Session 2-General Fund Entries & Financial Statements

1. Session 2-General Fund Entries & Financial Statements • Entries: • Adoption of the budget • Property taxes • Revenue other than property taxes • Expenditures & encumbrances other than inventory • Acquisition and consumption of inventory • Disbursements • Inter-fund transactions • Closing entries-general • Closing entries-encumbrances • Fund balance reserves • Financial statements • Balance Sheet • Statement of Revenues, Expenditures & Changes in Fund Balance Governmental & NPO Accounting-2008

2. Adoption of the Budget • BUDGETED accounts will be shown in capital letters ESTIMATED REVENUES XXX BUDGETARY FUND BALANCE XXX APPROPRIATIONS XXX APPROPRIATIONS-TRANSFERS OUT XXX This is only a budgetary entry. Governmental & NPO Accounting-2008

3. Property Taxes • The following entries are used to record property tax transactions • Property tax levy • Property tax collection • Write-offs • Adjustment to prior uncollectibles • Adjustment to current uncollectibles • Adjustment to deferred revenue • Transfer to delinquent accounts Governmental & NPO Accounting-2008

4. Other Revenue Unique receivable XXX Revenue XXX Cash XXX Unique receivable XXX Governmental & NPO Accounting-2008

5. Expenditures, other than Inventory ENCUMBRANCES XXX BUDGETARY FUND BAL. RES. FOR ENCUMBRANCES XXX • Think purchase orders BFBR-ENC. XXX ENCUMBRANCES XXX • Think adjustment to POs for actual payables Expenditures XXX Vouchers payable XXX • Think accounts payable Governmental & NPO Accounting-2008

6. Inventory ENCUMBRANCES XXX BUDGETARY FUND BAL. RES. FOR ENCUMBRANCES XXX • Think purchase orders BFBR-ENC. XXX ENCUMBRANCES XXX • Think adjustment to POs for actual payables Inventory XXX Vouchers payable XXX • Think accounts payable Expenditures XXX Inventory XXX • To record consumption of inventory Governmental & NPO Accounting-2008

7. Disbursements Vouchers payable XXX Cash XXX Governmental & NPO Accounting-2008

8. Inter-fund Transactions • A variety of transactions with other funds • Typically record an expenditure, liability and transfer of cash • Involves receipt of goods and services or direct transfer of cash Receipt of goods and services: Expenditure XXX Due to ABC fund XXX Due to ABC fund XXX Cash XXX Direct transfer of cash Other Financing Uses-Transfers Out XXX Cash XXX Governmental & NPO Accounting-2008

9. Closing Entries-General • BUDGETARY ACCOUNTS APPROPRIATIONS XXX APPROPRIATIONS-TRANSFERS OUT XXX ESTIMATED REVENUES XXX BUDGETARY FUND BALANCE XXX • General Fund Accounts Revenues XXX Unreserved Fund Balance XXX Expenditures XXX Other Financing Uses—Transfers Out XXX Governmental & NPO Accounting-2008

10. Closing Entries-Encumbrances BFBR-ENCUMBRANCES XXX ENCUMBRANCES XXX • Closes out all unused encumbrances Governmental & NPO Accounting-2008

11. Fund Balance Reserves Unreserved Fund Balance XXX Fund Balance Res. for Encumbrances XXX • Required if encumbrances will be honored in the next year • Recall the concept of current year accounting • Next year’s opening entry Fund Balance Res. for Encumbrances XXX Unreserved Fund Balance XXX ENCUMBRANCES XXX BFBR-ENCUMBRANCES XXX Governmental & NPO Accounting-2008

12. Balance Sheet • Assets • Liabilites • Fund balance • Reserved • Unreserved Governmental & NPO Accounting-2008

13. Statement of Revenues, Expenditures & Fund Balance • Revenues • Expenditures • Current • Other • Other Financing Sources (Uses) • Excess or deficiency • Fund balance, beginning of period • Fund balance, end of period Governmental & NPO Accounting-2008