Description
Governmental and Nonprofit Accounting Edition 11 by Robert J. Freeman EBOOK PDF Instant Download
Table of Contents
GOVERNMENTAL AND NONPROFIT ACCOUNTING
GOVERNMENTAL AND NONPROFIT ACCOUNTING Theory and Practice
Brief Contents
Contents
Preface
EYES-OF-THE-LEARNER–MOTIVATED CHANGES
STANDARDS-DRIVEN CHANGES
CUSTOMIZATION FRIENDLY DESIGN
LEARNING FRIENDLY
OTHER POINTS OF DISTINCTION
INSTRUCTOR SUPPLEMENTS
MOST IMPORTANTLY
About the Authors
CHAPTER 1 Governmental and Nonprofit Accounting Environment and Characteristics
LEARNING OBJECTIVES
CHARACTERISTICS AND TYPES OF G&NP ORGANIZATIONS
G&NP Sector Significance
The G&NP Environment
Organizational Objectives
Sources of Financial Resources
Evaluating Performance and Operating Results
OBJECTIVES OF G&NP ACCOUNTING AND FINANCIAL REPORTING
AUTHORITATIVE SOURCES OF G&NP ACCOUNTING PRINCIPLES AND REPORTING STANDARDS
The FAF
The FASB
FASB-GASB Jurisdictions
“Government” Defined
The GASB
GAAP Hierarchies
CONCEPTS AND OBJECTIVES OF SLG ACCOUNTING AND FINANCIAL REPORTING
Governmental-Type Activities
Purpose
Sources of Financial Resources
Taxation?
Intergovernmental Revenues
Financial Resource Allocation Mechanisms
Restrictions on Resource Use?
The Budget?
Accountabilities
To Whom Accountable?
Accountability Focuses?
Reporting Issues and Problems
Financial Report Users
Financial Report Uses
Business-Type Activities
The Relationship between Services Received and Resources Provided by the Consumer
Revenue-Producing Capital Assets
Similarly Designated Activities and Potential for Comparison
The Nature of the Political Process
Budgets and Fund Accounting
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
APPENDIX 1-1 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)
Questions
Exercises
Problems
CHAPTER 2 State and Local Government Accounting and Financial Reporting Model The Foundation
LEARNING OBJECTIVES
OVERVIEW OF THE GASB FINANCIAL REPORTING MODEL
THE FUNDAMENTAL FEATURES OF THE SLG ACCOUNTING AND FINANCIAL REPORTING MODEL
GAAP and Legal Compliance
GAAP Reporting
Compliance
Fund Accounting
Fund Categories
Proprietary Funds
Governmental Funds
Deferred Outflows of Resources and Deferred Inflows of Resources—Discussion Approach
Nonfund Accounts
Fiduciary Funds
Transaction Analysis
Types of Funds
Types of Proprietary Funds
Types of Governmental Funds
Identifying Governmental Fund Types in Transaction Analysis
Types of Fiduciary Funds
Summary of Types of Funds
Comparative Financial Statement Formats
Operating Statements
Balance Sheets
Annual Financial Reporting
Individual and Combining Statements
Financial Reporting Entity and Component Units
Government-wide Financial Statements
Concluding Comments
Questions
Exercises
Problems
Cases
CHAPTER 3 Budgeting, Budgetary Accounting, and Budgetary Reporting
LEARNING OBJECTIVES
THE GOVERNMENT BUDGETARY PERSPECTIVE
BUDGETARY ACCOUNTING OVERVIEW
Budgetary Accounting and Control
General Ledger
Subsidiary Ledgers
Revenues Subsidiary Ledgers
Expenditures Subsidiary Ledgers
BUDGETARY REPORTING OVERVIEW
The Budgetary Basis
Interim Budgetary Statements
Interim Revenues Statements
Interim Expenditures Statements
Interim Revenues and Expenditures Statements
Annual Budgetary Comparisons
Budgetary Comparison Statement Illustrated—Budgetary Basis Differs from GAAP
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
BUDGET PREPARATION
Overview
Preliminary Estimates
Preparing the Budget
Revenue Estimates and Requests
Expenditure Estimates and Requests
Expenditure Budgeting Approaches
The Object-of-Expenditure Approach
Essential Elements of the Approach?
Control Points?
Other Estimates and Requests
The Budget Document
LEGISLATIVE CONSIDERATION AND ACTION
BUDGET EXECUTION
Concluding Comments
Appendix 3-1 Classification of Expenditures
CLASSIFICATION BY FUNCTION OR PROGRAM
CLASSIFICATION BY ORGANIZATION UNIT
CLASSIFICATION BY ACTIVITY
CLASSIFICATION BY CHARACTER
CLASSIFICATION BY OBJECT CLASSES
Questions
Exercises
Problems
Cases
CHAPTER 4 The General Fund and Special Revenue Funds
LEARNING OBJECTIVES
GENERAL FUND AND SPECIAL REVENUE FUNDS: USE AND MEASUREMENT FOCUS
Measurement Focus
Purposes and Assumptions of This Chapter
GENERAL FUND ACCOUNTING—ILLUSTRATIVE EXAMPLE
Entries During 20X1
Budgetary Entry
Budget Revisions
Property Tax Levy
Other Revenues Billed or Accrued
Encumbrances and Related Expenditures
Unencumbered Expenditures
Interfund Activity
Interfund Reimbursements?
Interfund Transfers?
Interfund Services?
Interfund Loans?
Short-Term External Borrowings
Extraordinary and Special Items
Other Transactions and Events
Year-End Adjustments
Preclosing Trial Balances
Illustrative Example Worksheets
20X1 Closing Entries
General Ledger Closing Entries
Subsidiary Ledger Closing Entries
Level of Detail in Subsidiary Ledgers
Postclosing Trial Balance
BALANCE SHEETS
Interim Balance Sheet
Year-End Balance Sheet
Fund Balance
Fund Balance Reporting Classifications
Nonspendable Fund Balance
Restricted Fund Balance
Committed Fund Balance
Assigned Fund Balance
Unassigned Fund Balance
Order of Fund Balance Reduction for Expenditures
Fund Balance Reporting Classifications Are Determined at Year End
Fund Balance Reporting Illustrated
Interfund Receivables and Payables
Capital Assets and Long-Term Liabilities
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
Restatements
Extraordinary Items and Special Items
BUDGET COMPARISON STATEMENT OR SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE—BUDGET AND ACTUAL
Budgetary Comparison Statement Illustrated—Budgetary Basis Same as GAAP
ENTRIES DURING 20X2
CLASSIFICATION OF EXPENDITURES
COMBINING SPECIAL REVENUE FUND STATEMENTS
Concluding Comments
APPENDIX 4-1 General Ledger Worksheet and Subsidiary Ledgers
APPENDIX 4-2 Alternative Account Structure and Entries
APPENDIX 4-3 Budgetary Comparison Statement Illustrated—Budgetary Basis Differs from GAAP
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
HARVEY CITY SOLUTION APPROACH
HARVEY CITY CHAPTER 4 REQUIREMENTS
HARVEY CITY GENERAL FUND TRIAL BALANCE
HARVEY CITY GENERAL FUND BUDGET
HARVEY CITY GENERAL FUND TRANSACTIONS—20X4
CHAPTER 5 Revenue Accounting—Governmental Funds
LEARNING OBJECTIVES
REVENUE DEFINITION AND RECOGNITION
NONEXCHANGE TRANSACTIONS
GOVERNMENTAL FUND AND PROPRIETARY FUND REVENUE RECOGNITION COMPARED
CLASSIFICATION OF REVENUE ACCOUNTS
General Fund Revenues
Other Governmental Funds Revenues
TAXES
Taxpayer-Assessed Taxes
Property Taxes
Assessment of Property
Review of Assessment
Equalization of Assessments
Levying the Tax
Determining the Tax Rate?
Determining the Amount Due from Each Taxpayer?
Setting Up Taxes Receivable and Billing Taxpayers
The Tax Roll?
Recording Taxes in the Accounts?
Recording Tax Collections
Collection of a Government’s Taxes by Another Unit
Taxes Levied to Finance Next Year’s Budget
Taxes Collected in Advance
Discounts on Taxes
Enforcing the Collection of Taxes
Recording Interest and Penalties on Taxes?
Accounting for Tax Sales?
Property Tax Statements/Schedules
LICENSES AND PERMITS
INTERGOVERNMENTAL REVENUES
Intergovernmental Revenue Classifications
Intergovernmental Revenue Accounting
Fund Identification
Pass-Through Grants
Revenue Recognition
Grant Received Before Earned?
Grant Earned Before Received?
CHARGES FOR SERVICES
Interfund Services vs. Reimbursements
Charges for Services
FINES AND FORFEITS
INVESTMENT EARNINGS
Valuation Approaches and Techniques
Disclosure of Inputs to Fair Value Measurements
Reporting Investments in the Financial Statements
MISCELLANEOUS REVENUES
Escheats
Private Contributions
SELECTED NONREVENUE FUND BALANCE INCREASES
Capital Asset Sales/Losses
Internal Payments in Lieu of Taxes (PILOTs)
Collateralized Borrowings
REVENUE REPORTING: GAAP VS. BUDGETARY
Balance Sheet Reporting Related to Unrecognized Revenues
CHANGES IN ACCOUNTING PRINCIPLES AND ERROR CORRECTIONS
New GASB Standards
Prospective Application
Retroactive Application
Error Corrections
Concluding Comments
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
HARVEY CITY GENERAL FUND REQUIREMENTS
HARVEY CITY ADDICTION PREVENTION SPECIAL REVENUE FUND
HARVEY CITY ADDICTION PREVENTION SPECIAL REVENUE FUND REQUIREMENTS
Transactions and Events–20X4
CHAPTER 6 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 Recognition Summary
EXPENDITURE ACCOUNTING CONTROLS AND PROCEDURES
Personal Services
Pension Cost and OPEB Cost Expenditure Recognition
Defined Contribution Plans?
Defined Benefit Plans?
Materials and Supplies
Accounting for Purchases of Materials and Supplies
Accounting for Use of Materials and Supplies
Consumption Method
Perpetual System?
Periodic System?
Purchases Method
Other Services and Charges
Prepayments
Capital Leases and Certificates of Participation
ADJUSTING ENTRIES
Encumbrances
Debt Service
Claims and Judgments
GASB Standards
Adjusting Entries—Claims and Judgments
Insurance, Self-Insurance, and No Insurance
Amount Estimable, but Settlement Delayed?
Not Estimable in 20X1; Settled and Received in 20X2?
Self-Insured Plans?
Compensated Absences
Adjusting Entries—Compensated Absences
Rationale
Pension/OPEB Plan Expenditures
EXPENDITURE REPORTING: GAAP VS. BUDGETARY
CHANGES IN ACCOUNTING PRINCIPLES
Alternative Principles
New GASB Standards
ERROR CORRECTIONS
Concluding Comments
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
GENERAL FUND REQUIREMENTS
ECONOMIC DEVELOPMENT SPECIAL REVENUE FUND
Economic Development Special Revenue Fund Requirements
Economic Development Special Revenue Fund Beginning Trial Balance
Economic Development Special Revenue Fund Budget
TRANSACTIONS AND EVENTS—20X4
CHAPTER 7 Capital Projects Funds
LEARNING OBJECTIVES
CAPITAL PROJECTS FUND OPERATIONS AND ACCOUNTING STANDARDS
CPF Financial Resources
Number of Funds
CPF Life Cycle
The Budget
Interim Financing
Project Costs
Overhead
Interest
Intergovernmental Revenues
Recording Bond Issues
CAPITAL PROJECTS FUND—CASE ILLUSTRATION BEGUN, 20X1
Budgetary Entry
Transaction/Event Entries
General Ledger Worksheet(s)
Preclosing Trial Balance
Closing Entries
Accounts Not Closed
Accounts Closed
Financial Statements
Balance Sheet
Operating Statement
CAPITAL PROJECTS FUND—CASE ILLUSTRATION CONCLUDED, 20X2
20X1 Accounts Closed
Case Illustration Assumptions and Entries—20X2
General Ledger Worksheet
20X2 Financial Statements
Project Operating Statement
Project Budgetary Comparison Statement
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
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
CAPITAL PROJECTS FUNDS
REQUIREMENTS—PARKS AND RECREATION CAPITAL PROJECTS FUND
TRANSACTIONS AND EVENTS—20X4—PARKS AND RECREATION CAPITAL PROJECTS FUND
REQUIREMENTS—BRIDGE CAPITAL PROJECTS FUND
BEGINNING 20X4 TRIAL BALANCE—BRIDGE CAPITAL PROJECTS FUND
TRANSACTIONS AND EVENTS—20X4—BRIDGE CAPITAL PROJECTS FUND
CHAPTER 8 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
DEBT SERVICE FUND FOR A TERM BOND ISSUE
DEBT SERVICE FUNDS FOR DEEP DISCOUNT ISSUES
REFUNDINGS
Reasons for Refundings
Refundings Defined
Defeasance of Debt
Legal Defeasance
In-Substance Defeasance
Nondefeasance
DEBT SERVICE FUNDS FOR REFUNDINGS
Current Refunding
Advance Refunding
Debt and Nondebt Financing
Reporting Refundings
Advance Refunding Disclosures
In the Year of the Advance Refunding
As Long as In-Substance Defeased Debt Is Outstanding
Concluding Comments
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
DEBT SERVICE FUNDS
REQUIREMENTS—CITY HALL BONDS DEBT SERVICE FUND
TRANSACTIONS AND EVENTS—20X4—CITY HALL BONDS DEBT SERVICE FUND
REQUIREMENTS—GENERAL DEBT SERVICE FUND
BEGINNING 20X4 TRIAL BALANCE
TRANSACTIONS AND EVENTS—20X4—GENERAL DEBT SERVICE FUND
CHAPTER 9 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
Cost
Estimated Cost
Gifts, Foreclosures, Eminent Domain, and Escheat
Classification
Capitalization Policy
Legal Compliance
Intangible Assets
Reporting Works of Art and Historical Treasures
Materiality and Control Considerations
Property Records
Capital Assets Inventory
Additions, Betterments, and Renewals
Depreciation/Accumulated Depreciation
Modified Approach
Updating GCA Accounts
Assets Financed from the General Fund or Special Revenue Funds
Assets Financed Through Capital Projects Funds and Special Assessments
Assets Acquired Through Foreclosure
Assets Acquired through Gifts
Recording Depreciation
Sale, Replacement, or Retirement
Sale
Replacement (Trade-In)
Retirement
Intragovernmental Transactions
Intragovernmental Sale
Intragovernmental “Transfer”
General Government Transfer?
Proprietary Fund–General Government Transfer?
General Government–Proprietary Fund Transfer?
Impairment
Indicators of Impairment
Tests of Impairment
Applying Impairment Standards
Impairment Measurement
Measurement—Assets Continue to Be Used
Measurement—Assets No Longer Used
Reporting Impairment Losses
Insurance Recoveries
Damage or Destruction
Reporting and Disclosures
GENERAL LONG-TERM LIABILITIES
CPF-DSF-GLTL
Serial Debt
Special Assessment Debt
Other Government Liabilities
Pensions and OPEB
Interest-Related Adjustments
Defaulted Bonds
In-Substance Defeasance
GLTL Records
GLTL Reporting and Disclosures
PERMANENT FUNDS
INTRODUCTION TO INTERFUND-GCA-GLTL ACCOUNTING
Concluding Comments
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
GENERAL CAPITAL ASSETS AND GENERAL LONG-TERM LIABILITIES
REQUIREMENTS—GENERAL CAPITAL ASSETS AND GENERAL LONG-TERM LIABILITIES
BEGINNING 20X4 TRIAL BALANCE
TRANSACTIONS AND EVENTS—20X4
General Fund Transactions
Parks and Recreation Capital Projects Fund Transactions
Bridge Capital Projects Fund Transactions
City Hall Refunding Bonds Debt Service Fund Transactions
General Debt Service Fund Transactions
Additional Transactions and Events
CHAPTER 10 Enterprise Funds
LEARNING OBJECTIVES
COMMON CHARACTERISTICS AND PRINCIPLES OF PROPRIETARY FUNDS
Accounting Equation
Accounting Principles
Financial Statements
ENTERPRISE FUNDS DEFINED
ENTERPRISE FUND ACCOUNTING ILLUSTRATED
Budgeting and Appropriations
Interfund Activity
Intergovernmental Grants
Interest Capitalization
Establishment of Fund and Acquisition of Plant
Accounting for Routine Operating Transactions
Unbilled Receivables
Net Pension Liabilities and Related Amounts
Accounting for Extraordinary and Special Items
Preclosing Trial Balance and Financial Statements—Basic Example
Statement of Net Position
Net Investment in Capital Assets?
Restricted Net Position?
Unrestricted Net Position?
Net Position Components Computed at Year End?
Statement of Revenues, Expenses, and Changes in Fund Net Position
Statement of Cash Flows
Cash Flows from Operating Activities?
Cash Flows from Noncapital Financing Activities and Cash Flows from Capital and Related Financing Activities?
Cash Flows from Investing Activities?
ENTERPRISE FUND ACCOUNTING—EXTENDED ILLUSTRATION
Enterprise Fund Reporting—Extended Example
Statement of Net Position
Statement of Revenues, Expenses, and Changes in Fund Net Position
Statement of Cash Flows
COMBINING ENTERPRISE FUND FINANCIAL STATEMENTS
Concluding Comments
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
ENTERPRISE FUND
REQUIREMENTS
BEGINNING 20X4 TRIAL BALANCE
TRANSACTIONS AND EVENTS—20X4
CHAPTER 11Internal Service Funds
LEARNING OBJECTIVES
OVERVIEW OF ACCOUNTING PRINCIPLES
Initial Establishment
PRICING POLICIES AND METHODS
Pricing Methods
Relation to Budget
Financial Statements
INTERNAL SERVICE FUND ACCOUNTING ILLUSTRATED
Automotive Equipment Unit
FINANCIAL STATEMENTS–BASIC EXAMPLE
Central Stores Fund
Inventory Acquisition
Perpetual Inventory Procedures
Billing Rates
Inventory Issued
Overhead Expenses
Physical Inventory
Closing Entries
Entries in Other Funds
SELF-INSURANCE FUND
DISPOSITION OF INCREASE OR DECREASE IN NET POSITION
DISSOLUTION OF AN INTERNAL SERVICE FUND
COMBINING INTERNAL SERVICE FUND FINANCIAL STATEMENTS
Concluding Comments
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
CENTRAL COMMUNICATIONS NETWORK INTERNAL SERVICE FUND
REQUIREMENTS
BEGINNING 20X4 TRIAL BALANCE
TRANSACTIONS AND EVENTS—20X4
CHAPTER 12 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
Accounting Standards
Retirement Fund Example
Employer Government/Employer Fund Reporting
COMBINING TRUST AND AGENCY FUND FINANCIAL STATEMENTS
ADDITIONAL INTERFUND, GENERAL CAPITAL ASSET, AND GENERAL LONG-TERM LIABILITY ACCOUNTING ILLUSTRATIONS
Concluding Comments
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
PENSION TRUST FUND
REQUIREMENTS
BEGINNING 20X4 TRIAL BALANCE
TRANSACTIONS AND EVENTS—20X4
CHAPTER 13 Financial Reporting The Basic Financial Statements and Required Supplementary Information
LEARNING OBJECTIVES
BASIC FINANCIAL STATEMENTS OVERVIEW
FUND FINANCIAL STATEMENTS
Major Fund Reporting
Major Fund Statement Formats
Identifying Major Funds
Fund-Based Financial Statements
Governmental Funds Financial Statements
Proprietary Funds Financial Statements
Fiduciary Funds Financial Statements
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statement of Net Position
Statement of Activities
Measurement Focus
Reporting Expenses
Program vs. General Revenues
Internal Service Funds
Infrastructure Capital Assets
NOTE DISCLOSURES
REQUIRED SUPPLEMENTARY INFORMATION
Management’s Discussion and Analysis
Other RSI
Special Purpose Governments
Concluding Comments
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
REQUIREMENTS—HARVEY CITY FUND FINANCIAL STATEMENTS
Chapter 14 Financial Reporting Deriving Government-Wide Financial Statements and Required Reconciliations
LEARNING OBJECTIVES
DERIVING GOVERNMENTAL ACTIVITIES DATA
DERIVING GOVERNMENT-WIDE FINANCIAL STATEMENT DATA FOR GOVERNMENTAL ACTIVITIES—A WORKSHEET-BASED APPROACH
The Conversion Worksheets
Balance Sheet Conversion Worksheet Adjustments
GCA Balance Adjustments
GLTL-Related Balance Adjustments
Other Balances, Deferred Outflows/Inflows of Resources, and Interfund Items Adjustments
Farley County Balance Sheet Conversion
GCA Balances
GLTL-Related Balances
Other Balances, Deferred Outflows/Inflows of Resources, and Interfund Items
Government-Wide Statement of Net Position Information
Operating Statement Conversion Worksheet Adjustments
GCA Changes
GLTL-Related Changes
Other Changes, Deferred Outflows/Inflows of Resources, and Interfund Items
Farley County Operating Statement Conversion
GCA Changes
GLTL-Related Changes
Other Changes, Deferred Outflows/Inflows of Resources, and Interfund Items
Reconciliation: Change in Fund Balances with Change in Net Position
DERIVING BUSINESS-TYPE ACTIVITIES DATA
PREPARING GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statement of Net Position
Statement of Activities
Reconciliations
Concluding Comments
APPENDIX 14-1 A Two-Worksheet Approach to Deriving Governmental Activities Data: An Adjusting Entry Presentation
Farley County Balance Sheet Conversion Worksheet Adjustments
GCA Balances
GLTL-Related Balances
Other Balances, Deferred Outflows of Resources, Deferred Inflows of Resources, and Interfund Items
The Government-Wide Statement of Net Position Information
Reconciliation: Total Fund Balances to Total Net Position
Farley County Operating Statement Conversion Worksheet Adjustments
Change in Net Position as a Worksheet Account
GCA Changes
GLTL-Related Changes
Other Balances, Deferred Outflows of Resources, Deferred Inflows of Resources, and Interfund Items
The Government-Wide Statement of Activities Information
Reconciliation: Change in Fund Balances with Change in Net Position
APPENDIX 14-2 A One-Worksheet Approach to Deriving Governmental Activities Data
GCA-GLTL ADJUSTMENTS
Elimination and Capitalization of Capital Outlay Expenditures
Sale of General Capital Assets
Depreciation Expense
General Long-Term Debt Issuance
General Long-Term Debt Principal Retirement
Converting Interest Expenditures to Interest Expenses
BASIS OF ACCOUNTING ADJUSTMENTS
Convert Claims and Judgments Expenditures to Expenses
Convert Compensated Absences Expenditures to Expenses
Convert OPEB and Pension Expenditures to Expenses
Convert Revenues from Modified Accrual to Accrual
ELIMINATING INTERFUND TRANSACTIONS
COMPLETING THE WORKSHEET
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
REQUIREMENTS
ADDITIONAL INFORMATION
CHAPTER 15 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 Auditor’s Report
The Basic Financial Statements and Required Supplementary Information
The Combining and Individual Fund Statements and Schedules
The Statistical Section
Financial Trends Information
Revenue Capacity Information
Debt Capacity Information
Demographic and Economic Information
Operating Information
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
Dual Reporting Entity Model
Other Issues
SEPARATE ISSUANCE OF PRIMARY GOVERNMENT FINANCIAL STATEMENTS
RELATED ORGANIZATIONS, JOINT VENTURES, AND JOINTLY GOVERNED ORGANIZATIONS
Concluding Comments
Questions
Exercises
Problems
Cases
Harvey City Comprehensive Case
REQUIREMENTS
CHAPTER 16 Non-SLG Not-for-Profit Organizations
LEARNING OBJECTIVES
CLASSIFICATION OF ORGANIZATIONS
Voluntary Health and Welfare Organizations (VHWOs)
Other Not-for-Profit Organizations (ONPOs)
CLASSES OF NET ASSETS
NON-GAAP ACCOUNTING AND REPORTING REQUIREMENTS
BASIS OF ACCOUNTING
FINANCIAL STATEMENTS
Statement of Financial Position (Balance Sheet)
Investments
Pledges
Fixed Assets
Collections
Trusts and Similar Agreements
Statement of Activities (Operating Statement)
Revenues and Expenses Reported at Gross Amounts
Contributions
Pledges, Membership Dues, and Other Fees
Special Fund-Raising Events
Investment Income and Gains/Losses
Donated Materials, Facilities, and Services
Net Assets Released from Restrictions
Expenses
Program Services?
Supporting Services?
Management and General Costs?
Fund-Raising and Other Supporting Services?
Statement of Cash Flows
Statement of Functional Expenses
NONGOVERNMENT VHWO AND ONPO ACCOUNTING AND REPORTING ILLUSTRATION
Transactions and Entries
Illustrative Financial Statements
Balance Sheet
Operating Statement
Statement of Cash Flows
Statement of Functional Expenses
Concluding Comments
Questions
Exercises
Problems
CHAPTER 17 Accounting for Colleges and Universities
LEARNING OBJECTIVES
CLASSIFICATION AS “ENGAGED ONLY IN BUSINESS-TYPE ACTIVITIES”
GAAP Reporting Requirements
Statement of Net Position
Statement of Revenues, Expenses, and Changes in Net Position
Tuition and Fee Revenues
Restricted Gifts and Grants
Revenue and Expense Classifications
Statement of Cash Flows
CASE ILLUSTRATION—A GOVERNMENT UNIVERSITY
Other Resources
Loan Funds
Endowment and Similar Gifts
Determining and Reporting Income?
Transactions and Entries—Endowment Gifts?
Preclosing Trial Balance and Closing Entries
Financial Statements
Statement of Net Position?
Statement of Revenues, Expenses, and Changes in Net Position?
Statement of Cash Flows?
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
Questions
Exercises
Problems
CHAPTER 18 Accounting for Health Care Entities
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
Statement of Net Position
Operating Statement
Statement of Cash Flows
NONGOVERNMENT NOT-FOR-PROFIT HOSPITAL REPORTING
Concluding Comments
Questions
Exercises
Problems
Chapter 19 Federal Government Accounting
LEARNING OBJECTIVES
THE FEDERAL FINANCIAL MANAGEMENT ENVIRONMENT
Financial Accounting Responsibilities
Department of the Treasury
Office of Management and Budget (OMB)
Government Accountability Office (GAO)
Federal Accounting Standards Advisory Board (FASAB)
Federal Agencies
Overview
THE BUDGETARY PROCESS
The Budget Cycle
Preparation and Approval
Execution
Warrants?
Apportionment?
Allotment?
Commitment?
Obligation?
Expended Appropriations?
Expired Authority?
Reporting
Exceeding Budget Authority
ACCOUNTING PRINCIPLES AND STANDARDS FOR FEDERAL AGENCIES
The Federal Model
Cash and Disbursements
Net Position
Cumulative Results of Operations?
Unexpended Appropriations?
Changes in Net Position
Enacting Appropriations?
Incurring Expended Appropriations?
Incurring Unfunded (or Future Funded) Expenses?
Standard General Ledger
Federal Fund Structure
Financial Reporting
Agency Level
Government-Wide Statements
FEDERAL AGENCY ACCOUNTING AND REPORTING ILLUSTRATED
A Case Illustration
Maintaining Budgetary Control
Maintaining Proprietary Accounts
Other Transactions and Entries
Closing Entries
Budgetary Accounts
Proprietary Accounts
Reporting
Concluding Comments
Questions
Exercises
Problems
CHAPTER 20 Auditing Governments and Not-for-Profit Organizations
LEARNING OBJECTIVES
OVERVIEW
WHAT IS AN AUDIT?
Classifications of Audits
Sources of Auditing Standards
External Auditor Classifications
THE FINANCIAL STATEMENT AUDIT
GAAS and GAGAS
Independence
Threats and Safeguards?
Prohibitions within Certain Nonaudit Services?
Audits Subsequent to Nonaudit Services?
Continuing Professional Education (CPE) Requirements
Audit Materiality and Early Reporting of Deficiencies
Additional Reporting Requirements
Planning the Financial Statement Audit
Determining Materiality in Government
Performing the Audit
Audit Procedures
Evaluating Misstatements?
Inquiring of Legal Counsel?
Management’s Representations?
Related Party, Going Concern and Subsequent Events?
Analytical Procedures, Required Communications, and Audit Documentation?
Reporting
The Audit Report
Report on Internal Controls over Financial Reporting and on Compliance and Other Matters
Required Communications and the Management Letter
THE SINGLE AUDIT
Purposes and Recent Reforms
Applicability
Definitions
Objectives
Overview
Auditee Responsibilities
Auditor Responsibilities
Sources of Guidance for the Single Audit
Cognizant Agency Responsibilities
Major FFA Programs
Low-Risk Auditee
Findings and Questioned Costs
Illegal Acts
Subrecipients
Auditor Reports—Single Audit
Auditee Reporting Responsibilities
Concluding Comments
APPENDIX 20-1 Glossary
APPENDIX 20-2 Data Collection Form for Reporting on Audits of States, Local Governments, and Nonprofit Organizations
Questions
Exercises
Problems
Cases
Index
