Reporting Requirements for Annual Financial Reports of State Agencies and Universities Show
General Accounting Government-wide Financial Statements Program and General Revenue ClassificationGASB 34 requires the government-wide statement of activities to report all changes (inflows and outflows of resources) in a government’s net position. The inflows of resources include program revenue, general revenue and others. GASB 34 requires inflows of resources reported on the government-wide financial statement to be classified as:
There are four basic sources of revenue that fall under program or general revenue.
Program RevenuesProgram revenues either derive directly from the program or from parties outside the reporting government’s taxpayers or citizenry. These revenues reduce the net cost of the function to be financed from the government’s general revenues. The statement of activities separates the three categories of program revenues into:
When identifying the function that pertains to program revenue, the determining factor for charges for services is the function that generates the revenue. For grants and contributions, the determining factor is the function to which the revenues are restricted. Charges for ServicesCharges for services is the term used for a broad category of program revenues generated from charges to customers, applicants or others who purchase, use or directly benefit from the goods, services or privileges provided or are otherwise directly affected by the services. This category of revenues includes:
Program-Specific Grants and ContributionsIncluded in this category of revenues are those resulting from mandatory and voluntary non-exchange transactions with other governments, organizations or individuals that are restricted for use in specific programs. These revenues reduce the net expense of the related program to the reporting government and are designated as either:
According to GASB 99, SNAP (Supplemental Nutrition Assistance Program, formerly food stamps) is classified as a Type B revenue source. Agencies that have SNAP revenues will report them as program revenues because they are specifically attributable to a program and reduce the net cost of that program to the reporting agency. Note: Multi-purpose grants that do not provide specific identification of programs and amounts are reported as general revenues. Earnings on InvestmentsReport earnings on endowments or permanent fund investments as program revenues (operating grants and contributions) if the earnings are restricted to a program or programs specifically identified in the endowment or permanent fund agreement or contract. When earnings on the invested accumulated resources of a program are legally restricted for use by such program, reduce the net cost financed by the government’s general revenue and report the investment earnings as program revenues. Similarly, earnings on investments not held by permanent funds may also be legally restricted to certain functions or programs and are reported as program revenues. Note: Earnings that finance “general fund programs” or “general operating expenses” are not reported as program revenue. General RevenuesAll revenues except those required to be reported as program revenues are general revenues. Examples of general revenue include:
General revenues are reported after the net (expense) revenue of the government’s functions. The following types of financing sources from governmental and business-type activities are reported in the same manner as general revenues but are reported separately at the bottom of the statement of activities to determine the change in net position for the reporting period:
Which group of government financial statements reports all revenues and all costs as well as all assets and liabilities of government entity?Which group of government financial statements reports all revenues and all costs as well as all assets and liabilities of the governmental entity? Government-wide financial statements. Funds used to account for a government's ongoing activities that are similar to those operated by for-profit organizations.
What are the financial statement used by the government?The government financial statements usually include a statement of activities (similar to an income statement in the private sector), a balance sheet and often some type of reconciliation. Cash flow statements are often included to show the sources of the revenue and the destination of the expenses.
What is on the governmental fund balance sheet?The governmental funds balance sheet presents first a government's assets, resources it controls that enable it to provide services. (See Figure 1.) Given the basis of accounting, these assets are generally current in nature—cash, short-term investments, and short-term receivables.
What statements are required for governmentRequired governmental fund statements are a balance sheet and a statement of revenues, expenditures, and changes in fund balances.
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