Essentials of Accounting for Governmental and Not-For-Profit Organizations

Description

Copley's Essentials of Accounting for Governmental and Not-for-Profit Organizations, 12e is best suited for those professors whose objective is to provide more concise coverage than what is available in larger texts. The main focus of this text is on the preparation of external financial statements which is a challenge for governmental reporting. The approach in this edition is similar to that used in practice. Specifically, day to day events are recorded at the fund level using the basis of accounting for fund financial statements. Governmental activities are recorded using the modified accrual basis. The fund-basis statements are then used as input in the preparation of government-wide statements. The preparation of government-wide statements is presented in an Excel worksheet. Cover Title Copyright Preface Contents CHAPTER ONE: INTRODUCTION TO ACCOUNTING AND FINANCIAL REPORTING FOR GOVERNMENTAL AND NOT-FOR-PROFIT ORGANIZATIONS Generally Accepted Accounting Principles Sources of Generally Accepted Accounting Principles Definition of Government Objectives of Accounting and Financial Reporting Objectives of Accounting and Financial Reporting for the Federal Government Objectives of Financial Reporting by Not-for-Profit Entities Objectives of Accounting and Financial Reporting for State and Local Governmental Units State and Local Government Financial Reporting Comprehensive Annual Financial Report Measurement Focus and Basis of Accounting Fund Structure for State and Local Government Accounting and Reporting Number of Funds Required Budgetary Accounting CHAPTER TWO: OVERVIEW OF FINANCIAL REPORTING FOR STATE AND LOCAL GOVERNMENTS The Governmental Reporting Entity Reporting by Major Funds Overview of the Comprehensive Annual Financial Report (CAFR) Introductory Section Financial Section: Auditor's Report Management's Discussion and Analysis (MD&A) Statement of Net Position Government-wide Statement of Activities Governmental Funds: Balance Sheet Governmental Funds: Statement of Revenues, Expenditures, and Changes in Fund Balance Proprietary Funds: Statement of Net Position Proprietary Funds: Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds: Statement of Cash Flows Fiduciary: Statement of Fiduciary Net Position Fiduciary: Statement of Changes in Fiduciary Net Position Notes to the Financial Statements Required Supplementary Information Other Than MD&A Combining Statements Statistical Information Special-Purpose Governments Public Colleges and Universities Other Governmental Not-for-Profit Organizations CHAPTER THREE: MODIFIED ACCRUAL ACCOUNTING: INCLUDING THE ROLE OF FUND BALANCES AND BUDGETARY AUTHORITY Modified Accrual Accounts Balance Sheet Accounts Financial Statement Activity Accounts Budgetary Accounts Expenditure Cycle Revenue Recognition for Nonexchange Transactions Summary Appendix: Budgetary Accounting Illustrated Budgets and Budgetary Accounts Recording the Budget Accounting for Revenues Accounting for Encumbrances and Expenditures Budget Revisions Budgetary Comparison Schedule Classification of Estimated Revenues and Revenues Classification of Appropriations and Expenditures CHAPTER FOUR: ACCOUNTING FOR THE GENERAL AND SPECIAL REVENUE FUNDS Overview of Modified Accrual Accounting Interfund Transactions Interfund Loans Interfund Services Provided and Used Interfund Transfers Interfund Reimbursements Illustrative Case—General Fund Use of Budgetary Accounts Recording the Budget Re-establishment of Encumbrances Recording Prior-Year Property Taxes as Revenues Tax Anticipation Notes Payable Payment of Liabilities as Recorded Encumbrance Entry Recording Property Tax Levy Collection of Delinquent Taxes Collection of Current Taxes Other Revenues Repayment of Tax Anticipation Notes Recognition of Expenditures for Encumbered Items Payrolls and Payroll Taxes Payment on Account and Other Items Correction of Errors Amendment of the Budget Interfund Transactions Write-off of Uncollectible Delinquent Taxes Reclassification of Current Taxes Accrual of Interest and Penalties Deferral of Property Tax Revenue Special Item Preclosing Trial Balance Closing Entries Year-End Financial Statements Illustrative Case—Special Revenue Fund Motor Fuel Tax Revenues Expenditures for Road Repairs Reimbursement to General Fund Reimbursement Grant Accounting Closing Entry Year-End Financial Statements Recognition of Inventories in Governmental Funds Summary CHAPTER FIVE: ACCOUNTING FOR OTHER GOVERNMENTAL FUND TYPES: CAPITAL PROJECTS, DEBTSERVICE, AND PERMANENT Capital Projects Funds Illustrative Case Other Issues Involving Acquisition of Capital Assets Acquisition of General Fixed Assets by Lease Agreements Construction of General Fixed Assets Financed by Special Assessment Debt Debt Service Funds The Modified Accrual Basis—As Applied to Debt Service Funds Additional Uses of Debt Service Funds Debt Service Accounting for Serial Bonds Illustrative Case—Regular Serial Bonds Other Issues Involving Payment of Long-Term Debt Debt Service Accounting for Deferred Serial Bonds Debt Service Accounting for Term Bonds Debt Service Accounting for Capital Lease Payments Bond Refundings Permanent Funds Financial Reporting for Governmental Funds Financial Statements—Governmental Funds Summary CHAPTER SIX: PROPRIETARY FUNDS Internal Service Funds Establishment and Operation of Internal Service Funds Illustrative Case—Supplies Fund Other Issues Involving Internal Service Funds Risk Management Activities Implications for Other Funds Enterprise Funds Illustrative Case—Water Utility Fund Proprietary Fund Financial Statements Statement of Net Position Statement of Revenues, Expenses, and Changes in Fund Net Position Statement of Cash Flows Accounting for Municipal Solid Waste Landfills Pollution Remediation Costs Summary CHAPTER SEVEN: FIDUCIARY (TRUST) FUNDS Agency Funds Tax Agency Funds Accounting for Tax Agency Funds Financial Reporting for Agency Funds Private-Purpose Trust Funds Accounting for Investments Illustrative Case—Private-Purpose Trust Funds A Note about Escheat Property Investment Trust Funds Public Employee Retirement Systems (Pension Trust Funds) Accounting and Reporting for Defined Benefit Pension Plans Additional Disclosures Other Postemployment Benefit Trust Funds A Note about IRS 457 Deferred Compensation Plans A Final Comment on Fund Accounting and Reporting Appendix: Employer Reporting for Pensions Reporting of Pension Liabilities Reporting of Pension Expenditure—Governmental Funds Reporting of Pension Expense—Accrual Based Statements A Final Note: Pension Discount Rates CHAPTER EIGHT: GOVERNMENT-WIDE STATEMENTS, CAPITAL ASSETS, LONG-TERM DEBT Conversion from Fund Financial Records to Government-Wide Financial Statements Capital Asset–Related Entries Long-Term Debt–Related Entries Adjusting to Convert Revenue Recognition to the Accrual Basis Adjusting Expenses to the Accrual Basis Adding Internal Service Funds to Governmental Activities Eliminating Interfund Activities and Balances within Governmental Activities Worksheet to Illustrate the Adjustments Government-Wide Financial Statements Statement of Net Position Statement of Activities Required Reconciliation to Government-wide Statements Summary Appendix: Accounting for Capital Assets and Long-Term Debt in Governmental Activities Accounting for General Capital Assets, Including Infrastructure The Modified Approach for Reporting Infrastructure Collections Asset Impairment Accounting for Long-Term Debt Types of General Long-Term Debt Debt Disclosures and Schedules CHAPTER NINE: ACCOUNTING FOR SPECIAL-PURPOSE ENTITIES, INCLUDING PUBLIC COLLEGES AND UNIVERSITIES GASB Statement 34 Reporting Rules for Special-Purpose Entities Reporting by Special-Purpose Local Governments Engaged in Governmental Activities Reporting by Special-Purpose Local Governments Engaged Only in Business-type Activities Reporting by Special-Purpose Local Governments Engaged Only in Fiduciary-type Activities Accounting and Financial Reporting for Public Colleges and Universities The Environment of Public Higher Education Accounting and Financial Reporting for Public Institutions of Higher Education Illustrative Case—Northern State University—Beginning Trial Balance Illustrative Case—Journal Entries Illustrative Case—Closing Entries Illustrative Case—Financial Statements Summary CHAPTER TEN: ACCOUNTING FOR PRIVATE NOT-FOR-PROFIT ORGANIZATIONS Organizations Covered in This Chapter Overview of Not-for-Profit Accounting Three Classes of Net Assets Financial Reporting Note Disclosures Accounting for Contributions, Including Reclassifications of Net Assets Reporting of Expenses and Assets Special Topics: Accounting for Contributions Illustrative Transactions and Financial Statements Beginning Trial Balance Transactions Financial Statements Alternative Procedure for Recording Fixed Assets Performance Evaluation Mergers and Acquisitions Summary of Not-for-Profit Accounting and Reporting CHAPTER ELEVEN: COLLEGE AND UNIVERSITY ACCOUNTING—PRIVATE INSTITUTIONS Overview of Private College and University Accounting Financial Statements Illustrative Transactions and Financial Statements Illustrative Transactions Illustrative Financial Statements for Private Colleges and Universities Split-Interest Agreements Summary—Private College and University Reporting CHAPTER TWELVE: ACCOUNTING FOR HOSPITALS AND OTHER HEALTH CARE PROVIDERS Accounting and Reporting Requirements of the Health Care Guide Financial Statements Revenues Classifications Illustrative Transactions and Financial Statements Beginning Trial Balance Illustrative Statements for Private Sector Not-for-Profit Health Care Entities Financial Reporting for Governmental Health Care Entities Financial Reporting for Commercial (For-Profit) Health Care Entities Summary and Conclusions Regarding Health Care Accounting and Reporting CHAPTER THIRTEEN: AUDITING, TAX-EXEMPT ORGANIZATIONS, AND EVALUATING PERFORMANCE Governmental Auditing The Single Audit Act and Amendments The Sarbanes-Oxley Act Tax-Exempt Organizations Applying for Tax-Exempt Status Federal Filing Requirements State Filing Requirements Unrelated Business Income Tax (UBIT) IRS Oversight Summary and Some Conclusions Related to Exempt Entities Evaluating Performance Analysis of Not-for-Profit Organization Financial Statements Analysis of State and Local Government Financial Statements Service Efforts and Accomplishments Reporting CHAPTER FOURTEEN: FINANCIAL REPORTINGBY THE FEDERAL GOVERNMENT Federal Government Accounting Standards Financial Reporting by Federal Agencies Balance Sheet Statement of Net Cost Statement of Changes in Net Position Statement of Budgetary Resources Statement of Custodial Activity Consolidated Financial Report of the U.S. Government Budgetary and Proprietary Accounting Budgetary Accounts Proprietary Accounts Summary of Federal Government Reporting Appendix: Illustrative Example Glossary: Governmental and Not-for-Profit Accounting Terminology A B C D E F G H I J L M N O P Q R S T U Z Index A B C D E F G H I J K L M N O P Q R S T U V W Y