Basics of Fund Accounting Budgetary

1
Basics of Fund AccountingBudgetary

• Chapter 2

2
Purpose of the Budget

• Accountability
• Planning
• Control
• Periodic monitoring of budgeted amounts
• Evaluation
• GASB position
• Adopt annually
• Use terminology classifications consistently
  (budget FS)

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Budgetary Process

• Preparation
• Done in accordance with legal requirements
• May not be GAAP basis
• Adoption
• Legal administrative levels of control
• Execution
• Evaluation

4
Budget Terminology

• Original budget
• Budget adjustments
• Final budget
• Estimated revenues
• Appropriations

5
Types of Budgets

• Fixed
• Fixed amounts appropriated for spending
• Governmental funds
• Flexible
• Increase/decrease spending based on demand
• Proprietary funds

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Budgetary Accounting Terms

• Budgetary basis
• Estimated revenues
• Estimated other financing sources
• Appropriations
• Legal authorizations
• Estimated other financing uses
• Encumbrances
• Commitments

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Budgetary Accounting Terms

• GAAP basis
• Revenues
• Earlier of when
• Received
• Measurable available
• Within 60 days
• Expenditures
• Incurred payable from currently available
  financial resources
• Other financing sources/uses

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Expenditure Accounting

• Process
• Appropriation
• Encumbrance
• Goods/services received/rendered
• Bill received
• Bill paid
• Effect of technology
• Expenditure matrix exercise

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Chapter Exercises Part 2

• Problems on page 42
• 2-9
• 2-11