Presentation is loading. Please wait.

Presentation is loading. Please wait.

Fund Accounting -- Government Entities Hartwell C. Herring III University of Tennessee.

Published by Modified over 9 years ago

Similar presentations

Presentation on theme: "Fund Accounting -- Government Entities Hartwell C. Herring III University of Tennessee."— Presentation transcript:

1 Fund Accounting -- Government Entities Hartwell C. Herring III University of Tennessee

2 The Four Governmental Funds l General Fund l Special Revenue Funds l Capital Projects Funds l Debt Service Funds

3 Accounting for Governmental Funds l The Measurement Focus is Flow of Current Financial Resources l The Basis of Accounting for Governmental Funds is Modified Accrual accounting - accruals are made for operating items but debt service and capital expenditures are charged to operations -- there are no long- term assets and liabilities

4 General Fund l Primary operating fund for general government operations l Resources -- tax revenues, intergovernmental transfers, grants, debt l Outflows -- –Expenditures for operations, debt service, capital –Transfers to other funds

5 Special revenue l Established for legally restricted resources such as road use and fuel taxes, wildlife resources management, and Federal entitlement programs l Accounting procedures are identical to the GF

6 Capital Projects l Expendable fund used to account for construction of general capital projects (not fund projects) l Uses modified accrual accounting l When the project is completed, the asset and related debt are recorded in Account Groups and the fund is closed

7 Debt Service l A fund established to make principal and interest payments on General Long Term Debt l Note that only General Long Term Debt is paid from the DS fund. The long term debt of proprietary funds is in the proprietary fund l DS funds use “when due” accounting

8 There are Two Account Groups l General Fixed Asset Account Group l General Long Term Debt Account Group

9 Accounting in Account Groups l Account groups are just listings of assets or liabilities in a double entry format l Account groups are not funds because they have no resources available for expenditure

10 There are Two Types of Proprietary Funds l Enterprise Funds l Internal Service Funds

11 Enterprise Funds l Enterprise Funds are established to account for business type activities that are run by a government. l Examples include Utilities, Airports, Golf Courses, and Transit Companies l These funds use full accrual -- flow of economic resources measurement focus

12 Internal Service l These are established to account for activities that sell goods and services to other areas of government. l Examples include Motor Pools, Data Processing, and Self Insurance Pools l These funds also use full accrual -- flow of economic resources measurement focus

13 There are Four Types of Fiduciary Funds l Expendable Trust Funds l Non-Expendable Trust Funds l Pension Trusts l Agency Funds

14 Expendable Trusts l Account for gifts that can be spent -- either principle and interest or interest from a non- expendable trust l These funds use modified accrual accounting

15 Non-expendable trusts l A full accrual fund for gifts that are permanently restricted by external donors l Only the income can be spent l Income is transferred to an expendable trust for disbursement

16 Pension trusts l Pension assets of governmental organizations are a significant factor in our economy l State and Local Government pension plans are generally fairly fully funded defined benefit plans l Some government and most nonprofit workers have defined contribution plans

17 Agency Funds l These funds are established for funds that the government holds in trust l The principles examples are pass-through situations and tax agency funds

18 Government C&U Funds An overview

19 Two current funds l Current unrestricted -- accounts for operations financed by unrestricted sources –Tuition –Most appropriations –Unrestricted current gift income –Sales of services l Current restricted -- accounts for externally restricted income for research and other items

20 Four Plant Funds l Unexpended -- money for new plant l Renewals and replacements -- money to replace plant l Retirement of indebtedness -- money to retire long term debt l Investment in plant -- the plant assets and the long-term debt related to those assets

21 Numerous trusts l Permanent endowment l Temporary endowment l Life income l Annuity l Agency

22 Government College and University Accounting l Generally modified accrual is used l Reporting is fragmented into funds l The financial statements are difficult to use and understand l No attempt is made to measure many critical performance variables

Download ppt "Fund Accounting -- Government Entities Hartwell C. Herring III University of Tennessee."

Similar presentations

College and University Accounting—Private Institutions

College and University Accounting—Private Institutions
Chapter 2 Principles of Accounting and Financial Reporting for State and Local Governments McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies,

Chapter 2 Principles of Accounting and Financial Reporting for State and Local Governments McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies,
Chapter Seventeen Accounting for State and Local Governments (Part II) Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or.

Chapter Seventeen Accounting for State and Local Governments (Part II) Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or.
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Accounting for Colleges and Universities Chapter 15.

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Accounting for Colleges and Universities Chapter 15.
© The McGraw-Hill Companies, Inc., 2004 Slide 11-1 McGraw-Hill/Irwin Chapter Eleven Accounting for State and Local Governments (Part 1)

© The McGraw-Hill Companies, Inc., 2004 Slide 11-1 McGraw-Hill/Irwin Chapter Eleven Accounting for State and Local Governments (Part 1)
Governmental & NPO Accounting-2008 1-1 Session 1-Government Accounting--Basics n GASB and other key terms n Uniqueness of government operations n Objectives.

Governmental & NPO Accounting Session 1-Government Accounting--Basics n GASB and other key terms n Uniqueness of government operations n Objectives.
Advanced Accounting, Fourth Edition

Advanced Accounting, Fourth Edition
McGraw-Hill/Irwin©2007, The McGraw-Hill Companies, All Rights Reserved Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter.

McGraw-Hill/Irwin©2007, The McGraw-Hill Companies, All Rights Reserved Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter.
Fiduciary Funds n Used to account for funds held by Govt entity as a Trustee or Agent n Uses Accrual basis of accounting and Economic Resources measurement.

Fiduciary Funds n Used to account for funds held by Govt entity as a Trustee or Agent n Uses Accrual basis of accounting and Economic Resources measurement.
© The McGraw-Hill Companies, Inc., 2001 Slide 16-1 Irwin/McGraw-Hill 16 C H A P T E R Accounting for State and Local Governments (Part One)

© The McGraw-Hill Companies, Inc., 2001 Slide 16-1 Irwin/McGraw-Hill 16 C H A P T E R Accounting for State and Local Governments (Part One)
McGraw-Hill/Irwin©2007, The McGraw-Hill Companies, All Rights Reserved Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter.

McGraw-Hill/Irwin©2007, The McGraw-Hill Companies, All Rights Reserved Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter.
Unique Aspects of Accounting Local Governments – Part I:

Unique Aspects of Accounting Local Governments – Part I:
McGraw-Hill/Irwin©2007, The McGraw-Hill Companies, All Rights Reserved Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter.

McGraw-Hill/Irwin©2007, The McGraw-Hill Companies, All Rights Reserved Essentials of Accounting for Governmental and Not-for-Profit Organizations Chapter.
2 Chapter Fund Accounting.

2 Chapter Fund Accounting.
Chapter 10 Accounting for Fiduciary Funds and Permanent Funds.

Chapter 10 Accounting for Fiduciary Funds and Permanent Funds.
Fund Accounting Jim Corkill Accounting Services & Controls November 2011.

Fund Accounting Jim Corkill Accounting Services & Controls November 2011.
Chapter 17 Financial Reporting Issues. C172 The New Reporting Model GASB Statement No. 34 Basic Financial Statements – and Management’s Discussion and.

Chapter 17 Financial Reporting Issues. C172 The New Reporting Model GASB Statement No. 34 Basic Financial Statements – and Management’s Discussion and.
GOVERNMENTAL ACCOUNTING: What You Don’t Know Could Hurt You Karen Tenace CPA, CMA City of Tucson.

GOVERNMENTAL ACCOUNTING: What You Don’t Know Could Hurt You Karen Tenace CPA, CMA City of Tucson.
Advanced Accounting, Fourth Edition

Advanced Accounting, Fourth Edition
GASB Statement No. 34 Cliff Notes Laurie L. Piccirillo, Business Manager Brockway Area School District Dr. David M. Piper, Assistant to Superintendent.

GASB Statement No. 34 Cliff Notes Laurie L. Piccirillo, Business Manager Brockway Area School District Dr. David M. Piper, Assistant to Superintendent.

Similar presentations

Ads by Google