A1. Net debt equaB total general obligation debt minus the amount available in debt service
funds tor debt payment The general obligation debt figure should be found in the liability
section ofthe govemment-wide Statement of NetAssets. The amount availabl
CAPITAL PROJECTS FUNDS
-A major source of funding for capital projects funds is the issuance of long-term
-Capital projects funds may receive grants from other governmental units, proceeds of dedicated taxes,
transfers from other funds, gifts from i
FIDUCIARY TRUST FUNDS
-Fiduciary funds are used to account for assets held by a government acting as a
trustee or agent for entities external to the governmental unit, including individuals, organizations, and
other governmental units.
-Fiduciary funds ar
-Auditing of governmental and not-for-profit entities has much in common with auditing of business
enterprises, including making judgments about internal controls, selectively testing transactions,
assessing the fairness of financial
CONVERSION FROM FUND FINANCIAL RECORDS TO GOVERNMENT-WIDE
- The fund-basis financial statements for the governmental funds are entered directly
into the left-hand column.
-General capital assets, general long-term debt, and internal s
OVERVIEW OF MODIFIED ACCRUAL ACCOUNTING
-Governmental fund financial statements are prepared on the modified accrual
basis of accounting.
-Under modified accrual accounting, revenues are recognize
MODIFIED ACCRUAL ACCOUNTS
Balance Sheet Accounts
-Long-term liabilities are not reported in governmental funds.
-Deferred Inflows of Resources represent balance sheet accounts with credit balances, similar to
-Deferred Outflows of Resources r
INTERNAL SERVICE FUNDS
-As governments become more complex, efficiency can be improved if services
used by several departments or funds or even by several governmental units are
combined in a single department.
-Activities that produce goods or services t
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
-Accounting Principles evolve over time as people find certain practices useful for decision
-The Governmental Accounting Standards Board published
THE GOVERNMENTAL REPORTING AGENCY
-One of the most fundamental accounting issues is identifying the accoutning entity.
-For many years, separate annual reports were issued for each legal entity.