CGFM Exam 2 - Section 2, Chapter 2 - Fund Accounting and Reporting 2023/2024
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Course
CGFM
Institution
CGFM
CGFM Exam 2 - Section 2, Chapter 2 - Fund Accounting and Reporting 2023/2024
GASB Codification Section 1300 - ANSWER-Establish the foundational accounting and reporting standards for state and local FUNDS
Fund - ANSWER-Funds are fiscal and accounting entities that are segregated for the pur...
CGFM Exam 2 - Section 2, Chapter 2 -
Fund Accounting and Reporting
2023/2024
GASB Codification Section 1300 - ANSWER-Establish the foundational accounting and reporting
standards for state and local FUNDS
Fund - ANSWER-Funds are fiscal and accounting entities that are segregated for the purpose of carrying
out specific activities.
3 major categories of funds used by state and local governments - ANSWER-governmental, proprietary
and fiduciary.
Governmental Funds - ANSWER-Traditionally been used to account for the general services provided to
the public. These services include public safety, health, transportation, social services, recreation and the
administration of the government.
focus of governmental funds for reporting purposes - ANSWER-use the current financial resources
measurement
focus and modified accrual basis of accounting. Expendable assets are used to pay for current liabilities.
The difference between assets and liabilities is fund balance.
Type of accounting used for governmental funds - ANSWER-current financial resources measurement
focus and modified accrual basis of accounting.
Types of Government Funds - ANSWER-General Fund, Special Revenue Funds, Capital Projects Funds,
Debt Service Funds, Permanent Funds
General Fund purpose - ANSWER-- to account for and report all financial resources, except those
required to be accounted for in another fund.
- Considered most important fund.
, - Most administrative services of the government should be accounted for in the general fund.
General Fund sources of revenues & expenditures - ANSWER-• Property taxes, sales taxes and income
taxes are the most common revenue sources used to finance government activities.
• Permit and license fees may also be significant resources that are used to finance services.
• Other major revenue sources are intergovernmental grants and shared revenues.
• Fines, forfeitures and investment earnings may be substantial for some governments
Special Revenue Funds Purpose - ANSWER-should be used to account and report for the proceeds of
specific revenue sources (other than major capital projects) that are restricted or committed to
expenditure for specified purposes.
Single Audit Act/OMB A-123 Audit - ANSWER-organization-wide audit or examination of an entity that
expends $750,000 or more of Federal assistance (commonly known as Federal funds, Federal grants, or
Federal awards) received for its operations
Capital Projects funds - ANSWER-used to account and report for financial resources that are restricted,
committed, or assigned to expenditure for major capital facilities and further capital assets, other than
those financed by proprietary and trust funds. Provide for efficient management of resources for
multiple-year capital projects
Debt Service Funds - ANSWER-is required to be used when legal requirements mandate the use, or when
financial resources are being accumulated to make principal and interest payments, such as through
earmarking tax revenue
Permanent Funds - ANSWER-A permanent fund is used to account for governments receive bequests
from individuals stipulating that donated resources are to be invested by the government. The bequest
restricts the use of resources so that only the earnings, and not the principal, may be used for activities
that benefit the government.
Proprietary Funds - ANSWER-proprietary funds generally match revenues to expenses that result directly
and jointly from the same transactions or other events, such as sales and cost of goods sold. Proprietary
funds require a fee or user charge. Similar to the private sector.
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