CGFM Exam 2 - Section 2, Chapter 2 -
Fund Accounting and Reporting
Establish the foundational accounting and reporting standards for state and local
FUNDS - ANS-GASB Codification Section 1300
Funds are fiscal and accounting entities that are segregated for the purpose of carrying
out specific activities. - ANS-Fund
governmental, proprietary and fiduciary. - ANS-3 major categories of funds used by
state and local governments
Traditionally been used to account for the general services provided to the public.
These services include public safety, health, transportation, social services, recreation
and the administration of the government. - ANS-Governmental Funds
use the current financial resources measurement
focus and modified accrual basis of accounting. Expendable assets are used to pay for
current liabilities. The difference between assets and liabilities is fund balance. - ANS-
focus of governmental funds for reporting purposes
current financial resources measurement focus and modified accrual basis of
accounting. - ANS-Type of accounting used for governmental funds
General Fund, Special Revenue Funds, Capital Projects Funds, Debt Service Funds,
Permanent Funds - ANS-Types of Government Funds
- to account for and report all financial resources, except those required to be accounted
for in another fund.
- Considered most important fund.
- Most administrative services of the government should be accounted for in the general
fund. - ANS-General Fund purpose
• Property taxes, sales taxes and income taxes are the most common revenue sources
used to finance government activities.
• Permit and license fees may also be significant resources that are used to finance
services.
• Other major revenue sources are intergovernmental grants and shared revenues.
• Fines, forfeitures and investment earnings may be substantial for some governments -
ANS-General Fund sources of revenues & expenditures
