Government Wide versus Gov't Fund Statements

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  • #194386
    Anonymous
    Inactive

    I get the accrual vs. modified accrual rules, but it would seem that although you are not capitalizing assets in the governmental fund, you have to make those entries somewhere if you are going to report them on the government wide statements.

    Is my thinking right here, it sounds so straight forward initially (i.e., just book everything as an expenditure when it’s paid for in a governmental fund and you’re done), but if they do that how do they arrive at a value for fixed assets on the government wide statements.

    Initially I thought that the only assets reported and depreciated were those in the proprietary and fiduciary funds, but it doesn’t look like that the case.

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  • #667730
    jw_83
    Member

    On the Fund financial statements, a capital asset that was purchased in the current year is an expense. It is usually listed as a separate line item under capital outlay. But when you do the government wide financial statements, you include the expense in the capital assets and you book the depreciation. There is a reconciliation between the statements that shows this as well as other items, such as long term debt. To get the total value of capital assets and accumulated depreciation, the entity keeps a depreciation schedule.

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    #667731
    tami3492
    Participant

    Governments kind of do two sets of financials, one at modified accrual reporting the funds individually, and the other is Gov-Wide at a full accrual. The Gov-Wide statement does include fixed assets, so AJE's need to be done to bring the fund financials to full accrual.

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    #667732
    Anonymous
    Inactive

    Yes it was while I was looking at a reconciliation for a locality that I realized there had to be two complete sets of books. Thanks!

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