1. GOVERNMENTAL
ACCOUNTING

2. Governmental Accounting
Many concepts are similar to financial accounting, but terminology and procedures differ.
Governmental Accounting Standards Board (GASB) generates standards.

3. Governmental Accounting User Needs
Concepts Statement #1, GASB
Basic Groups of Users
Citizenry
Legislative and Oversight Bodies
Investors and Creditors

4. Nature of of Governmental Activities
Charter
Extensive Legal Requirements:
Constitutions, charters, and statutes regulate governmental units.
Some legal provisions pertain to accounting and financial reporting matters:
Keeping separate set of books for certain
activities.
Being audited by outside CPAs.

5. Nature of Governmental Activities
Absence of a Profit Motive
Question of What to Measure?
Revenues & Costs of Providing Services?
Inflows and Outflows of all Resources?
Inflows and Outflows of certain Resources?

6. Government Finance Officers Association (GFOA)
Equivalent to the AICPA for the private sector.
To enhance and promote professional management of governmental units --- publishes/provides the following :
Books, periodicals, monthly newsletter.
Services to members.
Software.

7. GAAFR: “The Blue Book ” GAAFR
Stands for Governmental Accounting, Auditing and Financial Reporting
Published by the GFOA.
Neither prescribes nor authoritatively interprets GAAP for governmental units.
Provides detailed guidance (many examples) for applying governmental GAAP.
Widely used by governmental units.

8. Governmental Accounting Standards Board (GASB)
Created in 1984
Sister organization to the FASB
Establishes GAAP for state and local government
No authority to establish GAAP for the federal government.
Seven members--simple majority vote needed

9. Jurisdictional Arrangement Between GASB and FASB
GASB --- primary responsibility for state and local governmental units.
Must follow FASB rules if GASB says so.
May elect to follow a FASB rule if GASB has not addressed a specific issue --- if election made, must use ALL such rules.

10. Basic Principles of the GASB Codification: Grouped into 7 Categories
Accounting & Reporting Capabilities
Types of Funds
Basis of Accounting
Financial Reporting
Long-Term Liabilities
Capital Assets
Budgets and Budgetary Accounting

11. Accountability and Governmental Accounting
Governmental Accounting Statements attempt to answer 3 questions related to Accountability:
Where did the financial resources come from?
What amount of financial resources is presently held?
Where did the financial resources go?

12. Reporting Diverse Governmental Activities - Fund Accounting
Governmental units have many different types of activities.
No common motivation links these activities.
Each activity operates quasi-independent, self-balancing sets of accounts called funds.
Examples include:
Public Safety
Sanitation
Health & Welfare
Education
Parks & Recreation
Judicial System
Water and Sewer
Employee Pensions

13. Fund Accounting
Fund Accounting: Accounting for certain activities/operations separately from all other operations.
Fund --- self-balancing set of accounts
Reporting Entity --- focus on service
Financial Statements --- focus on accountability

14. Fund Accounting Classification
Governmental Funds
Proprietary Funds
Fiduciary Funds
Accounting for activities related to serving the public.
Accounting for business-type activities.
Accounting for financial resources held for others in a trustee capacity.

15. Fund Accounting Classification Governmental Funds
Let's Talk About
Each Fund

16. Governmental Funds General Fund
Used to account for all financial resources except those accounted for in other funds.
In 2011, 60% of Baltimore’s governmental funds were accounted for in the General Fund.

17. Governmental Funds Special Revenue Fund
Expenditures are legally restricted.
Revenues that must be spent for specific purposes.
St. Paul, MN, requires that money received for the sale of zoo animals, must be spent to acquire NEW animals for the zoo.

18. Governmental Funds Capital Projects Fund
Used to account for costs to acquire or build major governmental facilities.
The asset is not recorded in this account, but the funds to acquire or build it are accounted for here.

19. Governmental Funds Debt Service Fund
Used to account for financial resources collected to pay long-term liabilities and interest.
In 2011, Birmingham reported paying out $11 million in principal payments and $15 million in interest from its Debt Service Funds.

20. Governmental Funds Permanent Fund (Endowments)
Used to account for funds donated to the government by external donors.
In 2008, Dallas reported nearly $8 million in funds donated to take care of city parks.

21. Fund Accounting Classification Proprietary Funds

22. Proprietary Funds Enterprise Fund
Used to account for any government activity that is financed by user charges.
An activity MUST be accounted for here if, any one of the conditions below are met
Net revenues provide the security for the activity’s debts.
The the law requires costs to be recovered from user fees.
Fees are set high enough to recover costs..

23. Proprietary Funds Internal Service Fund
Used for any unit that provides services to the OTHER governmental departments.
Inter-departmental fees are charged.
Tennessee Tech University charges the departments for the use of University vehicles.

24. Fund Accounting Classification

25. Account Groups No longer reported on the Financial Statements
Used to keep track of general capital assets and long-term debt
Types:
General Fixed Asset Account Group (GFAAG)
General Long-Term Debt Account Group (GLTDAG)

26. Basis of Accounting
Modified Accrual Basis Used for Governmental Funds:
General Fund
Special Revenues Fund
Capital Projects Funds
Debt Service Funds
Permanent Funds

27. Basis of Accounting Modified Accrual Means:
REVENUES: Recognize in period in which they become available and measurable.
Available means: Collectible within the current period or soon enough thereafter to be used to pay current period liabilities.

28. Basis of Accounting Full Accrual (when earned) Basis Funds:
Proprietary Funds ---
Enterprise Funds
Internal Service Funds
Fiduciary Funds ---
Trust
Agency

29. Governmental Fund Accounting Major Account Classification
Recording the Budget
Controlling Accounts:
Revenues
Other Financing Sources
Appropriation/Expenditures
Other Financing Sources/Uses
Encumbrances

30. Fund Accounting Equity Section
ASSETS minus LIABILITIES =
Governmental and Proprietary
Fiduciary Funds Funds
FUND BALANCE NET ASSETS
Reserved Invested in Capital Assets
Unreserved net of related debt
Restricted
Unrestricted

31. Budgets and Budgetary Accounting
Annual Budgets for the General Fund and the Special Revenue Funds --- always recorded in the general ledger for control purposes.
Optional for Capital Projects Funds and Debt Service Funds.

32. Recording the Budgetary Entries
Fund Balance Composition
+ Estimated Revenues
+ Estimated Other Financing Sources
- Appropriations
- Estimated Other Financing Uses
= Fund Balance
Journal Entry:
Estimated Revenues xx
Estimated Other Financing Sources xx
Appropriations xx
Estimated Other Financing Uses xx
Fund Balance (Derived) xx

33. REVENUE
AN INFLOW OF ASSETS

34. Common Revenue Sources
Taxes
Licenses and Permits
Intergovernmental Revenues
Charges for Services
Fines and Forfeits
Miscellaneous
Interest, Rents, Sales of Fixed Assets
Other Financing Sources (OFS)

35. Income from Legal Claims
Property Taxes --- Levy of Taxes
Charges for Services --- Performing Services
Sales Taxes --- Taxable Sale by Business
Income Taxes --- Taxpayer Earning Income

36. GUIDE TO RECOGNIZING REVENUES:
Revenues STAND ALONE.
Not “earned” as in the private sector.
Delivery of services requires expenditures
Delivery of service does not “generate” revenues.
Come from outside the government unit

37. Property Taxes
Local governments derive most revenue from property taxes - based on value (ad valorem taxes)
Recognize as Revenue when levied
Collected in the current period or soon enough thereafter…
Need allowance for uncollectible
Deferred revenue if not “available”

38. Sales Taxes Charges for Services
Recognize when merchant files sales tax return
Measurable
Available
Charges for Services
Recognize revenue when billing for services rendered

39. Licenses and Permits Fines Difficult to predict accurate amounts
Normally recognize revenue when cash is received
Fines
Options:
when tickets are issued
date fine is due
actual payment date
Common practice - when cash is received

40. Investment Income Record all investments at Fair Value
“mark-to-market”
unrealized gains/losses are recognized as revenue in period
Interest and dividends accrued as earned

41. Grants & Other Intergovernmental Revenues
Restricted Grants --- Expenditure Driven
Food Stamps,
Pass-Through Grants (if administered)
On-Behalf Payments
Unrestricted Grants --- recognize upon award
Entitlements --- recognize upon award

42. Deferred Revenues Donations Liability recorded if unearned or
not legally available
Donations
Treatment by Type of Asset
Current Assets --- FMV
Fixed Assets to be used --- Account Groups at FMV
Fixed Assets to be sold --- Short-Term Investments at FMV

43. Tax Anticipation Notes
Recorded as a liability
Always short-term
Will not be converted into long-term so never in the account group

44. Other Financing Sources
Not a Revenue
Proceeds from Issue of Long-Term Debt
Sale of a Fixed Asset (up to original cost)
Transfer of Resources from Another Fund

45. EXPENDITURES
OUTFLOW OF ASSETS

46. Examples of Expenditures
Wages and Salaries
Compensated Absences
Vacations
Sick Leave
Pensions
Claims and Judgments
Supplies
Prepayments
Fixed Assets
Leases
Debt Service
Principal
Interest

47. Accounting for Expenditures
Recognize --- when liability is both measurable and incurred
Current Liabilities
Funded by Current Taxpayers
Use Available Financial Resources
Exception: Interest on Long Term Liabilities
Long Term Liabilities go in the Long Term Account Group

48. Other Financing Uses Not an Expenditure
Operating Transfers of Resources to Other Funds
Not classified as “Expenditures” in remitting fund to avoid double counting

49. ENCUMBRANCES
RESERVING ASSETS

50. Encumbrances --- commitments related to unperformed/executory contracts for goods or services.
Special General Ledger Accounts --- purpose which is to prevent spending more than has been appropriated.
ENTRIES HAVE NO EFFECT ON REPORTED OPERATIONS.

51. Commit to Future Expenditure
Encumbrances - Year 1
Commit to Future Expenditure
Encumbrance Control xx
F.B. Reserve for Encumbrances xx
When Invoice is Received
F.B. Reserve for Encumbrances xx
Encumbrance Control xx
Expenditures Control xx
Vouchers Payable xx
Year-End
Fund Balance xx
Expenditures Control xx

52. Encumbrances - Year 2 At Beginning of the Year: Reinstate Encumbrances
Encumbrances xx
Fund Balance xx
When Invoice is Received
F.B. Reserve for Enc. xx
Encumbrances xx
Expenditures xx
Vouchers Payable xx
At year-end
Fund Bal xx
Expenditures xx

53. Inventories of Supplies
Consumption Method:
Preferred Method-- parallels business practice.
ACQUISITION of inventory is treated as the conversion of resources (debit Inventory).
USE of inventory is treated as an outflow of resources (credit Inventory and debit Expenditures or Expenses).
Purchases Method:
ACQUISITION of inventory is treated as an outflow of resources (debit Expenditures or Expenses).

54. Supplies Expenditure Consumption Method
Acquisition:
Inventory - Supplies xx
Vouchers Payable xx
Record Expenditure Upon Consumption:
Expenditures - Supplies xx
Inventory - Supplies xx
Year end
Fund Balance - Unreserved xx
Fund Balance -Reserve for Supplies xx

55. Supplies Expenditure Purchase Method
Record expenditure upon acquisition:
Expenditure - Supplies xx
Vouchers Payable xx
Inventory - Supplies xx
Fund Balance - Reserve for Supplies xx

56. Prepayments Purchases Method: Expenditure - Insurance xx
Vouchers Payable xx
Consumption Method:
Prepaid Insurance xx
Prepaid Insurance xx

57. Year End Closing Entries
Close the Budget:
Appropriations xx
Budgetary Fund Balance xx
Estimated Revenues xx
Close the Actual Accounts:
Revenues xx
Expenditures xx
Encumbrances xx
Fund Balance xx

58. Special Revenue Fund Same accounting as the General Fund
May have expenditure-driven grants
If “on behalf” payments are administered by the government, activities are accounted for here
Accounts for expendable trust fund activity where both principal and earnings are used to support government activities or programs

59. CAPITAL PROJECT FUND (CPF)
Acquisition of major General Fixed Assets through
Purchase
Construction
Capital lease
Same basic accounting and reporting model as General Fund or Special Revenue Funds

60. CPF: Funding Sources Sources
Interfund Operating Transfers (Credit OFS)
Long-Term Borrowing (Credit OFS)
Intergovernmental Grants (Credit Revenue)
Special Assessments (Credit Revenue) --- levied against property owners or other beneficiaries

61. CPF: ACCOUNTING ACTIVITIES
Record Budget on an annual basis
Interim Financing (Bond Anticipation Notes)
Record Costs Charged to Projects
Interest on Temporary Investments is Revenue
Intergovernmental Grants are Revenues
Disposition of Bond Premiums/Discounts, Accrued Interest, and Issuance Costs

62. CPF Resources: Bond Issued at Premium
Issue Bond:
Cash 1,509,000
OFS - Bond Proceeds 1,509,000
Transfer Premium to Debt Service Fund:
Other Financing Uses 9,000
Cash (or Due to Debt Service Fund) 9,000

63. CPF Resources: Bond Issued at Discount
Issue Bond:
Cash 1,491,000
OFS - Bond Proceeds 1,491,000
Additional financing may have to come from a transfer from the general fund or project may have to be scaled back.

64. CPF Resources: Bond Anticipation Notes (BANS)
Issued as short-term “interim” financing
Accounted for in GLTDAG if:
maturity > 1 year or
maturity  1 year and
all steps have been taken to refinance on long-term basis
intent is supported by ability to consummate refinancing
All other BANS are current (Fund Liabilities)

65. CPF Resources: Special Assessments
Compulsory levy made against certain property to defray part or all of the cost of an improvement service
Assume general/specific benefit to property owners assessed
If proceeds from special assessment are related to debt --- is government obligated in some manner?
yes: credit OFS-Bond Proceeds
no: credit Contributions from Property Owners
Debt not issued --- Credit OFS-Transfer from Other Funds

66. CPF: Capital Project Funds: Year End
Project Complete
--- Close Revenues and Expenditures to Fund Balance
--- Transfer any residual fund equity to source(s)
Project Incomplete
Close revenues & OFS, Expenditures & OFU to the Fund Balance
Close open encumbrances against F. B. -- leave F.B.- Reserve for Encumbrance
Reestablish at beginning of next year:
Encumbrance xx
F.B. xx

67. CPF Acquisition: Capital Lease
Use FASB 13 criteria to assess lease contract
Entries:
Expenditure - Fixed Asset xx
Other Financing Sources xx
(Lease Liability recorded in GLTDAG)
Expenditure - Lease Principal xx
Expenditure - Lease Interest xx
Cash xx
(Fixed Asset recorded in GFAAG)

68. Debt Service Fund
Used to account for the financial resources accumulated to cover the payment of principal and interest on general government obligations
Used when legally mandated, or
Accumulating resources to satisfy term bond indenture
requirements for future years’ debt service payments

69. Debt Service Fund: Types of Debt Serviced
Most common are Bond Issues
usually serial debt
term bonds are rare
Capital Lease Obligations
Notes and Warrants Payable
Other

70. Debt Service Fund: Sources of Financing
Property Taxes (usually transferred in from another fund)
Sales Tax
Special Assessments
Income from Investments (net of any arbitrage)
Refunding or Defeasance

71. Debt Service Fund Special Assessment
Levied to provide for indebtedness incurred for general government special assessment projects.
Noncurrent Special Assessments Receivable: included in fund assets are offset by deferred revenue and do not result in revenue or affect fund balance

72. Debt Service Fund Expenditure Recognition
Modified Accrual: report principal and interest expenditures when legally payable (i.e., does not accrue unmatured principal or interest)
Accrual permitted, but not required, if:
resources for debt service accumulated in fund by year end and
payment due early next year
if accrual option is used, must accrue entire debt service payment due early next year

73. Debt Service Fund: Fund Balance Reserves
Excess of Assets over Liabilities
Fund Balance Reserved for Debt Service
Amount usually equal to highest year’s principal plus interest payments
“Amount Available” in GLTDAG at year end should equal amount in debt service fund for future principal payments
If not, then adjusting entry is made:
Amount Available xx
Amount to be Provided xx

74. Debt Service Fund Refunding Defined
Issuance of new debt to finance payment of interest and principal of existing debt
Current Refunding - use refunding proceeds to retire debt immediately
Advance Refunding - place proceeds in escrow and use to pay interest and principal in future (in-substance defeasance)
Reasons for Refunding or Defeasance:
Lower Effective Interest Rates
Extend Maturity Dates
Revise Payment Schedules
Remove or Modify Restrictions

75. Debt Service Fund: Reporting Refunding & Defeasances
Debt Service Fund Entry:
Cash xx
OFS-Proceeds of Refunding Bonds xx
Refunding issue is reported in General Long Term Debt Account Group
Defeased/Retired Debt is removed from General Long Term Debt Account Group

76. Account Groups General Fixed Assets - GFAAG
General Long-Term Debt - GLTDAG
Common Features:
Focus on general government as whole
Accounting procedures
List and Offset Accounting Entries
Primarily “add to/remove from” list

77. Classification of Fixed Assets
Land
Building (or Building and Improvements)
Infrastructure (or Improvements other than Buildings)
Machinery and Equipment
Construction in Progress (no capitalized interest)

78. General Fixed Asset Account Group
Acquisition and initial valuation
Cost
Estimated Cost
Gifts: Fair Market Value
Foreclosure: Lower of FMV or Amount Due for Taxes
Eminent Domain: Compensation to Owner
Escheat: FMV

79. Fixed Assets Not all funds account for & report capital assets
General Fixed Assets --- Fixed assets not accounted for in a specific fund are reported in the General Fixed Asset Group
Depreciation Expense --- not reported in the operating statement of the governmental funds
Accounting Equation for Fixed Assets
Fixed Asset = Investment in GFA---(Source of funding)

80. Classification of Investment in GFA by Financing Source
General Fund and Special Revenue Funds
General Revenues
Special Revenues
Capital Projects Funds
Long-Term Borrowing
Special Assessments
Intergovernmental Grants-in-Aid
Interfund Transfers

81. Fixed Asset Acquisition
Expenditure - Fixed Assets xx
Vouchers Payable (Cash) xx
(then fixed asset is recorded in account group)
If borrow to acquire the asset:
Cash xx
Other Financing Sources xx
(then long-term debt is recorded in account group)

82. Long-Term Liabilities
Certain funds account for and report long-term liabilities.
Long-term liabilities not accounted for in a specific fund are General Long-Term Liabilities (GLTL)
Accounted for in the General Long Term Debt Account Group
Liability of the government as a whole and not that of any specific fund.

83. General Long Term Debt Account Group
All unmatured debt except that of the Proprietary Funds
Unmatured Principal
Secured (typically) by Full Faith & Credit
Not a liability of any one fund

84. GLTD --- Examples General Government: Bond Issue
Special Assessment Debt
Long-term Notes
Claims and Judgments
Compensated Absences
Capital Lease Liabilities
Unfunded Pension Contributions
Unfunded Landfill Closure and Postclosure Care

85. GLTDAG: Accounting Equation
When Incurred:
Amount to be provided = Long-term obligation
While Debt is Outstanding:
(Amount available + Amount to be provided) = Long-term obligation
When Debt Matures:
Reverse Accounts from Account Group

86. PROPRIETARY FUNDS

87. Proprietary Funds
Pertaining to a Proprietor: Users of goods or services --- charged on the basis of consumption
Types
Enterprise: Goods or Services provided to the General Public
Internal Service: Goods or Services provided Inter or Intra- Governmental Units

88. Proprietary Funds: Common Features
Accounting - Full Accrual
Fixed Assets and Long-Term Debt maintained in the fund
Applicability of Pertinent Business (i.e., FASB) Pronouncements
Reporting Interfund Transactions
Financial Statements Required

89. Proprietary Funds Accounting Principles
Similar to For-Profit Enterprises
GAAP applied except where it has been specifically overridden by a GASB pronouncement
GASB #20:
Must apply all pertinent GAAP (ARBs, APBs, SFASs, etc.) through SFAS 102 unless conflict
May apply GAAP from SFAS 103 to present --Choices
apply ALL, unless conflict or
apply NONE, unless adopted by GASB
GASB #34: May apply those FASB standards and interpretations limited to NFP organizations

90. Proprietary Funds Financial Statements
Balance Sheet
Statement of Revenues, Expenses, and Changes in Net Assets
Statement of Cash Flows
Plus:
Combining Statements
Segment Information

91. Enterprise Funds
Fund use is mandatory to account for operations financed or operated like a business
Provide goods/services, to the public, on continuing basis for a fee
Intended to recover (most of) the full costs of providing goods/services
Use is optional when the entity engages in activities for which the governing body deems net income type information appropriate

92. Examples of Enterprise Funds:
Public Utilities
Public Transportation Systems
Recreational Facilities
Parking Facilities
Lotteries
Airports
Hospital/Healthcare Facilities
Landfills

93. Enterprise Funds Non-operating Revenues
Capital Contributions
Operating Transfers
Loans
Others
Grants
Tap Fees
Impact Fees
Internal and External Subsidies
Debt Forgiveness from General Government

94. Enterprise Funds Capital Contribution
Recorded as Interfund Transfer
Included in the Statement of Revenues, Expenses, and Changes in Net Assets as Nonoperating Revenue
No separate Contributed Capital on Balance Sheet
Not “Residual Equity Transfers”

95. Enterprise Funds Restricted Assets
Way to have a “Fund within a Fund”
Distinctively titled Restricted Asset, Liability and Equity Reserve Accounts
Customer Deposits
Construction Financed by Bond Issue
Debt Service
Contingencies

96. Internal Service Fund Services to Other Governmental Departments
Cost-Reimbursement Basis
Intermediary Fiscal and Accounting Entity
Economy/Efficiency
Equitable Cost Sharing

97. Internal Service Fund Pricing Policies
Charges should be Based on Cost
Charges cannot be excessive
Pricing often includes Total Costs and Total Consumption of Goods or Services

98. Fiduciary Funds

99. Fiduciary Funds
Used to account for assets received and held by government acting as trustee or custodian for individuals, organizations, businesses, or other governments
Difference - Duration of Fiduciary Responsibility
Agency Fund – Short-Term Fiduciary Responsibility
Trust Funds – Long-Term Fiduciary Responsibility

100. Types of Trust Funds Private Trust Expendable Nonexpendable
Investment Trust
Pension Trust

101. Trust Funds Private Purpose Expendable
Can spend both Principal (Corpus) and Earnings
Financial Statements
Statement of Net Assets
Statement of Changes in Net Assets

102. Trust Funds: Private Purpose Nonexpendable
Can Spend Only Earnings
Principal (Corpus) Stays Intact
Financial Statements
Statement of Net Assets
Statement of Changes in Net Assets

103. Investment Trust Funds
Used to Account for Pooled Investment Funds and Other Investment Activity
Financial Statements
Statement of Net Assets
Statement of Changes in Net Assets

104. Pension Accounting GASB 25 Annual Pension Cost - Actuarial Method
Acceptable Annual Required Contribution (ARC)
Determination of Normal Cost
Unfunded Actuarial Accrued Liability and Amortization

105. Pensions ARC - Actuarial Required Contribution
Portion of ARC that will be paid from current resources
Expenditures - Pension Benefits xx
Accrued Wages and Salaries xx
Portion of ARC that will be paid in future
Amount to be provided... xx
Long-term liability for pension benefits xx

106. Pension Claims and Judgements
Follow FASB 5: Accrue if probable and reasonably estimable
Amount to be paid from current resources
Expenditures - Claims/Judgments xx
Accrued Claims and Judgments xx
Amount to be paid in the future
Amount to be Provided... xx
Long-term Liability for Claims and Judgments xx

107. Pension Reporting Statement of Net Plan Assets Investments at FMV
Fixed income securities not amortized
Fixed assets reported at depreciated cost
No liability reported for actuarial present value of future benefits
Actuarial information (must comply with established parameters & assumptions) reported as Required Supplementary Information (RSI)
Statement of Changes in Net Plan Assets
Reports on additions and deductions
Identifies changes in net plan assets

108. Agency Funds Used for Tax Collections for Other Governments
Payroll Deductions
Pass-Through Grants
Grants, Entitlements, Shared Revenue
GASB required Agency Funds
Government has no program/discretion
No obligation special assessment debt service

109. Agency Funds Assets = Liabilities Statement of Net Assets
Accounting Equation
Assets = Liabilities
Financial Statement
Statement of Net Assets

110. FINANCIAL REPORTING

111. Coverage of Fund Accounting Procedures

112. The Operating Statement for Governmental Fund
REVENUES: Always classified by source.
EXPENDITURES:
Classified by character:
Current, Capital Outlay, or Debt Service
Then by function (for example):
Health, Welfare, Sanitation, Public Safety

113. OPERATING STATEMENT FORMAT
OPERATING STATEMENT--Use the “all-inclusive” format which includes the analysis of the fund balance (modified accrual basis funds) or net assets (accrual basis funds) for the period:
Revenues (Inflows) Expenditures (Outflows) Excess of Revenues over Expenditures
Fund Balance, 1/1/11
Fund Balance, 12/31/11

114. Balance Sheet Format
BALANCE SHEET--Display restrictions of the fund balance in the following manner:
Fund Balance: Reserved for encumbrances…$ 33, Unreserved , Total Fund Balance $450,000
Numerous types of restrictions can exist--thus several types of “reservations” may be used.

115. Time to Clear Things Up --- Any Questions?