CGFM GOVERNMENTAL ACCOUNTING, FINANCIAL REPORTING AND BUDGETING - SECTION 2
ACCOUNTING AND REPORTING FOR STATE AND LOCAL GOVERNMENTS WITH 100% VERIFIED
SOLUTIONS 2023-2025
Users of General Purpose External Financial Reports
1) citizenry (media & public interest)
2) legislative and oversight bodies
3) investors and creditors
Reporting entity
primary government and its component units
Component units
organizations for which the primary government is financially accountable, and other
organizations for which the nature and significance are such that their exclusion would cause
the reporting entity's financial statements to be misleading.
Primary government
any state government, general purpose local government, or a Special-Purpose state or local
government
Special-purpose government
school district, public utility, transit system, etc. May also be a Primary government if it:
1) is legally separate
2) has a separately elected governing body
3) fiscally independent of other state and local governments
corporate powers
1) capacity to have a name
2) right to sue and be sued in its own name
3) buy, sell, lease and mortgage property
4) right to issue debt in its own name
PCU is Financially Accountable to a PG
1) PG has (Substantively Appointed) Voting Majority of PCU governing body, and
2a) has Imposition of Will
2b) PCU has Financial Benefit or Burden on PG
Blending
, CU data are presented in a manner like the presentation of the balances and transactions of the
primary government. 2 criteria:
1) CU and PG Boards substantively the same
2) CU primarily Provides Services to PG
Discrete presentation
CU data are presented in the reporting entity's FS separate from the data of the PG.
Statistical Section
"One of the three major parts of the Comprehensive Annual Financial Report (CAFR) (q.v.),
listing schedules that assist users in evaluating the financial condition of a government and its
community."
1) Financial Trends
2) Revenue Capacity
3) Debt Capacity
4) Demographic and Economic
5) Operations
Government-wide financial statements
provide information about the activities of the government as a whole, except for its fiduciary
activities. Statement of Net Position/B/S and Statement of Activities
Fund financial statements
Present f/s for PG's governmental, proprietary and fiduciary funds.
Special Purpose Financial Reports
include summary financial information/popular reports, Citizen Centric Reports, grant reports,
internal reports.
Governmental funds
traditionally been used to account for the general services provided to the public. Focus on
sources, uses and balances of Current Financial Resources, Modified Accrual basis
Proprietary Funds
generally match revenues to expenses that result directly and jointly from the same transactions
or other events, such as sales and COGS. a user fee or charge for goods or services is generally
required to create a proprietary fund. Operating income, changes in net position, cash flows.
Accrual basis, economic resources
ACCOUNTING AND REPORTING FOR STATE AND LOCAL GOVERNMENTS WITH 100% VERIFIED
SOLUTIONS 2023-2025
Users of General Purpose External Financial Reports
1) citizenry (media & public interest)
2) legislative and oversight bodies
3) investors and creditors
Reporting entity
primary government and its component units
Component units
organizations for which the primary government is financially accountable, and other
organizations for which the nature and significance are such that their exclusion would cause
the reporting entity's financial statements to be misleading.
Primary government
any state government, general purpose local government, or a Special-Purpose state or local
government
Special-purpose government
school district, public utility, transit system, etc. May also be a Primary government if it:
1) is legally separate
2) has a separately elected governing body
3) fiscally independent of other state and local governments
corporate powers
1) capacity to have a name
2) right to sue and be sued in its own name
3) buy, sell, lease and mortgage property
4) right to issue debt in its own name
PCU is Financially Accountable to a PG
1) PG has (Substantively Appointed) Voting Majority of PCU governing body, and
2a) has Imposition of Will
2b) PCU has Financial Benefit or Burden on PG
Blending
, CU data are presented in a manner like the presentation of the balances and transactions of the
primary government. 2 criteria:
1) CU and PG Boards substantively the same
2) CU primarily Provides Services to PG
Discrete presentation
CU data are presented in the reporting entity's FS separate from the data of the PG.
Statistical Section
"One of the three major parts of the Comprehensive Annual Financial Report (CAFR) (q.v.),
listing schedules that assist users in evaluating the financial condition of a government and its
community."
1) Financial Trends
2) Revenue Capacity
3) Debt Capacity
4) Demographic and Economic
5) Operations
Government-wide financial statements
provide information about the activities of the government as a whole, except for its fiduciary
activities. Statement of Net Position/B/S and Statement of Activities
Fund financial statements
Present f/s for PG's governmental, proprietary and fiduciary funds.
Special Purpose Financial Reports
include summary financial information/popular reports, Citizen Centric Reports, grant reports,
internal reports.
Governmental funds
traditionally been used to account for the general services provided to the public. Focus on
sources, uses and balances of Current Financial Resources, Modified Accrual basis
Proprietary Funds
generally match revenues to expenses that result directly and jointly from the same transactions
or other events, such as sales and COGS. a user fee or charge for goods or services is generally
required to create a proprietary fund. Operating income, changes in net position, cash flows.
Accrual basis, economic resources
