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REPORTING UNIT
Each Governmental organization is described , ; as Reporting Unit and
prepares financial statements used by, , citizens creditors and others to evaluate the financial position and operating results for the purposes of making public policy and .financing decisions
FUND
In governmental accounting the resources of the government are accounted for in "funds“.
A fund is a self-balancing set of accounts, segregated for specific purposes in accordance with laws and regulations or special restrictions and limitations
TYPES OF FUNDS Governmental Funds
General Fund Special Revenue Funds Capital Projects Funds Debt Service Funds
Proprietary Funds Enterprise Funds Internal Service Funds
Fiduciary Funds Trust and Agency Funds
TYPES OF FUNDS – General Fund To account for all current
financial resources except those to be .accounted for in another fund
– Special Revenue Fund To account for the ( proceeds of specific revenue sources other
than fiduciary sources or major capital) projects that are legally restricted to
.expenditure for specified purposes – Capital Projects Funds To account for current
financial resources to be used for the acquisition or construction of major capital
( facilities other than those financed by .)propietary funds and trust funds
TYPES OF FUNDS – Debt Service Funds To account for the
, accumulation of resources for and the , - payment of general long term debt principle
.and interest – Enterprise Funds To account for operations
T hat are financed and operated in a manner ; similar to private business enterprises or
W here the governing body has decided that , periodic determination of revenues earned
, / expenses incurred and or net income is , appropriate for capital maintainance public
, , , policy management control accountability or .other purposes
TYPES OF FUNDS – Internal Service Funds To account for the
financing of goods or services provided by one department or agency to other departments
.or agencies of the governmental unit – Trust and Agency Funds To account for
assets held by a governmental unit in a , trustee capacity or as an agent for individuals , private organizations other governmental
.unit E xpendable trust funds N onexpendable trust funds P ension trust funds A gency funds
MEASUREMENT FOCUS OF THEFUNDS
?What is being measured Financial Re : sources Focus is on inflows and
outflows and balances of financial assets and .liabilities at year end
: Capital Maintenance Focus is on how well the .governmental unit maintained its assets
ACCOUNT GROUPS
The accounting and reporting entities for fixed - assets and long term liabilities are reffered to
.as account groups - :General Fixed Asset Account Group To
account for all general fixed assets of a .governmental unit
- : General Long Term Debt Account Group To - account for all unmatured general long term .liabilities of the governmental unit
S - ingle entries forced into self balancing set of, accounts and therefore have no
.measurement focus
ACCOUNTING CHARACTERISTICS COMMON TO GOVERNMENTAL
FUNDS
C .reated in accord with legal requirements L egal constraints on the raising of revenue
, and the expenditure of revenue are in most, jurisdictions set forth in a legally adopted
.budget A .ccount for only financial resources A ccount for only those liabilities to be paid
.from fund assets D ifference between fund assets and fund
.liabilities is called the fund equity
ACCOUNTING CHARACTERISTICS COMMON TO PROPRIETARY FUNDS
E stablished in accord with enabling, legislation and their operations and policies
.are subject to legislative oversight S hould prepare budgets as an essential
element in the management planning and .control processes
A ccount for all assets used in the fund.operations
A - ccount for current and long term liabilities to / be serviced from fund operations and or to .be repaid from fund assets
ACCOUNTING CHARACTERISTICS COMMON TO FIDUCIARY FUNDS
A ll funds are used to account for assets held .by a governmental unit as a trustee or agent
A gency and Expendable Trust funds are created and operated in the same manner as
.the four types of governmental funds Nonexpendable and Pension Trust funds are
created and operated in the same manner as ..the two types of proprietary funds
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