CGFM EXAM 2 Study Guide (2023/2024) Rated A+ Non-Spendable Fund Balance Assets not in spendable form-Inventories and prepaid items, principal of a permanent fund which may not be spent, and assets held for sale and long-term receivables. Examples: Supplies, inventory, membership fees
Restricted Fu...
CGFM EXAM 2 Study Guide (2023/2024) Rated A+ Non-Spendable Fund Balance ✔✔Assets not in spendable form -Inventories and prepaid items, principal of a permanent fund which may not be spent, and assets held for sale and long -term receivables. Examples: Supplies, inventory, membership fees Restricted Fund Balance ✔✔Subject to constraints imposed by exter nal parties or law. Debt covenants (such as a requirement for a sinking fund) or constraints imposed by legislation or federal and state agencies, creditors, contributors or granting agencies Three Categories of net position section of the government -wide Statement of Net Position ✔✔Restricted, Committed & Assigned Committed Fund Balance ✔✔Governing body formally committed net resources to specific activities. Contractual obligations outstanding. Board approval of large construction contracts would typica lly represent commitment of the funds. Assigned Fund Balance ✔✔Residual balances in funds other than the General Fund or in the general fund that are intended for identified purposes Difference between Committed and Restricted ✔✔Committed constraint is i mposed by a government upon itself GASB standards state that rainy day funds may be classified as committed only under specific circumstances which are ✔✔they are created by a resolution or ordinance that identifies the specific circumstances under which the resources may be expended Other financing sources consist of ✔✔transfers in from other funds and proceeds of long -term borrowing Fund Revenues consist of ✔✔taxes, charges for services, amounts provided by other entities such as state or federal gover nment Other fund uses ✔✔Transfers of cash out of one fund to other funds To recognize revenue from the General Fund transferred to a debt service fund to record payments of interest and principal on general obligation debt ✔✔Credit General Fund Tax Reven ue Debit General Fund Other Financing Uses -Transfers Out Debit Debt Service Fund Other Financing Sources - Transfer In Credit Debt Service Fund Expenditures Fund Budgetary Accounts ✔✔Estimated Revenues, Appropriations, Estimated Other Financing Sources, Estimated Other Financing Uses, Encumbrances Fund Activity Accounts ✔✔Revenues, Expenditures, Other Financing Sources, Other Financing Uses Fund Revenues ✔✔Tax Revenues, Charges for Services Fund Expenditures ✔✔Current, Capital Outlay, Debt Service Other Financing Sources ✔✔Transfers In, Debt Proceeds Other Financing Uses ✔✔Transfers Out When a PO or Contract is issued as authorized by an appropriation the government recognizes this commitment as ✔✔An encumbrance (not yet a liability) JE for City Council approves fiscal year budget for General Fund JE for Financial Statement Accounts ✔✔DR Estimated Revenues CR Appropriations Budgetary Fund Balance is a CR NONE JE for City Departments issue PO for goods and services JE for Financial Statement Accounts ✔✔DR Encumbrances Control CR Budgetary Fund Balance Reserve for Encumbrances (To Establish the Encumbrance) NONE JE for Goods and Services are received and invoices are presented for payment JE for Financial Statement Accounts ✔✔DR Budgetary Fund Balance Reserve for Encumbrances
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller StellarScores. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
