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1) Capital projects funds are always included in the Budgetary Comparison Schedule.
2) Allotmentsare made at the agency level and assign portions of the appropriation to
subunits or programs.
3) To apply for tax-exempt status, an organization must complete an IRS Form 1023 .
4) A Statement of Functional Expenses is required for public colleges and universities.
5) When establishing funds, governments should never attempt to minimize the number
of special revenue and other funds, instead using functional classification to record
transaction detail.
6) Internal Service Funds are most commonly incorporated into the governmental
activities category of the government-wide statements.
7) Governmental investments in equity securities that have a determinable fair value are
to be reported at fair value and any unrealized gains and losses are to be reported
separately from realized gains and losses in the governmental operating statements.
8) Modified accrual accounting records encumbrances when goods are ordered and
accrual accounting only records a liability only when goods are received.
9) A tuition waiver for a student who works as a graduate assistant is treated as a
reduction in revenue.
10) Tuition waived for academic and athletic scholarships decreases student fee revenue
when preparing a Statement of Revenues, Expenses, and Changes in Net Position.
11) The General Fund accounts for any resources not reported in one of the other funds.
12) The program expense ratio is calculated as (Program service expenses + supporting
service expenses) / Total expenses.
13) With respect to health care organizations, expenses must be reported using their
natural classifications.
14) Long term debt serviced from proprietary funds is recorded in the Long Term Debt
Account Group.
15) If fixed assets are recorded as temporarily restricted assets, then a reclassification is
made each accounting period to unrestricted resources in the amount equal to the
depreciation or an allocation based on the time the asset is restricted, whichever is
shorter.
16) Under GASB Statement 33 requirements for accrual accounting, property tax
revenue should be recognized in the period that the tax is collected.
17) When recording the budget, an excess of estimated revenues over appropriations
would be debited to Budgetary Fund Balance.
18) A government may not selectively designate any fund to be a major fund even if
reporting the fund separately would be useful.
19) Investments in a private-purpose trust fund should generally be reported at fair
market value.
