BUS 5436 Governmental and Nonprofit Accounting

Lecture: Introduction to Governmental and Nonprofit Accounting

Lecture: The Environment and Foundation of Governmental Accounting

Outcomes

• Describe the key unique characteristics of government and nonprofit (G&NP) organizations
• Discuss the major types of G&NP organizations and their importance in our economy
• Discuss the similarities and differences between profit-seeking and G&NP organizations
• Identify the key distinguishing characteristics, concepts and objective of G&NP accounting and financial reporting
• Discuss the users and uses of government financial statements
• Identify authoritative resources of financial reporting standards for various types of G&NP organizations and the level of authority (hierarchy) of various pronouncements and guides
• Visualize and discuss the major overall aspects of the GASB state and local government financial reporting, including the dual perspective of government-wide and fund financial statements
• Identify the measurement focus and basis of accounting used for each category of funds and the financial statements required for funds of each category
• Analyze the effects of transactions on the proprietary fund and governmental fund categories and on the General Capital Assets and General Long-Term Liabilities accounts
• Discuss typical budgetary accounting and reporting requirements
• Compare specific types of funds in each fund category and different uses of each fund type in each category
• Explain the financial reporting requirements for a government’s basic financial statements and its comprehensive annual report

Lecture: General Fund and Special Revenue Funds

Outcomes

• Discuss the differences and similarities between the General Fund and Special Revenue Funds
• Explain measurement funds and basics of accounting used for these funds
• Analyze fact situations and prepare journal entries to record most common General Fund and Special Revenue Fund transactions and events, including inter-fund activity
• Prepare adjusting and closing entries for the General Fund and Special Revenue Funds
• Define and identify special items and extraordinary items
• Identify the five fund balance reporting classifications
• Prepare General Fund and Special Revenue Fund GAAP-based financial statements

Lecture: Budgeting, Revenue Accounting and Expenditure Accounting

Outcomes

• Utilize basic budgetary accounting and reporting concepts, requirements and practices
• Explain the role of the budget in governmental fund planning, budgetary control, budgetary accounting, and budgetary reporting
• Identify commonly used budgeting terminology, approaches and recommended practices
• Explain the concept of budgetary control points
• Discuss the basic procedures involved in preparing and adopting a budget
• Compare the differences between Budgetary Fund Balance and GAAP Fund Balance
• Determine when various types of governmental fund revenues should be recognized and reported
• Identify the four categories of non-exchange transactions and when to recognize related assets and revenues
• Discuss and apply modified accrual revenue recognition criteria in both simple and complex situations
• Identify accounting for the levy, collection, revenue recognition, and enforcement of property taxes and other taxes
• Account for and report governmental fund investment income in accordance with GAST Statements 31 and 40
• Distinguish and account for various types of intergovernmental revenues, including pass-through grants and other grants, entitlements, shared revenues and payments in lieu of taxes
• Differentiate classification of and accounting for various other types of governmental fund revenues and other (nonrevenue) financing sources
• Account for and report changes in revenue accounting principles and error corrections
• Define expenditures as used in governmental fund accounting and reporting
• Apply governmental fund expenditure recognition guidance
• Account for personal services costs, materials and supplies (purchases and consumption method), and prepayments in governmental funds
• Account for typical debt service and capital outlay expenditures
• Determine accounting and reporting for capital leases, claims and judgments, compensated absences, and pension and other postemployment benefit expenditures in governmental funds
• Account for and report changes in expenditure accounting principles and error corrections

Lecture: Capital Projects Funds and Debt Service Funds

Outcomes

• Explore the nature and purposes of Capital Projects Funds (CPFs) and when CPFs are used
• Identify the typical capital project financing sources, how many Capital Projects Funds are required and the life cycle of a Capital Projects Fund
• Determine the costs that should be charged to the Capital Projects Fund
• Describe Capital Projects Fund accounting for general long-term debt issuances
transactions and events
• Maintain detailed general ledger journal entries to record typical Capital Projects Fund
• Prepare Capital Projects Fund financial statements
• Explain the basic nature and purposes of Debt Service Funds and the types of liabilities serviced through Debt Service Funds
• Determine when Debt Service Funds are required and when debt service on general long-term liabilities may be accounted for in other funds
• Identify when expenditures for debt service on general long-term liabilities (GLTL) are recognized
• Observe the conditions under which governments are permitted to accrue to GLTL principal and interest expenditures before maturity
• Record debt service transactions and prepare Debt Service Fund financial statements
• Identify accounting and reporting for special assessment Debt Service Funds
• Record and report refunding of general long-term liabilities

Lecture: General Capital Assets, General Long-Term Liabilities, Permanent Funds and Enterprise Funds

Outcomes

• Explain how governments maintain the general capital assets (GCA) and general long-term liabilities (GLTL) information
• Identify various types of transactions affecting general capital assets and general long-term liabilities
• Compare the relationships between governmental funds, general capital assets and general long-term liabilities
• Report general infrastructure capital assets properly
• Apply the modified approach for accounting for infrastructure capital assets
• Identify financial reporting requirements for GCA and GLTL
• Identify the nature and use of Permanent funds and how to report them
• Identify transactions that affect both governmental funds, GCA and GLTL
• Determine what activities should be reported using Enterprise Funds
• Describe the proprietary fund accounting principles
• Journalize typical proprietary fund transactions
• Identify the formats and classifications of proprietary fund financial statements
• Prepare the proprietary fund statements

Lecture: Internal Service Funds, Trust Funds and Agency Funds

Outcomes

• Describe the nature and usage of Internal Service Funds (ISF)
• Identify the accounting principles that apply to ISF
• Analyze the pricing policies and methods that are used in ISF
• Prepare basic journal entries for various types of ISF
• Prepare ISF financial statements, including combining statements
• Identify the unique aspects of accounting for ISF
• Discuss the circumstances in which fiduciary funds are used to report assets held by governments in fiduciary relationships
• Define and distinguish among the four types of fiduciary funds
• Prepare Agency Fund financial statements
• Prepare Trust Fund financial statements
• Account for common transactions that affect more than one fund and/or general capital assets and general long-term liabilities

Lecture: Financial Reporting

Outcomes

• Identify a government’s basic financial statements
• Implement the format and content of the fund financial statements and the government-wide financial statements
• Analyze the concept and content of required supplementary information (RSI)
• Identify a government’s major funds and how to prepare its fund financial statements
• Distinguish program revenues from general revenues
• Identify the unique reporting provisions for infrastructure capital assets
• Identify the required information components of Management’s Discussion and Analysis (MD&A)
• Recognize the types of notes to the financial statements required for governments
• Identify reporting requirements for special purpose governments
• Explain the types of worksheet adjustments needed to derive governmental activities data for the government-wide financial statements from the governmental funds financial statement data
• Explain the types of worksheet adjustments needed to derive business-type activities data for the government-wide financial statements from Enterprise Funds financial statement data
• Compare the two-worksheet approach and the one-worksheet approach to deriving governmental activities data
• Prepare government-wide financial statements using information derived in the conversion worksheets
• Prepare the required reconciliations of fund financial statements to government-wide financial statements

Lecture: Financial Reporting and the Comprehensive Annual Financial Report

Outcomes

• Explain the nature and contents of the three major sections of a Comprehensive Annual Financial Report
• Describe the relationships between combining financial statements and the basic financial statements
• Determine the combining statements that a government needs to present in its Comprehensive Annual Financial Report
• Explain how to determine whether a government should treat an associated entity as a component unit
• Identify which component units should be blended and which should be discretely presented
• Compare the differences between blending and discrete presentation
• Explain the differences between and among the reporting requirements for related organizations, jointly governed organizations, and joint ventures