Accounting for Governmental and
- Identify and explain the characteristics that
distinguish governmental and not-for-profit entities from for-profit
- Identify the authoritative bodies responsible for
setting financial reporting standards for (1) state and local governments,
(2) the federal government, and (3) not-for-profit organizations.
- Contrast and compare the objectives of financial
reporting for (1) state and local governments, (2) the federal
government, and (3) not-for-profit organizations.
- Explain how management's discussion and analysis
(MD&A), basic financial statements, and required supplementary
information of state and local governments relate to their comprehensive
annual financial reports.
- Explain the different objectives, measurement
focus, and basis of accounting of the government-wide financial
statements and fund financial statements of state and local governments.
- Explain the nature of the three major activity
categories of a state or local government: governmental activities,
business-type activities, and fiduciary activities
- Explain the components of GASB's integrated
accounting and financial reporting model, including:
The reporting entity
Government-wide financial statements
Fund financial statements
Definition of fund and principles
of fund accounting
Major fund reporting
Types of funds in each fund category and characteristics of each fund type
- Explain how operating revenues and expenses related
to governmental activities are classified and reported in the government-wide
- Distinguish, at the fund level, between Revenues
and Other Financing Sources and between Expenditures and Other Financing
- Explain how revenues and expenditures are
classified in the General Fund.
- Explain how budgetary accounting contributes to
achieving budgetary control over revenues and expenditures, including
such aspects as:
Recording the annual budget.
Accounting for revenues.
Accounting for encumbrances and expenditures.
Accounting for allotments.
Reconciling GAAP and budgetary amounts.
typical operating transactions for governmental activities and prepare
appropriate journal entries at both the government-wide and fund levels.
for expense recognition at the government-wide level and expenditures at
the fund level for goods encumbered in the prior year.
the contents of interim balance sheets and budgetary comparison schedules.
the difference between exchange and nonexchange transactions, and the
classifications of nonexchange transactions.
and make entries for internal exchange transactions.
adjusting entries, including reclassification of property taxes to
delinquent status, accrual of interest and penalties for property taxes,
and adjustment for inventories.
a pre-closing trial balance for the General Fund.
closing journal entries.
year-end General Fund financial statements.
for operating grants and other financial assistance using special revenue
for interfund transactions; distinguish between intra- and inter-activity
transactions; and explain accounting for intra-entity transactions.
- Describe the nature and characteristics of general
- Account for the acquisition of general capital assets
including infrastructure assets.
- Account for the maintenance and disposition of
general capital assets.
- Account for depreciation of general capital assets
including the modified approach for infrastructure assets.
- Explain the purpose and characteristics of a capital
- Explain the typical sources of financing for capital
- Prepare journal entries for a typical capital
project, both within the capital projects fund and within the governmental
activities category at the government-wide level.
- Explain the concepts and accounting procedures for
special assessment capital projects.
- Prepare financial statements for capital projects
what types of liabilities are classified as general long-term liabilities.
Make journal entries in the governmental activities general journal to
record the issuance and repayment of general long-term liabilities.
journal entries in the governmental activities general journal to record
general long-term liabilities arising from capital lease agreements.
a schedule summarizing changes in general long-term liabilities. Describe
the reasons for and nature of statutory debt limits and explain the
meaning of debt margin and overlapping debt.
the purpose and types of debt service funds.
the budgeting requirements for debt service funds.
appropriate journal entries to account for debt service transactions.
- Distinguish between the purposes of internal service
funds and enterprise funds.
- Describe the characteristics of proprietary funds.
- Explain the financial reporting requirements,
including the differences in reporting of enterprise funds and of internal
service funds in the government-wide and fund financial statements.
- Explain the characteristics, accounting procedures,
and termination of internal service funds.
- Prepare journal entries and describe financial
reporting requirements for an internal service fund.
- Describe the characteristics and specialized accounting
procedures for enterprise funds.
- Prepare journal entries and financial statements for
an enterprise fund.
- Explain the purposes of fiduciary funds and
distinguish among agency funds and trust funds (private-purpose,
investment, and pension).
- Describe the uses for and characteristics of agency
- Explain the operations of and accounting and
financial reporting for commonly used agency funds.
- Explain the creation, operation, accounting, and
financial reporting for:
A cash and investment pool (including an investment trust fund)
A private-purpose trust fund
A pension trust fund
- Describe the financial reporting requirements of the
GASBS 34 reporting model.
- Explain the key concepts and terms used in describing
the governmental reporting entity.
- Apply the GASB criteria used to determine whether a
potential component unit should be included in the reporting entity and
when included, the manner of reporting component units.
- Identify and describe the contents of a comprehensive
annual financial report (CAFR).
- Identify and explain contemporary financial reporting
- Explain the importance of evaluating governmental
- Distinguish among and describe key financial
performance concepts, such as:
- Explain the relationships among environmental
factors, organizational factors, and financial factors in determining
governmental financial condition.
- Identify, calculate, and interpret key economic and
financial ratios that measure financial condition.
- Analyze financial performance using government-wide
the essential characteristics of financial audits by independent CPAs,
The objective(s) of financial audits.
The source and content of generally accepted auditing standards (GAAS).
The types of audit reports that can be rendered.
The contents of an unqualified and a qualified audit report.
Required supplementary information.
what is meant by generally accepted government auditing standards (GAGAS),
the source of GAGAS, and why GAGAS are much broader than GAAS.
the types of audits performed under GAGAS, including
the characteristics of a single audit, including
Which entities must have a single
What auditing work is required.
How major programs are selected for
What reports must be rendered,
when, and to whom.
the role of audit committees
- Explain the objectives of budgeting and cost
determination in relation to measuring performance. Implications of GASBS
34 for public budgeting
- Explain the differences among various budgeting
- Identify the procedures involved in specific types of
budgets including appropriation budgets, revenue budgets, cash budgets,
and capital budgets.
- Describe budgeting for performance:
Total quality management (TQM)
Service efforts and accomplishments (SEA)
- Explain unique aspects of costing government
Federal contracts and grants
Activity-based costing (ABC)
Cost accounting and expenditure accounting
the unique budget and cost issues in a nongovernmental, not-for-profit
- Distinguish not-for-profit organizations (NPOs) from
entities in the governmental and commercial sectors of the U.S. economy.
- Identify the authoritative standards-setting body for
establishing GAAP for nongovernmental NPOs.
- Explain financial reporting and accounting for NPOs.
Required financial statements.
Classification of net assets.
Accounting for revenue, gains, and support.
Accounting for expenses.
Accounting for assets.
- Describe optional fund accounting.
- Identify the unique accounting issues of financially
- Prepare financial statements using SFAS No. 117.