CGFM flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Interperiod equity
- The principle that current-period revenues should cover the cost of current-period services so that costs are not shifted to future taxpayers.
- Dillon's Rule
- Legal doctrine holding that local governments possess only powers expressly granted by the state, powers necessarily implied, and powers essential to their declared purposes.
- GASB
- Governmental Accounting Standards Board: the independent standard-setting body for U.S. state and local government financial reporting, established in 1984.
- FASAB
- Federal Accounting Standards Advisory Board: issues federal GAAP, which becomes authoritative after review by the GAO, Treasury, and OMB principals.
- Block grant
- Intergovernmental aid given for a broad functional purpose with few conditions, allowing the recipient government wide discretion in how funds are spent.
- Categorical grant
- Aid restricted to a specific program or purpose, frequently requiring a matching contribution or maintenance of effort from the recipient government.
- Three branches of government
- Legislative power makes laws under Article I, executive power enforces them under Article II, and judicial power interprets them under Article III.
- Fund accounting rationale
- Separate funds are used because legal and budgetary restrictions require that certain resources be accounted for and spent only for specified purposes.
- Modified accrual basis
- Governmental fund basis: revenues are recognized when measurable and available, and expenditures when the related liability is incurred.
- Fund balance classifications
- Nonspendable, restricted, committed, assigned, and unassigned: the five GASB 54 categories reported for governmental fund balances.
- Major fund criteria
- A fund is major if it is at least 10 percent of its fund type and at least 5 percent of all governmental and enterprise funds combined.
- Encumbrance
- A commitment of appropriated funds for a specific future purchase, recorded in governmental funds to prevent overspending the adopted budget.
- Proprietary funds
- Enterprise and internal service funds; they use the economic resources measurement focus and full accrual basis and report net position.
- Deferred inflows of resources
- Resources not yet available to pay current-period expenditures; recognized as revenue in the period they become available or the claim arises.
- Statement of activities
- Government-wide statement reporting net expense by function after program revenues, plus general revenues, to arrive at the change in net position.
- Net investment in capital assets
- Net position component equal to capital assets net of accumulated depreciation, less outstanding debt attributable to acquiring or improving those assets.
- MD&A
- Management's Discussion and Analysis: required supplementary information giving a plain-language overview of the year's financial activities and analysis of the basic statements.
- Comprehensive Annual Financial Report
- The complete annual report of a government, containing introductory, financial, and statistical sections; the financial section includes MD&A and the basic financial statements.
- Budgetary comparison schedule
- Required supplementary information comparing original and final budgets with actual amounts, with variances, for the general fund and major special revenue funds.
- Program revenues
- Charges for services, operating grants and contributions, and capital grants and contributions, presented on the statement of activities to offset function expenses.
- Zero-based budgeting
- A method requiring each activity's costs to be justified from zero each budget cycle instead of using the prior year's base.
- Statistical section
- CAFR section with up to ten years of trend data on revenues, debt, financial position, and demographics; it is unaudited.
- Balanced budget equation
- Budgeted revenues plus other financing sources equal appropriations plus other financing uses plus or minus the planned change in fund balance.
- Popular Annual Financial Report
- A summarized, citizen-friendly extract of the CAFR that omits notes and detailed statements and is not GAAP-based.
- Green Book
- GAO Standards for Internal Control in the Federal Government, organized into five components and seventeen principles that apply to federal entity operations.
- Single audit threshold
- A single audit is required when federal award expenditures reach $750,000, rising to $1,000,000 for fiscal years beginning on or after October 1, 2024.
- Fraud triangle
- Three conditions linked to fraud: pressure or incentive, opportunity to commit it, and rationalization or attitude that justifies the act.
- Yellow Book
- Generally Accepted Government Auditing Standards issued by the GAO, covering financial audits, attestation engagements, and performance audits with independence and CPE requirements.
- Investment objectives order
- Public-funds investing prioritizes safety of principal first, liquidity second, and yield last, in that order.
- Audit finding elements
- Criteria, condition, cause, and effect, plus a recommendation: the elements used to report deficiencies in performance audits.
- Segregation of duties
- Separating authorization, custody of assets, and recordkeeping among different employees so no single person controls a whole transaction.
- Arbitrage rebate
- Interest earnings on tax-exempt bond proceeds above the bond yield must be rebated to the U.S. Treasury unless an exception applies.