Financial statements and other schedules required for funds must be prepared in accordance with generally accepted accounting principles. The governing body of any local government may, by resolution, establish one or more petty cash accounts, imprest accounts or revolving accounts in a bank or credit union to assist in the administration of any activities in which the local government is authorized by law to engage. A public officer or employee of the local government who oversees directly the operation of the enterprise fund.
For each general fund transaction/transfer, select what qualifies as an interfund loan. Either as a liability, if short term debt, or as proceeds of bonds if long term debt, not as revenues. Unconditional contributions, whether promised or received as cash, are recognized as revenue in the period received.
Accounting for Governmental & Nonprofit Entities Jacqueline Reck 18th – Test Bank
The local government is in violation of any covenant in connection with any debt issued by the local government. The local government has incurred debt beyond its ability to repay.
Reciprocal interfund activity includes interfund loans and interfund services provided and used. Refer to INTERFUND LOANS and INTERFUND SERVICES PROVIDED AND USED.
c. A purchase order is approved.
If a local government has money from any other source available to pay such expenses, that money must be applied to the expenses before any money from the revenue source specified by statute. Adjustment of allowed revenue from taxes ad valorem upon assumption by local government of function or provision of service previously performed by another local government pursuant to agreement between local governments. The allowed revenue from taxes ad valorem attributable to the new local government for the cost of performing the function must equal the total of the amounts subtracted for the prior cost of performing the function from the allowed revenue from taxes ad valorem of all the predecessor local governments. A local government need not file an augmented budget for an enterprise or internal service fund with the Department of Taxation but shall include the budget augmentation in the next quarterly report. For which the governing body has decided that a periodic determination of revenues earned, expenses incurred and net income is consistent with public policy and is appropriate for capital maintenance, management control, accountability or other purposes. In the case of a claim for a refund of property tax which has been authorized and approved in the manner provided in subsection 3, the county treasurer shall make a refund to the applicant in the amount claimed if the claim is made within 3 years after the tax was due.
- If any person shall feel aggrieved by the action taken by any board of county commissioners on any such claim, an action may be prosecuted thereon for and on behalf of any such person against the county as on other rejected county claims.
- APPRAISE – To make an estimate of value of an asset, for example an investment or capital asset, particularly of the value of property.
- GRANTS – Awards of financial assistance, including cooperative agreements, in the form of money, or property in lieu of money, to an eligible grantee.
- The auditor obtains this evidential matter through inspection, observation, inquiries, and confirmations with third parties.
- When resources are under control of the governing board and not specifically restricted by an outside donor.
- BOOK VALUE – The net amount at which an asset or asset group appears on the books of account, as distinguished from its market or intrinsic value.
- Proprietary funds recognize expenses using the accrual basis of accounting (i.e., when the related liability is incurred) without regard for the timing of the payment.
In governmental funds, it is referred to as fund balance. In proprietary funds, it is referred to as net position.
Questions not included in Flash Cards:
A voucher payable is recorded. A purchase order is approved. May be allocated between or among accounting periods or may be accounted for as expenditures of the period of acquisition. On October 1, Eder Fabrication borrowed $60 million and issued a nine-month, 12% promissory note. Interest was payable at maturity. Prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at December 31, the end of the reporting period.
Within 60 days after the delivery of the annual audit to the local government, the governing body shall advise the Department what action has been taken to prevent recurrence of each violation of law or regulation or to correct each continuing violation. The Department shall evaluate the local government’s proposed plan of correction and, if the plan is satisfactory, shall so advise the governing body. If the plan is not satisfactory, the Department shall advise the governing body that it deems the plan inadequate and propose an alternative plan. Within 30 days thereafter the governing body shall report its assent to the Department’s plan or request a hearing before the Nevada Tax Commission. This hearing must be held at the next meeting of the Commission, but the hearing must not be held more than 90 days after such a request is received. The determination of the Nevada Tax Commission is final. After the expiration of the term of a plan approved by the Committee on Local Government Finance pursuant to subsection 10, the provisions of subsection 1 apply to the local government that adopted the plan.
Print or Email Purchase Orders
NON-DEPRECIABLE CAPITAL ASSETS – Capital assets that are inexhaustible or where the useful life does not diminish or expire over time, such as land and land improvements. Infrastructure assets reported using the modified approach to depreciation are also not depreciated. Refer to MODIFIED APPROACH TO DEPRECIATION. LIBRARY RESOURCES – Exhaustible items used for reference or lending such as books, periodicals, and microfilm that have a useful life greater than one year. Library resources are capitalized, depreciated and controlled by a recognized cataloging system. JUDGMENT – An amount to be paid or collected by the state as the result of a court decision, including a condemnation award in payment for private property taken for public use. INTERNAL CONTROL FRAMEWORK – An integrated set of policies and procedures, based on a common structure of components, concepts and definitions, designed to assist management to achieve its goals and objectives.
- The local government has not corrected violations of statutes or regulations adopted pursuant thereto as noted in the audit report.
- As used in this section, “fee for a business license” does not include a tax imposed on the revenues from the rental of transient lodging.
- Current assets of this character serve as the basis for classification of fund balance as non spendable.
- Accrued expenditures are expected to be paid in a subsequent accounting period.
- Notwithstanding the provisions of subsection 1, a local government may deposit into the appropriate account a check or other negotiable instrument which it determines is intended as payment for an account receivable.
- If the plan is not satisfactory, the Department shall advise the governing body that it deems the plan inadequate and propose an alternative plan.
In most situations it would be the airport closest to the traveler’s residence. For out-of-state destinations, the closest airport that provides direct out-of-state flights may be considered the local airport for this purpose. LIQUIDATION – Payment of debt, cancellation of encumbrance, or conversion into cash. LEGAL OPINION – The opinion of an official authorized to render it (e.g., attorney general). In the case of governmental bonds, the opinion of a specialized bond attorney as to the legality of a bond issue. ISSUING BANK – An individual, company, firm, or combination thereof with which the state of Washington contracts for purchase card services.
Chapter 17 Flashcards Preview
Forty percent of those proceeds must be divided among the county and the cities within the county as provided in this subparagraph. If it is desired to augment the budget of any fund other than a fund described in paragraph or an enterprise or internal service fund, the governing body shall adopt, by majority vote of all members of the governing body, a resolution providing therefor at a regular meeting of the body. In lieu of the services otherwise authorized or required to be provided by the local government.
- DEBT SERVICE FUNDS – Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term obligation principal and interest.
- In the case of community and technical colleges, such travel expenses may be paid for applicants being considered for full-time faculty positions or administrative employees in supervisory positions.
- CHANGE ACCOUNTS – Accounts used solely for making change in across-the-counter cash transactions.
- ART COLLECTION – An individual work of art or group of items of original artwork such as paintings, sculptures, craftwork or other materials commonly identified as a work of art.
- The receipt and proper expenditure of money received pursuant to a grant awarded by an agency of the Federal Government.
- Payments of interest represent expenses to be accounted for on the accrual basis of accounting.
Vendors include, but are not limited to, retail businesses, consultants, contractors, manufacturers, credit card companies. A vendor may be an individual, corporation, non-profit organization, federal government, or federal agency, local government or local agency, another state or another state agency, a Washington state agency, or Indian nation. For travel reimbursement purposes, a vendor may include an employee, a board member, or volunteer. RECEIVABLES – Amounts due from private persons, businesses, agencies, funds, or governmental units that are expected to be collected in the form of moneys, goods, and/or services. INTERNAL SERVICE FUNDS – Internal service funds are used to report activities that provide goods or services to other funds, departments or agencies of the state on a cost reimbursement basis.
Imposed nonexchange revenues result from assessments imposed on nongovernmental entities, other than assessments on exchange transactions. Property taxes, ad valorem taxes on personal property, and fines are common examples. A receivable is usually recognized at the time an enforceable legal claim arises.
County auditor to audit apportionments and keep record of receipts and expenditures; quarterly statements. Notification of county auditor concerning uncollectible account; application for removal of information concerning uncollectible accounts from records of county. In the opinion of the board of county commissioners, or the county treasurer in those cases in which the county treasurer is authorized to make a refund, the applicant for refund has a just cause for making the application and the granting of the refund would be equitable. The https://online-accounting.net/ board of county commissioners is authorized to examine, audit and allow to the sheriff or a constable the actual fare paid by such officer in the conveyance or transportation of any one or more prisoners committed to the county jail by a justice of the peace of the county. The difference between a “shared” capital asset and one that “essentially serves all functions” is the number of functions involved. As the number of functions increases, the ease, practicality, and usefulness of assigning depreciation to those functions decreases.
b. Budgetary Fund Balance—Assigned for Encumbrances.
Only the enterprise fund’s equitable share of those expenses may be treated as expenses of the enterprise fund and allocated to it pursuant to paragraph of subsection 1. “Emergency” means a sudden, unexpected occurrence the encumbrance account of a governmental unit is debited when that involves clear and imminent danger and requires immediate action to prevent or mitigate loss of life or damage to health, property or essential public services. The term does not include a natural disaster.
A budgeted excess of revenues of appropriations should be?
Refer to ACCRUAL BASIS and ACCRUE. Which of the following statements is correct with respect to GASB Statement No. 54 regarding committed funds? A) Committed funds are those that are designated as committed through ordinance or resolution by the government’s highest level of authority. B) These constraints are easily changed by administrators. C) This is constraint is imposed by law and may not be changed without amendment of the law. D) Committed funds may be redesignated to uncommitted in the event of a budget shortfall. Sales taxes, income taxes, and motor fuel taxes are examples of which class of nonexchange transactions?