Accy 161 Exam 2

B. The capital projects fund

C. Capital projects.

D. Capital Projects Fund: Yes; Debt Service Fund: No

A. No depreciation can be recorded in any governmental fund, but depreciation expense must be reported in the governmental activities accounts.

D. Other financing source.

E. Eligible infrastructure assets

D. Governmental fund.

A. Property taxes levied by the debt service

C. both the government-wide and fund financial statements

D. When legally payable.

C. Fund Balance.

D. Payment of principal and interest on general long-term debt.

A. The government must place cash or other assets in an irrevocable trust sufficient to pay all future interest and principal payments for the debt being defeased.

c. credit to other financing sources account

D. no entries are required on the debt service fund

b. a debit to cash in the general fund accounts

C. there will be a credit to other financing uses

A. infrastructure assets

C. "project life"

A. can be either current or noncurrent liabilities

D. debt from differing taxing authorities

A. less than the debt limit

B. repayment of debt

C. the government-wide financial statements

Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds EXCLUDE those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations, or other governments.

• Assets of a long-term character that are intended to continue to be held or used, such as land, buildings, machinery, furniture, and other equipment.
• Note: the term does not indicate the immobility of an asset, which is the distinctive character of "fixture" Also fixed assets.

Those capital assets of a government that are NOT RECOGNIZED by a proprietary or fiduciary fund.

• Being obliged to explain one's actions, to justify what one does; the requirement for government to answer to its citizenry- 
• - to justify the raising of public resources and expenditure of those resources.
• Also, in the GASB's view,
• 1. the obligation to report whether the government operated within appropriate legal constraints;
• 2. whether resources were used efficiently, economically, and effectively;
• 3. whether current year revenues were sufficient to pay for the services provided in the current year;
• 4. and whether the burden for services previously provided will be shifted to future taxpayers.

• Funds consisting of resources received and held by the government as an agent for others;
• example taxes collected and held by a municipality for a school district.
• Note: Sometimes resources held by a government for other organizations are handled through an agency fund known as a pass-through agency fund.

Earning a higher interest rate from investing borrowed funds than is applicable to the entity's tax-exempt debt. Federal tax regulations require governments to rebate the investment earnings in excess of that permitted.

In trust funds the revenue and expense are called additions and deductions

Term used in GASB standards to describe required government-wide and fund financial statement.

• The method of identifying a number that represents a target to which actual results are compared, or a basis for comparison
• Example: industry averages.

Wanting as few discrete presentations as possible by blending component units such as the department of mosquito and vector control and the park district.

A long-term debt instrument authorized for construction of municipal facilities, typically issued by a quasi-independent authority but secured by a long-term lease with a general-purpose local government.

The value of unused vacation, sick and other leave time for which employees will be paid when they retire or otherwise cease to work for a government.

Separate governments, agencies, or not-for-profit corporations that, pursuant to the criteria in the GASB codification, Section 2100, are combined with other component units to constitute the reporting entity.

An accountancy term, construction in progress asset or capital work in progress entry records the cost of construction work, which is not yet completed. A CIP item is not depreciated until the asset is placed in service

(General definition; not from book) Ability to borrow. The amount a firm can borrow up to the point where the firm value no longer increases.

Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. Debt service funds should be used to report resources if legally mandated. Financial resources that are being accumulated for principal and interest maturing in future years also should be reported in debt service funds.

The method of reporting financial data of component units in a column(s) separate from the financial data of the primary government.

A composite of a government's financial health and its ability and willingness to meet its financial obligations and its commitments to provide services.

• A fund established to finance and account for the acquisition, operation, and maintenance of governmental facilities and services that are entirely or predominantly self-supporting by user charges; or for when the governing body of the government has decided periodic determination of revenues earned, expenses incurred, and/or net income is appropriate.
• Example: Governmentally owned utilities and hospitals are ordinarily accounted for by enterprise funds.

• Any fund held by a government in a fiduciary capacity for an external party, ordinarily as agent or trustee.
• Example: Also called trust and agency funds.

The probability that a government will meet its financial obligations as they become due and its service obligations to constituencies, both currently and in the future.

The adequacy of cash and short-term claims to cash to meet current obligations and those expected in the near future.

A governments ongoing ability and willingness to raise revenues, incur debt, and meet its financial obligations as they become due.

Some of the information on our Site may contain projections or other forward-looking statements regarding future events or our future financial performance, which are subject to risks and uncertainties.  Actual results may vary from those projected or implied by such forward-looking statements. ...

Those capital assets of a government that are not recognized by a proprietary or fiduciary fund.

Roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems installed for the common good.

A transaction in which low-risk U.S. government securities are placed into an irrevocable trust for the benefit of debtholders, and the liability for the debt is removed from the accounts of the entity even though the debt has not been repaid.

Amount transferred from one fund to another

• Funds established to finance and account for services and commodities furnished by a designated department or to other governments. Amounts expended by the fund are restored thereto either from other funds, so that the original fund capital is kept intact.
• Formally called working capital fund or intragovernmental service fund.

Funds used to account for the assets, liabilities, net position, and changes in net position corresponding to the equity of the external participants.

A transaction in which debt is legally satisfied based on certain provisions in the debt instrument (e.g. third-party guarantor assumes the debt) even though the debt has not been repaid.

An approach that allows the government to elect not to depreciate certain eligible infrastructure assets provided certain requirements are met.

• An operating statement classification in which financial inflows other than revenues are reported
• Example: proceeds of long-term debt and transfers in.

• An operating statement classification in which financial outflows other than expenditures are reported
• Example: transfers out

The organizations that collect retirement and other employee benefit contributions from government employers and employees, manage assets, and make payments to qualified retirants, beneficiaries, and disabled employees.

• Spendable (Governmental)
•  *this is all I have in my notes.

Funds used to account for and report resources that are restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government's programs- that is, for the benefit of the government or its citizenry. Permanent funds do not include private-purpose trust funds, which should be used t report situations in which the government is required to use the principal or earning for the benefit of individuals, private organizations, or other governments.

Highly condensed financial information, including budgets, summaries, and narrative descriptions.

Funds that account for contributions received under a trust agreement in which the investment income of an endowment is intended to benefit an external individual, organization, or government.

• Sometimes referred to as income determination, business-like, or commercial-type funds of a state or local government.
• Examples: enterprise funds and internal service funds

• The accounting principles prescribed by deferral or state regulatory commissions for investor-owned and some governmentally owned utilities.
• AKA: Statutory accounting principles (SAP)

An accounting process used to compare two sets of records to ensure the figures are in agreement and are accurate. Reconciliation is the key process used to determine whether the money leaving an account matches the amount spent, ensuring that the two values are balanced at the end of the recording period

Information that is required by generally accepted principles to be included with the audited annual financial statement, usually directly following the notes to the general purpose external financial statements.

Assets (usually of an enterprise fund) that may not be used for normal operating purposes because of the requirements of regulatory authorities, provisions in bond indentures, or other legal agreements, but that need not be accounted for in a separate fund.

A term used in accounting for not-for-profit organizations indicating the portion of the residual of assets and liabilities (i.e. net assets) that has been restricted in purpose or time by parties external to the organization.

(*definition from internet) In economics, the ability of groups, institutions, etc. to generate revenue. The fiscal capacity of governments depends on a variety of factors including industrial capacity, natural resource wealth and personal incomes

Bonds the principal of which is repaid in periodic installments over the life of the issue.

A GO Bond (General Obligation bond)

A government's ongoing ability and willingness to supply the capital and human resources needed to meet its commitments to provide services.

the ability to meet maturing obligations as they come due

The official list showing the amount of special assessments levied against each property presumed to be benefited by an improvement or service.

Agency fund, usually maintained by a county official, to handle the collection of all property taxes within the county or other jurisdiction and the distribution of proceeds to all governments within the borders of that county or other jurisdiction.

• Bonds the entire principal of which matures on one date.
• A GO Bond (General Obligation bond)

• Funds consisting of resources received and held by the government as trustee, to be expended or invested in accordance with the conditions of the trust.
• Example: Endowment, Pension trust funds, private purpose trust funds, public purpose trust funds.

• 1. CFD (community Facilities District)
• 2. Residents vote
• 3. Approved then sell bonds
• 4. Receive cash
• 5. Contract to build (ex: sewer)