...CHAPTER 3: GOVERNMENTAL OPERATING STATEMENT ACCOUNTS; BUDGETARY ACCOUNTING OUTLINE |Number |Topic |Type/Task |Status | | | | |(re: 15/e) | |Questions: | | | | |3-1 |Distinguishing characteristics of fund-based and government-wide |Identify and describe |New | | |financial statements | | | |3-2 |Distinguishing direct and indirect expenses |Define and describe |New | |3-3 |Statement of activities format |Describe |3-2 revised | |3-4 |Program and general revenue |Distinguish |Same | |3-5 |Extraordinary compared with special items |Define and compare |3-5 expanded | |3-6 ...
Words: 5171 - Pages: 21
...Questions 1-3, 1-4, 1-5, 1-6, 1-8, and 1-10 1-3. The GASB has responsibility for setting accounting and reporting standards for both state and local governments and governmental not-for-profit organizations. The FASB has responsibility for setting accounting and reporting standards for business organizations and nongovernmental not-for-profit organizations. The FASAB has the responsibility of setting accounting and reporting standards for the agencies and departments of the federal government. 1-4. The museum’s accountant is wrong because the Fayette Rodeo Museum is a nongovernmental not-for-profit organization which means that it is independent of governments which means it can only follow FASB standards. Governmental not-for-profit organizations are the ones who follow the standards established the GASB. 1-5. Interperiod equity refers to the concept of measuring whether current year revenues are sufficient to pay for the services that provided in the current year. It is significant because it helps to assess whether future taxpayers will have to pay for the burdens that were previously provided. If revenues are not sufficient, then someone has to pay. 1-6. Operational accountability uses government-wide financial statements, along with those of proprietary funds and fiduciary funds. Fiscal accountability uses governmental fund financial statements. Operational accountability’s measurement focus is based on the flow of economic resources, while fiscal is based on the...
Words: 369 - Pages: 2
...2011 Fresno County average of 16% and businesses within the city are poised to take advantage of the area’s highest per-capita taxable spending. Clovis is a full-service city and has been operating with a budget surplus for greater than ten fiscal years. Through a combination of appropriate spending controls, fee and tax level adjustments, and reserves for future emergencies, the city ended 2011 with total assets of $900M (up 2% over the prior year) and total liabilities of $253M (down 3% over the prior year). The accounting department within the City of Clovis has received annual recognition via a Certificate of Achievement for Excellence in Financial Reporting for the preceding twenty three years. Additionally, for the July 1, 2011 budget document, the city received the Government Finance Officers Association Distinguished Budget Presentation award for proficiency in: Policy Document Inclusion, Financial Plan competence, City Operations guides, Governmental Communications. Part 1: CAFR Analysis As is the case with all full-service cities, the City of Clovis prepares an annual Comprehensive Annual Financial Report (CAFR). The CAFR is divided into major sections, as follows: * Introductory Section * Financial Section * Statistical Section * Single Audit Section The Introductory Section contains information such as the Letter of Transmittal, city Organization Chart, and the listing of principal officials. The information in this section is presented...
Words: 2742 - Pages: 11
...expenditures, and then payment is disbursed. Public sector entities face both advantages and disadvantages of budgetary control. It is a challenge for such entities to operate within their proposed budgets due to budget cuts, budget surprises, and unforeseen costs, such as emergencies. This is evident in cities such as Detroit, Michigan; Atwater, California; and Fresno California. The most relevant implication of budgetary control was seen in the government shutdown, which occurred on October 1st, and last 16 days. This paper examines the importance of budgetary control and its challenges. Introduction Non-profit and governmental agencies are categorized as public sector entities, with the primary objective of serving the public rather than making money. In America, governmental agencies “exist at the federal, state, and local levels”, and both governmental and non-profit organizations serve a wide variety of functions at levels of society (Wilson, Reck...
Words: 3746 - Pages: 15
...Contributions Receivable-Temporarily Restricted in the amount of $1,000,000. B. Record a debit to Contributions Receivable-Temporarily Restricted in the amount of $500,000. C. Not make a journal entry until the conditions of the agreement have been met. D. Either A. or C. are permissible, depending on the museum’s established policy. Question 2: Sharon Helper, a local CPA, volunteered her time to develop a new computerized accounting system for an after-school development program for disadvantaged children. If Sharon had not volunteered her time, it would have been necessary for the organization to hire an accountant for this project. The value of Sharon’s time devoted to this project should be recorded as: A. Contributed revenue. B. A supporting services expense. C. Neither A. nor B. are correct. D. Both A. and B. are correct. Question 3: A nongovernmental not-for-profit animal shelter receives contributed services from the following individuals valued at their normal billing rates: Veterinarian provides volunteer animal care $8,000 Board members with accounting expertise volunteer to prepare books for audit 4,500 Registered nurse volunteers as receptionist 3,000 Teacher provides volunteer dog walking 2,000 What amount should the shelter record as contribution revenue? A. $12,500 B. $8,000 C. $11,000 D. $14,500 1 Question 4: The Maryville Cultural Center recently conducted a successful...
Words: 1165 - Pages: 5
...Governmental Accounting Standards Board 34 What would our country like without any rules and regulations or even our Declaration of Independence? We would probably be one giant disorganized country. There are times when we feel that our government can over regulating, but some fail to understand that the government is the people and society. Society has created organizations that even monitor our own government. One organization is the Governmental Accounting Standards Board (GASB). This is “an authoritative accounting and financial reporting standard-setting body for government entities” (Granof 2002). Their main objective is to ensure that financial reporting needs are meeting for the financial users. This goal is very difficult to accommodate to all users. Therefore, GASB continues to create new standards for financial reporting for state and local governments. One of the recent major obstacles for GASB was to produce standards for full accrual basis accounting for all state, local, and not-for-profit entities. This would allow for cost/loss in an entity’s capital assets and infrastructure. This can be distributed over the useful years of life instead of the initial year. In using the cash method, the value of physical assets and the depreciation on infrastructures such as roads, bridges, sewers, and drainage systems is not shown on the books. On average, most infrastructures decline in usefulness or value over a period of 20 to 50 years. This new standard thus creates...
Words: 774 - Pages: 4
...Chapter 1: Introduction to Accounting and Financial Reporting for Governmental and Not-for-Profit Entities 1–3.Matching. Place the abbreviations corresponding to the appropriate reporting attribute(s) in the spaces provided for each financial statement. Include all that apply. Activities or Funds Basis of Accounting Governmental activities—GA Accrual—A Business-type activities—BTA Modified accrual—MA Governmental funds—GF Measurement Focus Proprietary funds—PF Economic resources—ER Fiduciary funds—FF Current financial resources—CFR (1) Activities or Funds Reported, (2) Basis of Accounting, (3) Measurement Focus Financial Statements Statement of net assets – government-wide: (1) GA & BTA (2) A (3) ER Statement of activities – government-wide: (1) GA & BTA (2) A (3) ER Balance Sheet – governmental funds: (1) GF (2) MA (3) CFR Statement of revenues, expenditures, and changes in fund balances – governmental funds: (1) GF (2) MA (3) CFR Statement of net assets – proprietary funds: (1) GA & BTA & PF (2) A (3) ER Statement of revenues, expenses, and changes in fund net assets – proprietary funds: (1) GA & BTA & PF (2) A (3) ER Statement of cash flows – proprietary funds: (1) GA & BTA & PF (2) A (3) ER Statement of fiduciary net...
Words: 688 - Pages: 3
...Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis Paper Accountants or individuals, who put the financial statements together, need the knowledge of the two different accounting standards board. The Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) differ from each other and are similar in different ways and individuals need knowledge of the differences and similarities. GASB and FASB allow use of the modified accrual basis of accounting or the full accrual accounting for government and not-for-profit organizations. Knowing the differences between the two methods and the meaning are important. GASB and FASB Similarities GASB and FASB accounting are sets of objectives that proprietorship, government, and not-for-profit organizations follow in preparing financial statements. According to Weygandt (2008, p. 17) “both the GASB and the FASB have established objectives that circumscribe the functions of financial reports.” GASB and FASB objectives show whether a company is making enough profit to pay for expenses throughout the year, allows investors information to decide whether to invest or not, and how well the company budget complied throughout the year. Also, the two accounting standard boards show whether management is complying with all aspects of the objectives. GASB and FASB accounting have differences that individuals need knowledge about to prepare financial statements...
Words: 642 - Pages: 3
...ACC 430 Governmental Accounting (Online) Chapter 1 Questions 1-2. Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board’s Why Governmental Accounting and Financial Reporting Is-and Should be-Different. 1. Organizational Purposes-A governments organizational purpose is to provide public services for the well-being of citizens regardless of profit. Whereas a for-profit business’s organizational purpose is to generate a profit for the owner while providing services to the public. 2. Sources of Revenues-A for-profit business’s source of revenue is its net income (total revenues (sales)-total expenses). A government’s source of revenue is mainly from taxes. 3. Potential for Longevity-State and local governments rarely go out of business, because they are given the ability to tax. For this reason, governments view accounting operations on a long-term basis instead of short-term. Governments focus on maintaining services and how to meet future demands. 4. Relationship with Stakeholders-Since a Governments main source of revenue is taxes, which are paid by citizens; they are required to account for these public funds. Whereas a business can use its resources as it chooses. 5. Role of Budget-Business’s prepare a budget for planning and control purposes and are normally not provided to creditors or investors. Governments on the other...
Words: 1140 - Pages: 5
...“Why Governmental Accounting and Financial Reporting is—And Should Be—Different” The paper “Why Governmental Accounting and Financial Reporting is—And Should Be—Different” compares governmental accounting and financial reporting to that of the approach used in for-profit business enterprises. It also states specific reasons why governments should be different. There are environmental differences between governments and businesses that call for a different approach. First, governments have different purposes for their operations. For-profit entities strive to create wealth and to meet return on investment goals. While governments on the other hand are actually trying to enhance or maintain quality of life with services that are dictated by public policy goals. They also must consider efficiency, effectiveness, and economy when they evaluate public policy. Secondly, governments and for-profit business entities differ in the way they generate revenue. Governments generate income through involuntary taxes. Customers of for-profit business entities have a choice of what services they purchase and where they buy. The same does not apply for the governmental customer. The users of their reports also differ. Citizens and their elected representatives are users of government reports. They are as interested in the “why” as they are the “how much” when they read a financial report. They use governmental financial reporting to support their discussions of public policy such as what...
Words: 383 - Pages: 2
...Financial Accounting Foundation (FAF) is the organization that has over sight over the FASB, GASB, FASAC and GASAC. Under each of their standards, they both have to look over all letters, comments and concerns before making any decisions and in some cases can be made available to the public. Here is where they differ, the FASB has the authority to make and set any new accounting standards to be put in place, which will be recognized by the Securities and Exchange Committee (SEC). The GASB standards are not recognized to be any formal law or ruling, but its standards can be enforced by the individual states that choose the right to. The GASB is solely public and there is unlimited access. In fact, the GASB encourages the public to become heavily involved in their meetings. You can find some records of what will be discussed through the GASB website on the say the meeting will take place. The FASB reports all nongovernment information that will help private entities make the correct accounting decisions. Under the respective standard process, the FASB houses 7 rules that must be in place, the most important seemingly to be that the Board cares and puts the issues of the stakeholders/shareholders first. As with the GASB, they send those to gather information that can be later studied and hope to be improved. Modified accrual accounting is used to measure the flow of the financial resources. It shows the combination of cash and full basis accrual. Full accrual accounting is recognized...
Words: 393 - Pages: 2
...THE EFFECT OF BUDGETARY CONTROL ON EFFCTIVENESS OF NON GOVERNMENTAL ORGANISATIONS IN KENYA REBECCAH NYAMBURA KIMANI A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE FINANCE, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI OCTOBER 2014 DECLARATION I declare that this project is my original work and has not been submitted for examination in any other university. Signed………………………………………Date…………………………………… REBECCAH NYAMBURA D63/71147/2014 This project has been submitted for examination with my approval as the university supervisor Signed………………………………………Date…………………………………… MR. MIRIE MWANGI Lecturer, Department of Finance and Accounting School of Business University of Nairobi ACKNOWLEDGEMENT I am deeply indebted to all those who in their own way contributed to successful completion of this study. First and foremost I thank the almighty God, to whom all knowledge, wisdom and power belong for sustaining me in good health, sound judgment and strength to move on and complete my master’s studies. Special appreciation goes to my supervisor for his dedication, guidance, valuable suggestion and ideas throughout the course of this project. Without his enormous support this study would not have been successful. Thanks to my family who always inspired me in every step to accomplish this study. I am eternally grateful for your love, encouragement and support in all my endeavors. DEDICATION I dedicate this project to my...
Words: 12812 - Pages: 52
...I have over 20 years experience in accounting , management and auditing gained from : • Post conflict and conflict geographical locations in Burundi ( specifically Ngozi, Sudan, Uganda : • Environmental disasters in Tanzania; Mozambique and Kenya • HIV affected and infected communities in Botswana and The Zambia • Donor-funded projects, financial institutions and Government organizations. I have been involved in Financial management and management audits of various organizations. This include Project Planning and Management, development of Accounting Systems and internal control systems, Budget Management on Donor funded Non-Governmental Organizations, Project Management, Finance and Management Accounting and Staff Performance appraisal, both private and public sector Organizations. Currently am managing the Regional Finance and Administration as supervisor in the East and Southern Africa Region and I have been responsible for coming up with policies and procedures that are in line with the organizations’ long term strategies. This involved review of existing structures, and Advising management on possible implementation procedures and processes and the costs/benefits associated with them. I have therefore had to work with consultants and different authorities in order to accomplish these goals. The job is based in Uganda but I receive reports from all the above mentioned countries through email on a monthly basis by the 5th of every month, import into ACCPAC ...
Words: 826 - Pages: 4
...Comparing the Financial Environments Yvonne Young Tricia Jenkins HCS/577 July 20 2015 Comparative Summary For Profit Organization, Not for Profit Organization, Government Organization Home Health Doctors without Borders, World Health Organization Financial structure * For profit organization (Home Health) 1. Combining profitable business with meaningful opportunities helping clients maintain quality of life. Contribution of staff and how well the operation of business is performed and the efficiency, and the effectiveness of services needed to patients reliability of assistance and their autonomy. 2. Announcing budget by identifying the employees receiving budget information determine employees such as managers to be aware of budget announcement choosing dates for groups to receive budgetary information. 3. Write overview of the budget illustrating Major changes from previous budget Incorporate a list of action points needed to perform 4. Compile a packet for employees including Action list Budget 5. Send out emails notifications and memos based on the home health organization announcing the release of budget information 6. Gather for meeting with employees dispersing information and schedule accordingly. * Not for Profit Organization (Doctors without Borders) 1. Fundraising and administrative cost with independency of growth through individuals and investments...
Words: 608 - Pages: 3
..."soft funding" or "crowd funding". Funding that facilitates the exchange of equity ownership in a company for capital investment via an online funding portal as per the Jumpstart Our Business Startups Act (alternately, the "JOBS Act of 2012") (U.S.) is known as "hyper funding". Funds can be allocated for either short-term or long-term purposes. Types of funds Grants are made to non-profit organizations by development assistance agencies and foundations. Usually grants do not have to be repaid. Grant money is available to enhance country institutional capacity, to support governmental and non-governmental institutions and to finance project formulation, policy reform and sector management and development. Grants are provided by bilateral donors, multilateral grant aid institutions, United Nations organizations and specialized agencies, international financing institutions, international non-governmental organizations, the private sector, foundations and charity organizations. Loans, unlike grants, have to be repaid. Loans can be obtained from most banks, but development assistance agencies may provide loans for development priorities at preferential rates of interest, with an initial interest free period, repayable over the long term. To justify a loan a strong business case must be made. Loans are made to borrowing countries that are further up the development ladder and to...
Words: 2832 - Pages: 12
