chapter 1 G&P Acct
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Created by:
bestravila on February 17, 2012
Subjects:
Governmental and non profit accounting
Description:
governmental and non profit accounting
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47 terms
Terms | Definitions |
|---|---|
 General purpose governments | provide many categories of services to residents, such as police and fire protection; sanitation; construction & maintenance of streets, roads, and bridges; health and welfare. Include states, counties, municipalities, and townships. |
| Special purpose governments | provide only a single or, at most, a few functions. These include special political subdivisions or districts that provide education, drainage and flood control, irrigation, soil and water conservation, fire protection, and water supply. |
| Not-for-Profit Organizations | are legally separate organizations which are usually exempt from federal, state, and local taxation. Examples are religious, community service, private educational and health care, museums, and fraternal and social organizations, among many other kinds of organizations |
| Governmental Entities | because power ultimately rests in the hands of the people; people vote and delegate that power to public officials; they are created by and accountable to a higher level government; and they have the power to tax citizens for revenue |
| governmental not for profit | Public corporations and bodies corporate and politic Popular election of officers, or appointment of a controlling majority of the governing body by officials of another government Potential dissolution by a government with net assets reverting to a government Power to enact and enforce a tax levy |
| Financial Accounting Standards Board | Business Organizations and Nongovernmental Not-for-Profits Committee on Accounting Procedure (1938-59) Accounting Principles Board (1959-73) |
| Governmental Accounting Standards Board | National Committee on Municipal Accounting (1934-41) National Committee on Governmental Accounting (1948-73) National Council on Governmental Accounting (1973-84) |
| Federal Accounting Standards Advisory Board | Federal Government and Its Agencies |
| Responsibility for Establishing and Maintaining Financial Structure for Federal Government | Comptroller General Director of the Office of Management & Budget Secretary of the Treasury |
| accountability | is the cornerstone of all financial reporting in government, it requires the government to answer to the citizenry, to justify the raising of public resources, and the purposes for which they are used. |
| interperiod equity | significant part of accountability and is fundamental to public administration, governmental financial reporting, Term referred to by the GASB, and is an objective in financial reporting for state and local governments and non-profit organizations that means financial reporting should help users assess whether current year revenues are sufficient to pay for services provided that year and whether future taxpayers will be required to assume burdens for services previously provided. |
| General Purpose External Financial Reporting | financial reports to external users which includes not only financial statements but all other means of communicating information that relates directly or indirectly to the information provided by the accounting system. |
| financial reports of state and local government | (1) compare actual financial results with the legally adopted budget; (2) assess financial condition and results of operations; (3) assist in determining compliance with finance-related laws, rules, and regulations; and (4) assist in evaluating efficiency and effectiveness. |
| financial reports for not for profit organizations | (1) information useful in making resource allocation decisions; (2) information useful in assessing services and ability to provide services; (3) information useful in assessing management stewardship and performance; and (4) information about economic resources, obligations, net resources, and changes in them. |
| Governmental and not for profit entities | 1. Receipts of significant amounts of resources from resource providers who do not expect to receive either repayment or economic benefits proportionate to the resources provided. 2. Operating purposes that are other than to provide goods or services at a profit or profit equivalent. 3. Absence of defined ownership interests that can be sold, transferred, or redeemed, or that convey entitlement to a share of residual distribution of resources in the event of liquidation of the organization. |
| Managements discussion and analysis | required supplementary information designed to communicate in narrative easily readable for the purpose of the basic financial statements and governments current financial position and results of financial activities compared with those of prior year |
| government wide financial statements | intended to provide an aggregated overview of a governments net assets and changes in net assets |
| operational accountability | whether the government has used its resources efficiently and effectively in meeting operating objectives |
| fund financial statements | assist in assessing whether the government has raised and spent financial resources in accordance with budget plans and in compliance with pertinent laws and regulations |
| governmental funds | focus on the short term flow of current financial resources or fiscal accountability, rather than on the flow of economic resources |
| Fund Accounting | reports financial information for separate self-balancing sets of accounts, segregated for separate purposes or to account for resources restricted as to use by donors or grantors They are separate accounting and fiscal entities (Chapters 2-9 provide detail) |
| governmental funds | Focus on short-term flow of financial resources Only account for current assets and current liabilities Use modified accrual basis of accounting (revenues recognized when measurable and available for spending and expenditures when incurred) Closely tied to budgetary accounting |
| proprietary and fiduciary funds | Focus on flow of economic resources Accrual basis of accounting (revenues recognized when earned and expenses when incurred) Account for both current and noncurrent assets and current and noncurrent liabilities—similar to business accounting |
| governmental fund financial statements | report on fiscal accountability |
| modified accrual | has evolved for governmental funds, revenues are recorded only if they are measurable and available for paying current period obligations |
| expenditures | are recognized when incurred. |
| expenses | relevant in government wide level, and measure the cost of service provided. if classified by program or function, they are reported for both government and business type of activities. |
| governmental activities | using accrual basis accounting with an economic resource measurement focus in the government wide financial statements, and using modified accrual basis accounting with current financial resources focus in the fund statements |
| Comprehensive Annual Financial report | the state or local governments' official annual report published as a matter of public record |
| proprietary fund financial statements | present financial information for enterprise funds and internal service funds |
| enterprise and internal service funds | are distinguished by the kinds of customers they serve |
| enterprise funds | provide goods and services to the public, reported as business type activities column of the government wide statements |
| internal service funds | mainly serve departments of the same government, reported on the government activities column of the government wide statements |
| proprietary funds | reported in three financial statements: statement of net assets statement of revenues statement of cash flows |
| fiduciary funds | resources that the government is holding or managing for an external party |
| fiduciary funds | most be omitted from the government wide financial statements, but must be reported in a statement of changes in fiduciary net assets, and a statement of fiduciary net assets |
| major fund | general fund, human service and bond project funds as major governmental funds. waste water management and denver airport system funds as major enterprise funds |
| CAFR introduction | Title page; Contents page; Letter of transmittal; Other, as desired by management |
| CAFR financial section | Auditor's Report Management, Discussion & Analysis (MD&A) - a brief objective narrative providing management's analysis of the government's financial performance Basic Financial Statements Government-wide Financial Statements Statement of Net Assets Statement of Activities Fund Financial Statements Balance Sheet - Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances-- Governmental Funds Statement of Net Assets - Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Assets Statement of Changes in Fiduciary Net Assets Required Supplementary Information, RSI (Other than MD&A) Combining and Individual Fund Statements and Schedules |
| statistical section | tables and charts showing multiple-year trends in financial and socioeconomic information |
| service efforts and accomplishments | measures to provide more complete information about a governmental entity's performance than can be provided by basic financial statements, budgetary comparison statements, and schedules |
| governmental funds point of interest | Focus on flow of current (i.e., short-term) financial resources recognized on the modified accrual basis of accounting Assist in assessing fiscal accountability—whether financial resources were raised and expended in compliance with budgetary and other legal provisions Reporting the same information about governmental activities in two different ways creates a need to reconcile the information reported in the governmental fund financial statements to that in the Governmental Activities Column of the government-wide statements (see Ill. 1-7 and 1-9) |
| proprietary funds point of interest | Reports information for enterprise funds and internal service funds using an economic resources focus and accrual basis of accounting. Information reported in separate columns for major enterprise funds. All internal service fund information reported is combined in a single column. |
| fiduciary funds point of interest | Fiduciary activities relate to the government's responsibility as an agent or trustee to hold and/or manage resources for the benefit of private parties. Since fiduciary resources cannot be used by the government, they are reported only in the fiduciary fund financial statements—not in the government-wide statements. |
| Governmental Organizations | are "public corporations and bodies corporate and politic". Other kinds of organizations may be governmental if they have one or more of the following characteristics: a. popular election of officers or appointment (or approval) of a controlling majority of the members of the organization's governing body by officials of one or more state or local governments, b. the potential for unilateral dissolution by a government with the net assets reverting to a government, or c. the power to enact and enforce a tax levy. Organizations are also presumed to be governmental if they have the ability to issue directly (rather than through a state or municipal authority) debt that pays interest exempt from federal taxation. However, organizations possessing only that ability and none of the other governmental characteristics may rebut the presumption that they are governmental if their determination is supported by compelling, relevant evidence. |
| financial statements of a state or local government | government wide financial statements, fund financial statements, notes to the financial statements |
| major fund financial statements | balance sheet- governmental funds; statement of net assets- proprietary funds |
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