Superficial Drill Down on Governmental Accounting Sheet Six

Superficial Drill Down on Governmental Accounting Sheet Six: 

• Often times, in encumbrance accounting, credit appropriations control to record budgeted appropriations 
• Outstanding encumbrance would be reflected as either committed or assigned fund balance
• Fund balance in excess of the amount of the encumbrance would be considered assigned by being accounted for in a separate governmental fund (i.e. capital project fund).
• GASB 1400.107, footnote 9 - a change from depreciation to the modified approach should be reported as a change in an accounting estimate, and this change would not require a restatement of prior periods.
• Fund accounting segregates resources according to the purpose(s) for which they may be used. Budgetary accounting maintains a record of the remaining appropriation authority available for specific purposes at any point in time. 
• Interfund receivables and payables should be - reported as amounts due to and due from other funds.
• Enterprise funds are used to report any activities for which a fee is charged.
• The general fund is the primary governmental fund, used to account for all financial resources not required to be accounted for in another fund.
• Internal service funds are proprietary funds used to account for any activity that provides goods or services to another fund, department, or agency of the primary government and its component units or to another government on a cost-reimbursement basis.
• Special revenue funds are governmental funds used to account for proceeds of specific revenue sources legally restricted to expenditure for specific purposes. 
• Proprietary fund financial statements include statement of net position; statement of revenues, expenses, and changes in net position; and statement of cash flows. 
• Property taxes are considered an “imposed nonexchange revenue.”
• The comprehensive annual financial report (CAFR) has a template specified by the GASB - letter of transmittal is specified as part of the introduction section. 

cc: Reporting