Exam 12: State and Local Governments: External Financial Reporting

Here is information for a county government: Governmental funds Enterprise funds Total assets and deferred outflows \ 60,000,000 \ 52,000,000 Total liabilities and deferred inflows 45,000,000 50,000,000 Total revenues 370,000,000 300,000,000 Total expenditures/expenses 382,000,000 299,500,000 The county has four special revenue funds, with the following characteristics: Health fund Parks fund Social services fund 911 fund Total assets and deferred outflows \ 7,000,000 \ 3,000,000 \ 6,200,000 \ 5,200,000 Total liabilities and deferred inflows 2,000,000 1,800,000 3,000,000 4,600,000 Total revenues 30,000,000 32,000,000 24,000,000 22,000,000 Total expenditures 28,000,000 30,000,000 23,000,000 21,000,000 Required Which of these special revenue funds will be shown separately, as major funds, in the governmental funds financial statements?

On the fund financial statements, unrealized gains on derivative investments held as hedges are reported

Leland County reports a budgetary actual excess of revenues and other financing sources over expenditures and other financing uses of $4,580,000 for the general fund for the current year. For budgetary purposes, the legal basis is used for encumbrances and the purchases method is used for inventory. Budgetary actual revenues and expenditures are reported on a cash basis. The following information is available for the general fund for the current year: Outstanding encumbrances, beginning of year \ 262,000 Outstanding encumbrances, end of year 285,000 Increase in inventory on hand 63,000 Accrued revenues, cash collection expected within 60 days 15,000 Accrued expenditures, cash payment expected within 60 days 17,000 Repayment of temporary loan to capital projects fund, reported as revenue for budget purposes 325,000 Unbudgeted transfers in 33,000 The general fund uses the modified accrual basis in its operating statement, using the GAAP basis for encumbrances and the consumption method for inventory. Required Prepare a schedule reconciling the budgetary actual results for the general fund to the change in fund balances reported in the general fund's operating statement.

Listed bellow the required operating statements for a county government: Required On which statement(s) would each of the following accounts appear? Identify the financial statement(s) by number. The account may appear on one statement or more than one statement, or none of the operating statements. If the account is not reported on any of the above statements, your answer is N/A. -Fund statement: Statement of revenues, expenses, and changes in net position-proprietary funds

The year-end balances of assets of fiduciary funds are reported

For questions bellow, use the numbers from the following financial statements required in a county government's CAFR to identify where the account is reported: 1) Government-wide statement: Statement of net position 2) Government-wide statement: Statement of activities 3) Fund statement: Balance sheet-Governmental funds 4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds 5) Fund statement: Statement of net position-Proprietary funds 6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds -On which financial statement(s) are principal payments made by governmental funds reported?

Listed bellow are the required balance sheets and statements of net position for a state government: Required On which balance sheet(s) would each of the following accounts appear? Identify the financial statement(s) by number. The account may appear on one or more or none of the financial statements. If the account is not reported on any of the above financial statements, your answer is N/A. -Fund statement: balance sheet-governmental funds

Below are transactions and other financial information for a county government. 1) The county's general administrative staff is paid $1,500,000 in cash. 2) Federal payroll deductions related to 1. are $220,000. Deductions are paid into a custodial fund but have not yet been remitted to the federal tax authorities. 3) A special revenue fund repays a temporary loan from the general fund, in the amount of $100,000. 4) A capital projects fund receives bills from contractors, in the amount of $5,000,000, related to construction of an addition to the county courthouse. The amount had been previously encumbered in assigned fund balance. The capital projects fund pays $4,800,000 to the contractors. 5) Employees reported in the county landfill fund (enterprise fund) earn future pension and OPEB benefits with a present value of $250,000. 6) Employees reported in the general fund earn future pension benefits with a present value of $675,000. Required a. For each of the above transactions, prepare journal entries necessary to record the transactions in both the fund financial statements and the government-wide financial statements of the county. For the government-wide entries, indicate whether the item is reported in governmental or business-type activities. For the fund entries, indicate which fund is affected. b. For each transaction item, indicate whether it is added, subtracted, or is not included in the reconciliation of the change in fund balances of governmental funds to the change in net position of governmental activities, appearing on the government-wide statements, and the amount of the reconciliation item, if included.

Which account will you never see on the government-wide statement of activities?

Listed bellow the required operating statements for a county government: Required On which statement(s) would each of the following accounts appear? Identify the financial statement(s) by number. The account may appear on one statement or more than one statement, or none of the operating statements. If the account is not reported on any of the above statements, your answer is N/A. -Government-wide statement: Statement of activities

In a reconciliation of fund balances-governmental funds to net position-governmental activities, which one of the following is a correct reconciliation item?

Which statement is false regarding separate disclosure of funds in the governmental fund financial statements?

Here are the government-wide financial statements and the funds statements for governmental and proprietary funds, for the State of California: Required For each of the following account titles reported in the financial statements of the State of California, indicate on which of the above six financial statements the item is reported. The account balance may be reported on one statement, more than one statement, or none of the statements. Indicate the number(s) of the statement(s) next to each item. If the item is not reported on any of the above statements, write N/A next to the item. -Governmental funds statement of revenues, expenditures, and changes in fund balances

The following information is taken from the 2016 CAFR of the City and County of Denver, Colorado. Denver's accounting year ends December 31. All items relate to activities of 2016 (amounts are in thousands). Net change in fund balances-total governmental funds \ 302,996 Principal retirement on general obligation bonds 248,580 Investment in derivative contracts, fiduciary funds 123,859 Increase in net position of internal service funds 6,115 Revenues reported using full accrual basis but not providing current resources, governmental funds 12,628 Interest income, fiduciary funds 76,343 Depreciation expense, governmental fund assets 142,190 Accrued proprietary funds revenues not providing current resources 1,170 Pension expense not requiring current financial resources, governmental funds 362,125 Other expenditures in excess of expenses, governmental funds 1,199 Depreciation and amortization expense, enterprise fund assets 198,200 General obligation bonds issued 408,619 Amortization of deferred inflows: pensions, governmental funds 236,463 Pension expense not requiring current resources, proprietary funds 16,940 Lease obligations incurred by governmental funds 373 Capital outlay, governmental funds 151,814 Lease principal payments, governmental funds 28,816 Other principal payments, governmental funds 1,314 Required Prepare a schedule showing the reconciliation of the 2016 net change in fund balances-governmental funds (as reported on the governmental funds balance sheet) to the change in net position of governmental activities (as reported on the government-wide statement of net position) for the City and County of Denver. Not all the information items above are needed to do this reconciliation.

The following information is available concerning the financial activities of Flathead County, Montana for the year ended June 30, 2017. All information relates to activities of governmental funds, except for the change in net position of internal service funds. Change in total fund balances-governmental funds \ 2,779,700 Long-term debt issuance 60,630 Tax collections in excess of full accrual revenues earned 146,631 Net transfers from general fund to special revenue funds 11,243,673 Decrease in net position, internal service funds 855,001 Depreciation expense on capital assets 4,522,540 Short-term investments of idle cash 2,840,539 Gain on disposal of capital assets 233,087 Principal payments on long-term debt 877,877 Capital assets purchased or constructed 10,106,343 Receipts of investment earnings in excess of full accrual revenues 18,767 Temporary loans from the general fund to other governmental funds 217,009 Proceeds from sale of capital assets 262,847 Increase in inventories; the County uses the consumption method 242,196 Increase in liability for long-term compensated absences 205,864 Increase in pension and OPEB liability 1,785,171 Increase in encumbrances; the County uses the GAAP method 4,391 Required Prepare a schedule showing the reconciliation of the change in total fund balances-governmental funds (as reported on the statement of revenues, expenditures and changes in fund balances of the governmental funds) to the change in net position-governmental activities (as reported on the government-wide statement of activities). Not all information above is used in this reconciliation.

Use the following information to answer bellow Questions. A county reports its defined benefit pensions for employees of governmental and proprietary funds on the government-wide financial statements. Here is information for fiscal 2021. •The total pension liability, measured at the end of fiscal 2021, is $100,000,000, while the total pension liability, measured at the end of fiscal 2020, is $85,000,000. •The net increase in deferred outflows related to pensions was $2,000,000, while deferred outflows released to pension expense were $300,000. •The net increase in deferred inflows related to pensions was $150,000, while deferred inflows released to pension expense were $20,000. •The county transferred $5,000,000 in cash to the pension trust fund. -The $300,000 in deferred outflows released during the year

Here are some of the financial statements required in the CAFR for the State of Rhode Island: For each of the following accounts related to the financial performance of the State of Rhode Island, indicate on which of the above financial statements the account is reported. The account may appear on one statement, more than one statement, or none of the statements. Indicate the number(s) of the statement(s) next to each account title. If the item is not reported on any of the above statements, write N/A in the space. -Fund statement: Statement of changes in fiduciary net position

Here are some of the financial statements required in the CAFR for the City of White Plains, NY: Required For each of the following accounts related to the financial performance of the City of White Plains, indicate, by number, on which of the above financial statements the item is reported. The account may be reported on one statement, more than one statement, or none of the statements. If the item is not reported on any of the above statements, your answer is N/A. -Fund statement: Balance sheet-governmental funds

Use the following information to answer Questions bellow: On April 1, 2020, Summit County issued $10,000,000 in variable rate debt, with interest paid on March 31 of each year, the county's fiscal year-end. The variable rate is adjusted at the beginning of each year. The variable rate for fiscal 2021 was 2.9%. On the same date, the county entered a receive variable/pay fixed interest rate swap, where the county pays a 3.1% fixed rate to a counterparty. The swap qualifies for hedge accounting. At the end of fiscal 2021, the variable rate is reset to 3.2% and the swap has increased in value by $75,000. By the end of fiscal 2022, the variable rate is reset to 3.4%, and the swap has increased in value by $125,000. -The increase in value of the derivatives investment in fiscal 2021 appears as

Here are some of the financial statements required in the CAFR for the City of White Plains, NY: Required For each of the following accounts related to the financial performance of the City of White Plains, indicate, by number, on which of the above financial statements the item is reported. The account may be reported on one statement, more than one statement, or none of the statements. If the item is not reported on any of the above statements, your answer is N/A. -Fund statement: Statement of net position-custodial fund