Essentials of Accounting for Governmental and Not-For-Profit Organizations

Cover
Title
Copyright
Preface
Contents
CHAPTER ONE: INTRODUCTION TO ACCOUNTING AND FINANCIAL REPORTING FOR GOVERNMENTAL AND NOT-FOR-PROFIT ORGANIZATIONS
	Generally Accepted Accounting Principles
		Sources of Generally Accepted Accounting Principles
		Definition of Government
	Objectives of Accounting and Financial Reporting
		Objectives of Accounting and Financial Reporting for the Federal Government
		Objectives of Financial Reporting by Not-for-Profit Entities
		Objectives of Accounting and Financial Reporting for State and Local Governmental Units
	State and Local Government Financial Reporting
		Comprehensive Annual Financial Report
		Measurement Focus and Basis of Accounting
		Fund Structure for State and Local Government Accounting and Reporting
		Number of Funds Required
		Budgetary Accounting
CHAPTER TWO: OVERVIEW OF FINANCIAL REPORTING FOR STATE AND LOCAL GOVERNMENTS
	The Governmental Reporting Entity
	Reporting by Major Funds
	Overview of the Comprehensive Annual Financial Report (CAFR)
		Introductory Section
		Financial Section: Auditor\'s Report
		Management\'s Discussion and Analysis (MD&A)
		Statement of Net Position
		Government-wide Statement of Activities
		Governmental Funds: Balance Sheet
		Governmental Funds: Statement of Revenues, Expenditures, and Changes in Fund Balance
		Proprietary Funds: Statement of Net Position
		Proprietary Funds: Statement of Revenues, Expenses, and Changes in Fund Net Position
		Proprietary Funds: Statement of Cash Flows
		Fiduciary: Statement of Fiduciary Net Position
		Fiduciary: Statement of Changes in Fiduciary Net Position
		Notes to the Financial Statements
		Required Supplementary Information Other Than MD&A
		Combining Statements
		Statistical Information
	Special-Purpose Governments
	Public Colleges and Universities
	Other Governmental Not-for-Profit Organizations
CHAPTER THREE: MODIFIED ACCRUAL ACCOUNTING: INCLUDING THE ROLE OF FUND BALANCES AND BUDGETARY AUTHORITY
	Modified Accrual Accounts
		Balance Sheet Accounts
		Financial Statement Activity Accounts
		Budgetary Accounts
	Expenditure Cycle
	Revenue Recognition for Nonexchange Transactions
	Summary
	Appendix: Budgetary Accounting Illustrated
		Budgets and Budgetary Accounts
		Recording the Budget
		Accounting for Revenues
		Accounting for Encumbrances and Expenditures
		Budget Revisions
		Budgetary Comparison Schedule
		Classification of Estimated Revenues and Revenues
		Classification of Appropriations and Expenditures
CHAPTER FOUR: ACCOUNTING FOR THE GENERAL AND SPECIAL REVENUE FUNDS
	Overview of Modified Accrual Accounting
	Interfund Transactions
		Interfund Loans
		Interfund Services Provided and Used
		Interfund Transfers
		Interfund Reimbursements
	Illustrative Case—General Fund
		Use of Budgetary Accounts
		Recording the Budget
		Re-establishment of Encumbrances
		Recording Prior-Year Property Taxes as Revenues
		Tax Anticipation Notes Payable
		Payment of Liabilities as Recorded
		Encumbrance Entry
		Recording Property Tax Levy
		Collection of Delinquent Taxes
		Collection of Current Taxes
		Other Revenues
		Repayment of Tax Anticipation Notes
		Recognition of Expenditures for Encumbered Items
		Payrolls and Payroll Taxes
		Payment on Account and Other Items
		Correction of Errors
		Amendment of the Budget
		Interfund Transactions
		Write-off of Uncollectible Delinquent Taxes
		Reclassification of Current Taxes
		Accrual of Interest and Penalties
		Deferral of Property Tax Revenue
		Special Item
		Preclosing Trial Balance
		Closing Entries
		Year-End Financial Statements
	Illustrative Case—Special Revenue Fund
		Motor Fuel Tax Revenues
		Expenditures for Road Repairs
		Reimbursement to General Fund
		Reimbursement Grant Accounting
		Closing Entry
		Year-End Financial Statements
	Recognition of Inventories in Governmental Funds
	Summary
CHAPTER FIVE: ACCOUNTING FOR OTHER GOVERNMENTAL FUND TYPES: CAPITAL PROJECTS, DEBTSERVICE, AND PERMANENT
	Capital Projects Funds
		Illustrative Case
	Other Issues Involving Acquisition of Capital Assets
		Acquisition of General Fixed Assets by Lease Agreements
		Construction of General Fixed Assets Financed by Special Assessment Debt
	Debt Service Funds
		The Modified Accrual Basis—As Applied to Debt Service Funds
		Additional Uses of Debt Service Funds
		Debt Service Accounting for Serial Bonds
		Illustrative Case—Regular Serial Bonds
	Other Issues Involving Payment of Long-Term Debt
		Debt Service Accounting for Deferred Serial Bonds
		Debt Service Accounting for Term Bonds
		Debt Service Accounting for Capital Lease Payments
		Bond Refundings
	Permanent Funds
	Financial Reporting for Governmental Funds
		Financial Statements—Governmental Funds
	Summary
CHAPTER SIX: PROPRIETARY FUNDS
	Internal Service Funds
		Establishment and Operation of Internal Service Funds
		Illustrative Case—Supplies Fund
	Other Issues Involving Internal Service Funds
		Risk Management Activities
		Implications for Other Funds
	Enterprise Funds
		Illustrative Case—Water Utility Fund
	Proprietary Fund Financial Statements
		Statement of Net Position
		Statement of Revenues, Expenses, and Changes in Fund Net Position
		Statement of Cash Flows
		Accounting for Municipal Solid Waste Landfills
		Pollution Remediation Costs
	Summary
CHAPTER SEVEN: FIDUCIARY (TRUST) FUNDS
	Agency Funds
		Tax Agency Funds
		Accounting for Tax Agency Funds
		Financial Reporting for Agency Funds
	Private-Purpose Trust Funds
		Accounting for Investments
		Illustrative Case—Private-Purpose Trust Funds
		A Note about Escheat Property
	Investment Trust Funds
	Public Employee Retirement Systems (Pension Trust Funds)
		Accounting and Reporting for Defined Benefit Pension Plans
		Additional Disclosures
		Other Postemployment Benefit Trust Funds
		A Note about IRS 457 Deferred Compensation Plans
	A Final Comment on Fund Accounting and Reporting
	Appendix: Employer Reporting for Pensions
		Reporting of Pension Liabilities
		Reporting of Pension Expenditure—Governmental Funds
		Reporting of Pension Expense—Accrual Based Statements
		A Final Note: Pension Discount Rates
CHAPTER EIGHT: GOVERNMENT-WIDE STATEMENTS, CAPITAL ASSETS, LONG-TERM DEBT
	Conversion from Fund Financial Records to Government-Wide Financial Statements
	Capital Asset–Related Entries
	Long-Term Debt–Related Entries
		Adjusting to Convert Revenue Recognition to the Accrual Basis
		Adjusting Expenses to the Accrual Basis
		Adding Internal Service Funds to Governmental Activities
		Eliminating Interfund Activities and Balances within Governmental Activities
		Worksheet to Illustrate the Adjustments
	Government-Wide Financial Statements
		Statement of Net Position
		Statement of Activities
		Required Reconciliation to Government-wide Statements
	Summary
	Appendix: Accounting for Capital Assets and Long-Term Debt in Governmental Activities
	Accounting for General Capital Assets, Including Infrastructure
		The Modified Approach for Reporting Infrastructure
		Collections
		Asset Impairment
	Accounting for Long-Term Debt
		Types of General Long-Term Debt
		Debt Disclosures and Schedules
CHAPTER NINE: ACCOUNTING FOR SPECIAL-PURPOSE ENTITIES, INCLUDING PUBLIC COLLEGES AND UNIVERSITIES
	GASB Statement 34 Reporting Rules for Special-Purpose Entities
		Reporting by Special-Purpose Local Governments Engaged in Governmental Activities
		Reporting by Special-Purpose Local Governments Engaged Only in Business-type Activities
		Reporting by Special-Purpose Local Governments Engaged Only in Fiduciary-type Activities
	Accounting and Financial Reporting for Public Colleges and Universities
		The Environment of Public Higher Education
		Accounting and Financial Reporting for Public Institutions of Higher Education
		Illustrative Case—Northern State University—Beginning Trial Balance
		Illustrative Case—Journal Entries
		Illustrative Case—Closing Entries
		Illustrative Case—Financial Statements
	Summary
CHAPTER TEN: ACCOUNTING FOR PRIVATE NOT-FOR-PROFIT ORGANIZATIONS
	Organizations Covered in This Chapter
	Overview of Not-for-Profit Accounting
		Three Classes of Net Assets
		Financial Reporting
		Note Disclosures
		Accounting for Contributions, Including Reclassifications of Net Assets
		Reporting of Expenses and Assets
		Special Topics: Accounting for Contributions
	Illustrative Transactions and Financial Statements
		Beginning Trial Balance
		Transactions
		Financial Statements
		Alternative Procedure for Recording Fixed Assets
	Performance Evaluation
		Mergers and Acquisitions
	Summary of Not-for-Profit Accounting and Reporting
CHAPTER ELEVEN: COLLEGE AND UNIVERSITY ACCOUNTING—PRIVATE INSTITUTIONS
	Overview of Private College and University Accounting
		Financial Statements
	Illustrative Transactions and Financial Statements
		Illustrative Transactions
		Illustrative Financial Statements for Private Colleges and Universities
	Split-Interest Agreements
	Summary—Private College and University Reporting
CHAPTER TWELVE: ACCOUNTING FOR HOSPITALS AND OTHER HEALTH CARE PROVIDERS
	Accounting and Reporting Requirements of the Health Care Guide
		Financial Statements
		Revenues
		Classifications
	Illustrative Transactions and Financial Statements
		Beginning Trial Balance
		Illustrative Statements for Private Sector Not-for-Profit Health Care Entities
	Financial Reporting for Governmental Health Care Entities
	Financial Reporting for Commercial (For-Profit) Health Care Entities
	Summary and Conclusions Regarding Health Care Accounting and Reporting
CHAPTER THIRTEEN: AUDITING, TAX-EXEMPT ORGANIZATIONS, AND EVALUATING PERFORMANCE
	Governmental Auditing
		The Single Audit Act and Amendments
		The Sarbanes-Oxley Act
	Tax-Exempt Organizations
		Applying for Tax-Exempt Status
		Federal Filing Requirements
		State Filing Requirements
		Unrelated Business Income Tax (UBIT)
		IRS Oversight
		Summary and Some Conclusions Related to Exempt Entities
	Evaluating Performance
		Analysis of Not-for-Profit Organization Financial Statements
		Analysis of State and Local Government Financial Statements
		Service Efforts and Accomplishments Reporting
CHAPTER FOURTEEN: FINANCIAL REPORTINGBY THE FEDERAL GOVERNMENT
	Federal Government Accounting Standards
	Financial Reporting by Federal Agencies
		Balance Sheet
		Statement of Net Cost
		Statement of Changes in Net Position
		Statement of Budgetary Resources
		Statement of Custodial Activity
	Consolidated Financial Report of the U.S. Government
	Budgetary and Proprietary Accounting
		Budgetary Accounts
		Proprietary Accounts
	Summary of Federal Government Reporting
	Appendix: Illustrative Example
Glossary: Governmental and Not-for-Profit Accounting Terminology
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