ACCT 5390 Ch. 3 Lecture Notes WQ2019-1.docx

Expenditures may be further classified by their

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Expenditures may be further classified by their “ character”; i.e., current operating, capital outlay, debt service, or intergovernmental transfer. Minimum classification is by fund and source Appropriations could be made at any expenditure level along this continuum There is nothing similar to encumbrances in commercial accounting Exercise 3-29
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Miscellaneous J/E freezes funds for what was ordered Reverse encumbrance for original encumbered amount, not expenditure amount GASB requires budgetary comparison schedules in the footnotes to the CAFR for the general fund and for major special revenue funds . Predictable expenditures, such as salaries/benefits, do not require an encumbrance. Record expenditure based on actual invoice amount 4-line JE See p. 4:15- 16 Exercise 3-30; 3-31
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Final adopted budget is an important influence on the annual proper tax levy rate Property taxes are usually the largest revenue source of a local government’s general fund In-Class Group Exercises as time permits: E3-25, E3-26, E3-28, E3-25, E3-29, E3-30, E-31, and E3-22 Note: the lower expenditure (invoice) amount resulted in freeing-up an additional $1K in appropriation capacity More common $.0489 per $1.00 of AV or 48.90 per $1,000 of AV e.g., senior citizens Also see Example 3.1 in e.g., church Exercise 3-22 Whose purpose is to track available appropriation capacity
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  • Summer '18
  • Capital Expenditure, Separation of Powers

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