2 The accounting in an SRF is similar to the accounting in a GF.B Grant funds restricted to a specific purpose ar

12、e often accounted for in a SRF.2009 Pearson Education,Inc.publishing as Prentice Hall 209 1 Grant revenues can be recognized as such when all eligibility requirements set forth in the grant have been met,if the funds are available to meet current liabilities.2 If grant funds are disbursed to the gov

13、ernment prior to the eligibility requirements having been met,they must be accounted for as deferred revenues.PERMANENT FUNDS A Permanent funds(PF)is a new governmental fund category created by GASB 34 that is used to account for nonexpendable resources set aside for support of a governments program

14、s or citizenry.1 Governments use a PF to account for contributions for which the grantor specifies that a principal amount must be maintained but for which the interest accumulation or asset appreciation or both may be used for a specific purpose.2 Revenues will come from interest and asset apprecia

15、tion.3 Expenditures will be recorded as incurred.CAPITAL PROJECTS FUNDS A Capital projects funds(CPF)are governmental funds used to account for working capital for the acquisition or construction of major capital facilities other than those financed by trust and proprietary funds.1 A CPF is created

16、when it is legally authorized and it exists for the life of the project.2 A CPF uses modified accrual accounting and revenue and expenditure accounts.Formal budgetary accounting need not be used unless several projects are financed through the same fund,or the governmental unit is the primary contra

17、ctor for the facilities.3 A CPF is not required for the acquisition of minor general fixed assets.These acquisitions are accounted for in the general fund or a special revenue fund.4 Typical financing sources of a CPF include bond issue proceeds,grants,shared revenues,transfers from other funds,and

18、contributions from property owners(for special assessment projects).2009 Pearson Education,Inc.publishing as Prentice Hall 210 B Accounting for a CPF 1 When the fund is created,a memorandum entry is made in the fund for its authorization.2 Interfund transfers are not revenues and expenditures of the

19、 funds involved.They are nonreciprocal,nonexchange transactions and are classified in the financial statements as“other financing sources or uses.”3 Bond issue proceeds are recognized in a CPF when the bonds are sold.Bond proceeds are classified in the financial statements as“other financing sources

20、.”The proceeds from special assessment debt is described as contributions from property owners rather than bond proceeds.a When bonds are issued at a premium,the full amount of the proceeds is recorded in the CPF and the premium is transferred to the debt service fund.The premium cannot be used as a

21、n addition to the project authorization.b When bonds are issued at a discount,the proceeds are recorded in the CPF and the discount,in effect,reduces the project authorization unless additional resources are provided for the project from other sources.c Authorized but unissued bonds at an interim st

22、atement date should not be accrued.The unissued bonds are disclosed in notes to the financial statements.4 When a contract is awarded,the full amount for the contract is encumbered.Construction contracts often require that a retained percentage be withheld from progress payments until completion of

23、the project and final inspection 5 Under modified accrual accounting,intergovernmental revenue may be accrued in some circumstances if the commitment is firm.Restricted grants are recognized as revenues when all grant stipulations,including incurring expenditures for the qualified purpose,are met.SP

24、ECIAL ASSESSMENTS ACTIVITIES A Special assessments are tax levies on a limited group of property owners to finance public improvements that are expected to benefit those property owners.2009 Pearson Education,Inc.publishing as Prentice Hall 211 1 A special assessments project usually originates when

25、 property owners petition the governmental unit for an improvement such as construction of a sidewalk or paving a street.2 If the project is approved,the government obtains financing,makes the improvement,and levies the special assessments against the property owners.If the project will also benefit

26、 the general citizenry,the government may pay a portion of the cost.3 Often special assessment bonds are issued to pay the construction costs and the special assessments are collected in installments over the term of the special assessment bond issue.The interest charged on the unpaid special assess

27、ment balance is used to cover the interest on the bonds.4 Capital improvements related to special assessment projects are accounted for in a CPF.B Debt service on special assessment debt for which the governmental unit is obligated in some manner is reported in the governmental activities of the gov

28、ernment-wide statement of net assets.C Debt service on special assessment debt for which the governmental unit is not obligated in any way is accounted for in an agency fund.The obligation is disclosed only in notes to the financial statements.DEBT SERVICE FUNDS A Debt service funds(DSF)are governme

29、ntal funds that are used to account for the receipt of resources to be used for debt service,and the use of those resources to make principal and interest payments on general long-term debt obligations.1 A separate DSF is usually created to account for each major general long-term debt issue.However

30、,a DSF is not required by GAAP unless it is legally or contractually mandated or a government is accumulating resources to be used to pay future years debt service payments.2 Debt service funds generally use modified accrual accounting to account for revenues and expenditures.a The GASB Codification

31、 identifies a major expenditure recognition exception related to debt service expenditures for general long-term debt.2009 Pearson Education,Inc.publishing as Prentice Hall 212 b Principal and interest expenditures on general long-term debt are to be recognized in the period that they are legally du

32、e and payable,i.e.,the period in which they mature.However,if the payment is due early(within a few weeks)in the next fiscal year,and resources are available in the fund before the end of the current year,a government is permitted,but not required,to accrue the next principal and interest payment.B

33、Debt service funds for term bond issues involve sinking fund operations,as resources are accumulated to retire all of the debt at maturity,as well as accounting for the regular interest payments on the debt.C Debt service funds for serial bond issues involve receiving resources as needed and distrib

34、uting those resources for the principal and interest payments.No significant balances would be carried over from one period to the next.GOVERNMENTAL FUND FINANCIAL STATEMENTS A Required governmental fund financial statements include a statement of net assets or balance sheet,and a statement of reven

35、ues,expenditures,and changes in fund balance.1 Budgetary comparison information must be presented for the GF and each SRF that has a legally adopted budget.This is required supplementary information.2 The budgetary basis comparison must be presented on the budgetary basis of accounting,even if it di

36、ffers from GAAP.A reconciliation of the budget to GAAP statements must appear either on the face of the statements or in the notes to the statements.PREPARING THE GOVERNMENT-WIDE FINANCIAL STATEMENTS A A government must include governmental fund activities in the governmentwide financial statements.

37、1 These are prepared on the accrual basis rather than the modified accrual basis.2 There must be a conversion of governmental fund information for the government-wide financial statements.A conversion worksheet is an optional internal document that may be helpful to meet this requirement.2009 Pearso

38、n Education,Inc.publishing as Prentice Hall 213 B The governmentwide financial statements include a statement of net assets and a statement of activities.1 GASB 34 requires a reconciliation between the total fund balance for governmental funds(reported on the fund financial statements)and the net as

39、sets for governmental funds(reported on the government-wide financial statements.2 GASB 34 requires a reconciliation between the change in fund balance(reported on the fund statement of revenues,expenditures,and change in fund balance)and the change in net assets(reported on the statement of activit

40、ies).3 Both reconciliations may appear either on the face of the fund financial statements or in an accompanying schedule.2009 Pearson Education,Inc.publishing as Prentice Hall 214 Description of assignment material Minutes Questions (21)Exercises(15)E19-1 5 MC general questions 10 E19-2 5 MC genera

41、l questions 10 E19-3 5 MC general questions 12 E19-4 5 MC general questions 10 E19-5 AICPA 5 MC general questions 10 E19-6 AICPA 5 MC general and problem-type questions 20 E19-7 Jedvillegeneral fund journal entries(property taxes)15 E19-8 Any City closing entries 20 E19-9 Millar general fund balance

42、 sheet 20 E19-10 Mc Gwire general fund statement of revenues and expenditures 20 And changes in fund balance E19-11 general fund journal entries 25 E19-12 Rochester general fund journal entries 25 E19-13 Governmental fund journal entries 15 E19-14 Hollyville Governmental fund reconciliation to total

43、 net assets 20 E19-15 Boulder Governmental fund reconciliation to total net assets 20 Problems(12)P19-1 Orchard Park general fund balance sheet 25 P19-2 Batavia general fund financial statements 30 P19-3 Tyler journal entries to record budget,budgetary comparison,identify 45 items to be reconciled b

44、etween fund model and government model P19-4 Fort Collins governmental fund conversion worksheet 30 P19-5 AICPA Oslo reconstruct journal entries 30 P19-6 AICPA Lahti Journal entries from trial balance 30 P19-7 Volendam statement of revenues,expenditures,and changes in fund 25 balance,for the general

45、 fund P19-8 Lilehammar journal entries(debt service fund)20 P19-9 Stockholm Journal entries(capital projects fund)20 P19-10 Malmojournal entries and closing entry(multiple funds)25 P19-11 AICPA Cerone Journal entries and balance sheet(capital projects fund)40 P19-12 Catalina Journal entries and financial statements(capital project fund)50 Internet assignment 1.Visit the GASB website and select a CAFR.Answer questions relating to the government unit you selected.2.Using the website from your local municipality,answer questions.3.Answer questions from your countys website.