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GOVERNMENTAL AND NOT-FOR-PROFIT ACCOUNTING

CIP CODE AREA: 52.0301.00

COURSE LEVEL: Advanced (Junior Level)

COURSE NUMBER: ACNT 2330 (Workforce Education Course Number)

COURSE TITLE: Governmental and Not-For-Profit Accounting

CREDIT HOURS: 3; Lecture Hours: 3

PREREQUISITE: ACCT 2301 or equivalent AND ACNT 1171

METHOD OF PRESENTATION: 3 lecture hours each week

COURSE DISCRIPTION: This course is an introduction to fund accounting, emphasizing general, special revenue, capital improvement, debt service, trust agency, enterprise, intragovernmental, and other fund concepts used by state, municipal, and other governmental entities. The course includes an introduction to the preparation and analysis of CAFR. This course will also provide an introduction to governmental auditing concepts and procedures, including the Yellow Book and Single Audit Act.

This course is accepted by the Texas State Board of Public Accountancy as one of the 30 hours of upper division accounting courses.

Required Texts/Materials:
For required texts/materials, go to http://www3.austincc.edu/it/textbooks/courses.asp?dept=ACCO

Proposed Learning Outcomes:

Knowledge:

Explain generally accepted accounting principles as they apply to economic transactions of governmental and non-profit entities.

Skills:

Identify accounting standards and procedures for governmental and non-profit entities..

Apply generally accepted accounting principles in the preparation of reports for public institutions

SCANS (SECRETARY’S COMMISSION ON ACHIEVING NECESSARY SKILLS):

Course SCANS Competencies for Governmental Accounting – ACNT 2330.

Please go to http://www.austincc.edu/mkt/scans.htm#whatis for a complete definition and explanation of SCANS. This list summarizes the SCANS competencies addressed in this particular course.

INTERPERSONAL

2.1 Participates as a Member of a Team

2.2 Teaches Others

INFORMATION

3.2 Organizes and Maintains Information

3.3 Uses Computers to Process Information

BASIC SKILLS

6.2 Writing

6.6 Speaking

TECHNOLOGY

5.2 Applies Technology to Task:

THINKING SKILLS

7.2 Decision Making

7.3 Problem Solving

PERSONAL QUALITIIES

8.1 Responsibility

Academic Freedom Statement: Each student is strongly encouraged to participate in class. In any classroom situation that includes discussion and critical thinking, there are bound to be many differing viewpoints. These differences enhance the learning experience and create an atmosphere where students and instructors alike will be encouraged to think and learn. On sensitive and volatile topics, students may sometimes disagree not only with each other but also with the instructor. It is expected that faculty and students will respect the views of others when expressed in classroom discussions.

Scholastic Dishonesty Statement: Acts prohibited by the College for which discipline may be administered include scholastic dishonesty, including but not limited to cheating on an exam or quiz, plagiarizing, and unauthorized collaboration with another in preparing outside work. Academic work submitted by students shall be the result of their thought, research or self-expression. Academic work is defined as, but not limited to tests, quizzes, whether taken electronically or on paper; projects, either individual or group; classroom presentations, and homework” . Electronic devices may not be use for exams unless specifically authorized by the instructor. Penalties for scholastic dishonesty will depend upon the nature of the violation and may range from lowering a grade on one assignment to an F in the course and/or expulsion from this institution.

Student Discipline Statement: Classroom behavior should support and enhance learning. Behavior that disrupts the learning process will be dealt with appropriately, which may include having the student leave class for the rest of that day. In serious cases, disruptive behavior may lead to a student being withdrawn from the class. ACC's policy on student discipline can be found in the Student Handbook.

Students with Disabilities Statement: Each ACC campus offers support services for students with documented physical or psychological disabilities. Students with disabilities must request reasonable accommodations through the Office for Students with Disabilities on the campus where they expect to take the majority of their classes. Students are encouraged to do this three weeks before the start of the semester”

Grade Change Policies: Click on this link to view the policy.

INSTRUCTIONAL METHODOLOGY:

The objectives of this course will be met by incorporating a variety of instructional methods. These include lecture, group activities, student presentations, discussion papers, class quizzes, class exercises, Spreadsheet and word processing activities, and online research

COURSE RATIONALE:

The goals and objectives of this course prepare students for (1) completing degree requirements, (2) obtaining or improving job skills, (3) qualifying for a business or Accounting job, (4) working as an entrepreneur, (5) fulfilling personal goals, and/or (6) understanding financial statements and the basic accounting process.

COURSE OBJECTIVES:

Chapter	Objectives
1	Describe the key unique characteristics of government and nonprofit (G&NP) organizations Discuss the major types of G&NP organizations and their importance in our economy Discuss the similarities and differences between profit-seeking and G&NP organizations Understand the key distinguishing characteristics, concepts, and objectives of G&NP accounting and financial reporting Determine whether an entity is a government or a nongovernment organization for financial reporting purposes, and whether the GASB or the FASB is the primary standards-setting body for a specific G&NP organization Identify and discuss the users and uses of government financial information Identify the authoritative sources of financial reporting standards for various types of G&NP organizations and the level of authority (hierarchy) of various pronouncements and guides
2	Visualize and discuss the major overall aspects of the GASB state and local government financial reporting model, including the ‘dual perspective’ government-wide and fund basic financial statements Define fund, identify and explain the three broad categories of funds—governmental, proprietary, and fiduciary – and identify the specific types of funds of each fund category and the financial statements required for each Identify the measurement focus and basis of accounting used for each type of fund financial statement and for the government-wide financial statements Analyze the effects of transactions on each fund type and on the General Capital Assets and General Long-Term Liabilities accounts Discuss typical budgetary accounting and reporting requirements, and explain why SLGs account on their budgetary basis during the year and adjust to the GAAP basis at year end for annual financial reporting purposes Understand the various revenue, expenditure, expense, and interfund activity classifications used in government financial reporting Explain the basis financial reporting requirement for a government’s basic financial statements and its comprehensive annual financial report
3	Explain the role of the budget in governmental fund planning and control Understand commonly used budgeting terminology, approaches, and recommended practices Understand the concept of budgetary control points Discuss the basis procedures involved in preparing and adopting a budget Understand basic budgetary accounting and reporting practices and requirements
4	Discuss the differences and similarities between the General Fund and Special Revenue Funds Explain the measurement focus and basis of accounting used for these funds Understand and prepare budgetary accounting entries Analyze and prepare journal entries to record most common General Fund and Special Fund transactions, including interfund activity Understand the use of and accounting for encumbrances Prepare General Fund and Special Revenue Fund financial statements
5	Determine when various types of governmental fund revenues should be recognized and reported Identify the four categories of nonexchange transactions, the points at which related assets should be recognized, and the point at which revenues should be recognized Discuss and apply modified accrual revenue recognition criteria in both simple and complex situations Understand accounting for the levy, collection, and enforcement of property taxes, as well as other tax revenues Distinguish and account for the various types of intergovernmental revenues, including shared revenues and payments in lieu of taxes Understand classification of and accounting for various other types of governmental fund revenues
6	Define expenditures as used in governmental fund accounting and reporting Understand and apply governmental fund expenditure recognition guidance Account for personal services costs, materials and supplies (purchases and consumption methods), and prepayments in governmental funds Understand the multiple classifications of expenditures used in governmental fund accounting and reporting Understand how to account for allocations, allotments, and appropriations revisions
7	Understand the nature and purposes of Capital Project Funds (CPFs) and when CPFs are used Understand the typical capital projects financing sources, how many Capital Projects Funds are required, and the life cycle of a CPF Determine the costs that should be charged to a CPF
8	Understand the basic nature and purposes of Debt Service Funds (DSF) and the types of liabilities serviced through DSF Understand when DSF are required and the circumstances in which debt service on general long-term liabilities may be accounting for in other funds Understand when expenditures for debt service on general long-term liabilities (GLTL) are recognized Understand the conditions that must exist for governments to be permitted to accrue GLTL principal and interest expenditures before maturity
9	Understand one method for maintaining the general capital assets and general long-term liabilities information that governments need for government-wide financial reporting purposes Understand the relationships between governmental funds and the general capital assets and general long-term liabilities accounts
10	Determine what activities should be reported using Enterprise Funds Understand the proprietary fund accounting principles Understand proprietary fund reporting for intergovernmental grant revenues and debt refundings Understand the formats and classifications of the proprietary fund financial statements Understand the three components of proprietary fund net assets
11	Understand the nature and usage of Internal Service Funds Understand the accounting principles that apply to Internal Service Funds
13	Identify the financial statements in a government’s basis financial statements Understand the format and content of the government-wide financial statements and the fund financial statements Understand the concept and content of required supplementary information (RSI) Identify a government’s major funds an how to prepare its fund financial statements Distinguish program revenues from general revenues Understand the required information components of MD&A Understand the types of notes to the financial statements required for governments
16	Understand the sources for GAAP for nongovernmental not-for-profit organizations Explain the basis of accounting and the financial statements required for nongovernmental not-for-profit organizations Distinguish between and among the three net asset classes Understand the timing of recognition and the classification of revenues and expenses of nongovernment not-for-profit organizations Understand the reporting of restricted contributions and restricted investment income Account for and report the satisfaction of donor-imposed temporary restrictions on the use of resources Prepare journal entries for common transactions of nongovernment not-for-profit organizations Prepare nongovernment non-for-profit organization financial statements

Course Evaluation/Grading System, How to Reach the Instructor, and Course Outline/Calendar:
Refer to the Instructor’s syllabus for this course.