Chap5 - Accounting for Other Governmental Funds CHAPTER 5...

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Accounting for Other Governmental Funds 5-18 CHAPTER 5Accounting for Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent 5-1. THE SOLUTION TO THIS AND THE FIRST EXERCISE OF CHAPTERS 1THROUGH 8WILL DIFFER FROM STUDENT TO STUDENT,ASSUMING EACH HAS A DIFFERENT CAFR. 5-2.IN DETERMINING THE APPROPRIATE FUND TO RECORD THE TRUST,IT IS IMPORTANT TO DETERMINE:(1)WHETHER THE TRUST BENEFITS THE GOVERNMENT OR ITS CITIZENRY OR (2)ALTERNATIVELY WHETHER THE TRUST BENEFITS INDIVIDUALS,PRIVATE ORGANIZATIONS OR OTHER GOVERNMENTS. IF THE TRUST BENEFITS INDIVIDUALS,PRIVATE ORGANIZATIONS OR OTHER GOVERNMENTS,IT SHOULD BE REPORTED IN THE PRIVATE-PURPOSE TRUST FUND,A FIDUCIARY TYPE FUND. IF THE TRUST BENEFITS THE GOVERNMENT OR ITS CITIZENRY,IT IS IMPORTANT TO DETERMINE WHETHER THE TRUST PRINCIPAL MUST BE MAINTAINED OR ALTERNATIVELY,IF IT CAN BE EXPENDED FOR PURPOSES SUPPORTED BY THE TRUST.IF THE TRUST PRINCIPAL MUST BE MAINTAINED,THE TRUST SHOULD BE REPORTED IN A PERMANENT FUND.IF THERE IS NO REQUIREMENT TO MAINTAIN THE PRINCIPAL,IT SHOULD BE REPORTED IN A SPECIAL REVENUE FUND. 5-3.AT THE INCEPTION OF THE LEASE,THE PRESENT VALUE OF THE MINIMUM LEASE PAYMENTS SHOULD BE REPORTED AS A CAPITAL EXPENDITUREAND AN OTHER FINANCING SOURCEWITHIN AN APPROPRIATE GOVERNMENTAL TYPE FUND (TYPICALLY THE GENERAL FUND OR A CAPITAL PROJECTS FUND).RENTAL PAYMENTS WOULD TYPICALLY BE REPORTED AS INTEREST AND PRINCIPAL EXPENDITURES IN THE GENERAL FUND OR A DEBT SERVICE FUND. AT FISCAL YEAR END,THE LEASED ASSET SHOULD BE REFLECTED IN THE GOVERNMENT-WIDE STATEMENT OF NET POSITION AS A CAPITAL ASSET AT NET BOOK VALUE (I.E.THE PRESENT VALUE OF THE MINIMUM LEASE PAYMENTS AT THE INCEPTION OF THE LEASE LESS ACCUMULATED DEPRECIATION).SIMILARLY,THE UNPAID BALANCE OF THE LEASE OBLIGATION SHOULD BE REPORTED IN THE GOVERNMENT-WIDE STATEMENT OF NET POSITION AS A LIABILITY.
Accounting for Other Governmental Funds 5-19 5-4(A) SPENCERCOUNTY COURTHOUSEANNEXCAPITALPROJECTSFUND GENERALJOURNAL CLOSINGENTRY DEBITSCREDITSOTHER FINANCING SOURCES-PROCEEDS OF BONDSOTHER FINANCING SOURCES-PREMIUM ON BONDSINTERGOVERNMENTAL REVENUECAPITAL EXPENDITURES OTHER FINANCING USES-TRANSFERS OUTFUND BALANCE2,000,000 45,000 400,000 1,850,000 45,000 550,000 BUDGETARY FUND BALANCE RESERVE FOR ENCUMBRANCESENCUMBRANCES85,000 85,000 5-4(B) SPENCERCOUNTY COURTHOUSEANNEXCAPITALPROJECTSFUND STATEMENTOFREVENUES,EXPENDITURES,AND CHANGESINFUNDBALANCE YEARENDEDJUNE30,2015 REVENUES:INTERGOVERNMENTAL GRANT$400,000 EXPENDITURES: CAPITAL OUTLAY1,850,000 EXCESS (DEFICIENCY)OF REVENUES OVER EXPENDITURESOTHER FINANCING SOURCES (USES) PROCEEDS OF BONDSBOND PREMIUMTRANSFERS OUT(1,450,000) 2,000,000 45,000 (45,000) TOTAL OTHER FINANCING SOURCES (USES) 2,000,000 NET CHANGE IN FUND BALANCE550,000 FUND BALANCE,JAN.1,2015 --0--FUND BALANCE,DEC.31,2015 $550,000
Accounting for Other Governmental Funds 5-20 5-4(C) SPENCERCOUNTY COURTHOUSEANNEXCAPITALPROJECTSFUND BALANCESHEETASOFDECEMBER31,2015 CASH$900,000 DUE FROM STATE GOVERNMENT200,000 TOTAL ASSETS$1,100,000 L

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