Governmental accounting(Part B)

　　GASB 34 is the governmental reporting standards

　　Governmental reporting = Basic financial statements(F/S)+Required supplementary information(RSI)

　　F/S=government-wide financial statements+fund financial statements+notes

　　RSI=Management‘s discussion and analysis(MD&A)etc.

　　Two types of accountability focused by governmental reporting.

　　Operational accountability focus is to report the extent to which the government has met its operating objectives efficiently and effectively，using all resources available for that purpose，and the extent to which it can continue to meet its objectives for the future.

　　Fiscal accountability focus is to demonstrate that government entity‘s actions in the current period has complied with public decisions concerning the raising and spending of public funds in the shouirt-term.

　　The integrated approach requires financial accounting and disclosure to show operational(government-wide F/S)and fiscal(fund F/S)accountability individually and to show the relationship between operational and fiscal accountability through a reconciliation.

　　Required reporting for general purpose government units include：

　　Management‘s Discussion and Analysis(MD&A)

　　Government-wide F/S(Statement of Net Position+Statement of Activities)

　　Fund Financial Statements

　　Notes to Financial Statements

　　Required Supplementary Information(RSI)other than MD&A

　　Other supplementary Information

　　Government-wide F/S include “Statement of Net Position” +“Statement of Activities”

　　Governmental Funds F/S include “Balance Sheet”+“Statement of Revenues，Expenditures，and Changes in Fund Balances”

　　Proprietary Funds F/S include “Statement of Net Position”+“Statement of Revenues，Expenses，and Changes in Fund Net Position”+“Statement of Cash Flows”

　　Fiduciary Funds F/S include “Statement of Fiduciary Net Position”+“Statement of Changes in Fiduciary Net Position”

　　RSI include “Pension”+“Budgetary comparison schedules”+“Infrastructure information and assets using the modified approach”

　　Optional reporting-Comprehensive Annual Financial Report(CAFR)

　　CAFR=Introductory section+Required reporting+Statistical section.

　　Introductory section=letter of transmittal+Organizational chart+List of principal officers

　　Statistical section=10 years of selected financial data+10 years of economic data+other data

　　The financial reporting entity classification

　　1st tier Primary government Vs.Component(“SELF” test)

　　2nd tier Component unit‘s Blended presentation Vs. Discrete presentation(“SON” test)

　　A primary government consists of all organizations that make up the legal government entity.The primary government is considered the nucleus of the financial reporting entity.(联邦政府，州政府，县政府)

　　A component unit of a primary government is a legally separate organization for which the elected officials of the primary government are financially accountable.It may also be a separate organization，but its nature and the significance of its relationship with the primary government are such that exclusion of the unit‘s information would cause the primary government’s financial statements to be misleading or incomplete.(县教委， 县公安局)

　　If an unit meet ALL the three criteria(“Self”)，then it is a primary government.

　　“Self”：Has a separately-elected governing body?

　　“Self”：Is legal separate?

　　“Self”：Is fiscally independent of other state and local governments?

　　If an unit NOT meet ALL the three criteria(“Self”)，then it is a component unit.

　　If a component unit meet ANY the three criteria(“Son”)，then it should use blended presentation(rare)。县办的信息披露

　　“Son”：The board of the primary government is same as the component unit?

　　“Son”：The component unit only serve the primary government(exclusively service)

　　“Son”：The organization does not qualify as a legal entity.

　　If an unit NOT meet Any the three criteria(“Son”)，then it should use discrete presentation(most often)。县教委的信息披露