Your Ask Joey ™ Answer

You might also be interested in...

  • What are the different types of governmental funds?

    There are five main types of government funds, which includes the general fund, the capital projects fund, the permanent fund, the special revenue fund, and the debt service fund. 1) The General Fund: The General Fund is used to account for ordinary operations of a governmental unit and is financed from taxes as well as other general revenues. All funds coming from the general fund are “current” fund and will not contain long-term assets or liabilities. The General Fund will be used for administrative and operational tasks of the governmental entity. 2) Capital Projects Fund: The Capital Projects Fund is a governmental fund that is used for tracking the financial resources used to acquire or construct major capital assets. 3) Permanent Fund: The Permanent Fund is a fund used to report resources that will legally restrict the entity to the extent that income, and not principal, will be used to support the governments programs or the benefit of the general public. 4) Special Revenue Fund: The Special Revenue Fund is a set up to account for revenues from specific taxes to finance certain governmental activities. 5) Debt Service Fund: The Debt Service Fund is set up to account for payment of principal and interest on both short-term and long-term debt for government entities.

  • What are the regulations related to reporting of fund balances under GASB 54?

    GASB 54 identifies regulations related to the reporting of fund balances and their respective components. Additionally, this guidance identifies any constraints on resources as well as the sources of those constraints. Fund balances should be reported based on the perception of the applicable resources that pertain to the given fund balance by applying classifications that comprise of a hierarchy that is fundamentally based on the extent to which the government is assured. The 5 components are unassigned fund balance, nonspendable fund balance, assigned fund balance, restricted fund balance, and committed fund balance.