Chapter 17 – Accounting and Reporting for the Federal Government
17–17
Ch. 17, Solutions, Exercise 17-18, a. (Cont’d)
SAVE OUR RESOURCES COMMISSION
Debits Credits
BUDGETARY ACCOUNTS
EXPENDED AUTHORITY⎯2023 $ 4,500,000
ALLOTMENTS⎯2023 100,000
UNDELIVERED ORDERS⎯2023 310,000
Note:
Unexpended Appropriations ($410,000) + Expended Authority ($4,500,000) = $4,910,000
(original appropriation)
Appropriations Used ($4,500,000) + Unexpended Appropriations ($410,000) = $4,910,000
(original appropriation)
b.
APPROPRIATIONS USED DURING FY 2023 $4,500,000
(Net increase in cumulative results of operations is the same as net increase in assets other than
fund balance with treasury if appropriations is the only financing source)
(Note A: Total expenses is the sum of Operating/Program Expenses of $2,150,000 and
Depreciation and Amortization of $750,000.)
c. Closing entries Debits Credits
BUDGETARY
EXPENDED AUTHORITY⎯2023 4,500,000
Chapter 17 – Accounting and Reporting for the Federal Government
17–18
Ch. 17, Solutions, Exercise 17-18, c. (Cont’d)
SAVE OUR RESOURCES COMMISSION
Debits Credits
PROPRIETARY
CUMULATIVE RESULTS OF OPERATIONS 2,900,000
OPERATING/PROGRAM EXPENSES 2,150,000
DEPRECIATION AND AMORTIZATION 750,000
General Problem Information: Fund balance with U.S. Treasury
Learning Objective: 17-5
Topic: Dual-track Accounting System
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN: Measurement
Level of Difficulty: Hard
17-19
a. SAVE OUR RESOURCES COMMISSION
STATEMENT OF BUDGETARY RESOURCES
FOR THE YEAR ENDED SEPTEMBER 30, 2023
BUDGETARY RESOURCES:
BUDGETARY AUTHORITY $4,810,000
Note A: New obligations and upward adjustments is the expended authority of current year of
$4,500,000 plus $310,000 for undelivered orders.
Chapter 17 – Accounting and Reporting for the Federal Government
17–19
Ch. 17, Solutions, Exercise 17-19 (Cont’d)
b. SAVE OUR RESOURCES COMMISSION
STATEMENT OF CHANGES IN NET POSITION
FOR THE YEAR ENDED SEPTEMBER 30, 2023
CUMULATIVE RESULTS UNEXPENDED
OF OPERATIONS APPROPRIATIONS
BEGINNING BALANCE $1,009,000 $ 0
PRIOR PERIOD ADJUSTMENTS 0 0
BEGINNING BALANCE, ADJUSTED 1,009,000 0
TOTAL FINANCING SOURCES 5,509,000 310,000
NET COST OF OPERATIONS 2,900,000 0
ENDING BALANCES $2,609,000 $ 310,000
Chapter 17 – Accounting and Reporting for the Federal Government
Ch. 17, Solutions, Exercise 17-19 (Cont’d)
c. SAVE OUR RESOURCES COMMISSION
BALANCE SHEET
AS OF SEPTEMBER 30, 2023
ASSETS
INTRAGOVERNMENTAL:
FUND BALANCE WITH TREASURY⎯2023 $ 586,000
GOVERNMENTAL:
LIABILITIES
ACCOUNTS PAYABLE $ 230,000
NET POSITION
UNEXPENDED APPROPRIATIONS 410,000
CUMULATIVE RESULTS OF OPERATIONS 2,609,000
General Problem Information: Federal agency financial statements
Learning Objective: 17-5
Topic: Dual-track Accounting System
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN: Reporting
Level of Difficulty: Hard
Chapter 17 – Accounting and Reporting for the Federal Government
17–21
17-20.
RURAL ASSISTANCE AGENCY
STATEMENT OF NET COST
FOR THE YEAR ENDED SEPTEMBER 30, 2023
FOOD BANK
COSTS
$ 9,632,800
LESS: EARNED REVENUE
2,611,900
NET COST
7,020,900
HOUSING SERVICES
COSTS
LESS: EARNED REVENUE
1,237,400
NET COST
CREDIT COUNSELING
COSTS
2,391,000
LESS: EARNED REVENUE
87,000
NET COST
2,304,000
TOTAL
COSTS
LESS: EARNED REVENUE
3,936,300
NET COST OF OPERATIONS
General Problem Information: Statement of net costs
Learning Objective: 17-5
Topic: Dual-track Accounting System
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN: Reporting
Level of Difficulty: Medium
Chapter 17 – Accounting and Reporting for the Federal Government
17-21. FEDERAL ANTIQUITIES ADMINISTRATION
STATEMENT OF BUDGETARY RESOURCES
FOR THE 11 MONTHS ENDED AUGUST 31, 2023
BUDGETARY RESOURCES:
BUDGET AUTHORITY (Note A):
APPROPRIATIONS RECEIVED (Note A)
$5,465,975
TOTAL BUDGETARY RESOURCES
$5,465,975
STATUS OF BUDGETARY RESOURCES:
UNOBLIGATED BALANCES (Note C)
750,000
TOTAL STATUS OF BUDGETARY RESOURCES
$5,465,975
Note A: Total budgetary resources are given by the balance of Other Appropriations Realized
of $5,465,975.
General Problem Information: Statement of budgetary resources
Learning Objective: 17-5
Topic: Dual-track Accounting System
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN: Reporting
Level of Difficulty: Medium
Chapter 17 – Accounting and Reporting for the Federal Government
17–23
17-22. a. FLOOD CONTROL COMMISSION
GENERAL JOURNAL
Debits Credits
1. BUDGETARY
OTHER APPROPRIATIONS
REALIZED⎯2023 7,000,000
2. BUDGETARY
UNAPPORTIONED AUTHORITY⎯2023 7,000,000
APPORTIONMENTS⎯2023 7,000,000
4. BUDGETARY
ALLOTMENTS⎯2023 970,000
UNDELIVERED ORDERS⎯2023 970,000
Chapter 17 – Accounting and Reporting for the Federal Government
17–24
Ch. 17, Solutions, Exercise 17-22, a. (5) (Cont’d)
FLOOD CONTROL COMMISSION
GENERAL JOURNAL
Debits Credits
PROPRIETARY
OPERATING/PROGRAM EXPENSES 170,000
DISBURSEMENTS IN TRANSIT⎯2023 170,000
6. BUDGETARY
UNDELIVERED ORDERS⎯2023 395,000
EXPENDED AUTHORITY⎯2023 395,000
PROPRIETARY
FURNITURE AND EQUIPMENT 180,000
UNEXPENDED APPROPRIATIONS⎯2023 395,000
APPROPRIATIONS USED 395,000
7. BUDGETARY
UNDELIVERED ORDERS⎯2023 183,000
EXPENDED AUTHORITY⎯2023 183,000
Chapter 17 – Accounting and Reporting for the Federal Government
17–25
Ch. 17, Solutions, Exercise 17-22, a. (7) (Cont’d)
FLOOD CONTROL COMMISSION
GENERAL JOURNAL
Debits Credits
PROPRIETARY
OPERATING/PROGRAM EXPENSES 183,000
ACCRUED FUNDED PAYROLL AND
BENEFITS 183,000
8. PROPRIETARY
ACCOUNTS PAYABLE 189,000
ACCRUED FUNDED PAYROLL AND
BENEFITS 183,000
DISBURSEMENTS IN TRANSIT⎯2023 372,000
DISBURSEMENTS IN TRANSIT⎯2023 372,000
FUND BALANCE WITH TREASURY⎯2023 372,000
PROPRIETARY
OPERATING/PROGRAM EXPENSES 40,000
ACCRUED FUNDED PAYROLL
AND BENEFITS 30,000
Chapter 17 – Accounting and Reporting for the Federal Government
17–26
Ch. 17, Solutions, Exercise 17-22, a. (9) (Cont’d)
FLOOD CONTROL COMMISSION
GENERAL JOURNAL
Debits Credits
OPERATING/PROGRAM EXPENSES 60,000
OPERATING MATERIALS AND SUPPLIES 60,000
10. BUDGETARY
EXPENDED AUTHORITY⎯2023 788,000
OTHER APPROP. REALIZED⎯2023 788,000
PROPRIETARY
CUMULATIVE RESULTS OF OPERATIONS 495,500
OPERATING/PROGRAM EXPENSES 493,000
DEPRECIATION AND AMORTIZATION 2,500
Chapter 17 – Accounting and Reporting for the Federal Government
17–27
Ch. 17, Solutions, Exercise 17-22 (Cont’d)
b. FLOOD CONTROL COMMISSION
BALANCE SHEET
OCTOBER 31, 2023
ASSETS
INTRAGOVERNMENTAL:
FUND BALANCE WITH TREASURY⎯2023 $6,458,000
GOVERNMENTAL:
LIABILITIES
ACCOUNTS PAYABLE $ 216,000
ACCRUED FUNDED PAYROLL AND BENEFITS 30,000
TOTAL LIABILITIES
COVERED BY BUDGETARY RESOURCES 246,000
NET POSITION
UNEXPENDED APPROPRIATIONS 6,212,000
Chapter 17 – Accounting and Reporting for the Federal Government
17–28
Ch. 17, Solutions, Exercise 17-22 (Cont’d)
c. FLOOD CONTROL COMMISSION
STATEMENT OF CHANGES IN NET POSITION
FOR THE MONTH ENDED OCTOBER 31, 2023
CUMULATIVE
RESULTS OF
OPERATIONS
UNEXPENDED
APPROPRIATIONS
BEGINNING BALANCES
$ 0
$ 0
BUDGETARY FINANCING SOURCES:
APPROPRIATIONS RECEIVED
7,000,000
APPROPRIATIONS USED
TOTAL FINANCING SOURCES
6,212,000
NET COST OF OPERATIONS (Note A)
_________
ENDING BALANCES
$ 292,500
$6,212,000
Chapter 17 – Accounting and Reporting for the Federal Government
17–29
Ch. 17, Solutions, Exercise 17-22 (Cont’d)
d. FLOOD CONTROL COMMISSION
STATEMENT OF BUDGETARY RESOURCES
FOR MONTH ENDED OCTOBER 31, 2023
$7,000,000
Note A: Total budgetary resources are the total appropriations for the year, or $7,000,000.
Note B: New obligations and upward adjustments equals expended budgetary authority of
$788,000 (see Entry 10) plus the remaining balance of Undelivered Orders⎯2022 of
$182,000 ($970,000 − $788,000), or $970,000. In this case, since the Flood Control
Commission obligates prior to all expenditures of budgetary authority, the amount
General Problem Information: Transaction analysis and statements
Learning Objective: 17-5
Topic: Dual-track Accounting System
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN: Measurement
Level of Difficulty: Hard
Chapter 17 – Accounting and Reporting for the Federal Government
17–30
(1) INDIVIDUAL INCOME TAXES/TOTAL REVENUES: 80.3%
($2,906.2 / $3,621)
(2) DEBT SERVICE ($10,732.1 + $305.7 / $3,621): 304.83%
c. FINANCIAL POSITION
(1) NON-DEDICATED COLLECTIONS FUNDS/TOTAL REVENUES: −7.31
(−$26,469.9 / $3,621)
* Since it is difficult to identify current portions of long-term debt, only somewhat
identifiable current liabilities were used in the calculation. Just Accounts Payable was
used in the first calculation and Accounts Payable plus Benefits Due and Payable were
used in the second calculation.
** Capital asset condition is calculated as the total accumulated depreciation divided by the
gross depreciable capital asset value. The total gross capital asset value ($2,439.8) was
adjusted for the non-depreciable asset balances of the construction in progress and land.
Chapter 17 – Accounting and Reporting for the Federal Government
Ch. 17, Solutions, Exercise 17-23, d. (Cont’d)
The federal government relies heavily on individual income taxes (80.3%). Debt service is
extremely high by any benchmark used. Illustration 10-3 indicates that for local
governments a service requirement greater than 20% is a warning sign.
General Problem Information: Financial statement analysis of the federal government
Learning Objective: 17-4
Topic: Required Financial Reporting—U.S. Government-wide
Bloom’s Taxonomy: Analyze
Accreditation Skills tag: AACSB: Analytical Thinking, AICPA: FN: Decision Making
Level of Difficulty: Hard