CGFM 152 EXAM 2 Study QUESTIONS WITH COMPLETE SOLUTIONS

Non-Spendable Fund Balance - ️️Assets not in spendable form-Inventories and prepaid items, principal of a permanent fund which may not be spent, and assets held for sale and long-term receivables. Examples: Supplies, inventory, membership fees Restricted Fund Balance - ️️Subject to constraints imposed by external parties or law. Debt covenants (such as a requirement for a sinking fund) or constraints imposed by legislation or federal and state agencies, creditors, contributors or granting agencies Three Categories of net position section of the government-wide Statement of Net Position - ️️Restricted, Committed & Assigned Committed Fund Balance - ️️Governing body formally committed net resources to specific activities. Contractual obligations outstanding. Board approval of large construction contracts would typically represent commitment of the funds. Assigned Fund Balance - ️️Residual balances in funds other than the General Fund or in the general fund that are intended for identified purposes Difference between Committed and Restricted - ️️Committed constraint is imposed by a government upon itself GASB standards state that rainy day funds may be classified as committed only under specific circumstances which are - ️️they are created by a resolution or ordinance that identifies the specific circumstances under which the resources may be expended Other financing sources consist of - ️️transfers in from other funds and proceeds of long-term borrowing