Government Accounting Overview June 2015

AN OVERVIEW OF GOVERNMENT ACCOUNTING

CHRIS FARRELL, CPA

JUNE 20151

See notes below

Government

2

1) Elections

3

2) Unilateral Dissolution

4

Audio available on YouTube

3) Taxes

5


Public Sector

6


GASB

7


Hierarchy

8


WHO ARE THE USERS?

•CITIZENS

•ELECTED OFFICIALS

9


How Did You Spend My Money?

10


Where Did You Get The Money?

11


ERMA and Accrual

12


CFRM and

Modified Accrual

13


THINK “INCOME STATEMENT”

Modified Accrual

Accrual14


REVENUE RECOGNITION

ACCRUAL

•EARNED

MODIFIED ACCRUAL

•MEASURABLE

•AVAILABLE

15


EXPENSE RECOGNITION

ACCRUAL

•EXPENSE

•INCURRED

•MATCHED

MODIFIED ACCRUAL

•EXPENDITURE

•INCURRED

•LIABILITY

16


THINK “BALANCE SHEET”

CFRM

ERMA17


FIXED ASSETS

ERMA

•CAPITALIZE

•DEPRECIATE

CFRM

•EXPENDITURE

18


LONG TERM DEBT

ERMA

•LIABILITY

•PRINCIPLE PAYMENT

CFRM

•FINANCING SOURCE

•EXPENDITURE

19


Budgets

20


1) Legal Authority to

Spend21


2) Mandatory for General

Fund22


3) Reported in Financial Statements

23


Funds24


TYPES

•GOVERNMENTAL

•PROPRIETARY

•FIDUCIARY25


GOVERNMENTAL•GENERAL

•SPECIAL REVENUE

•CAPITAL PROJECTS

•DEBT SERVICE

•PERMANENT

26


PROPRIETARY FUNDS

•ENTERPRISE

•INTERNAL SERVICE

27


FIDUCIARY FUNDS

•AGENCY

•PRIVATE PURPOSE

•INVESTMENT TRUST

•PENSION TRUST

28


Education