Question: This chapter has described the fund structure in governments Do
This chapter has described the fund structure in governments. Do you think that it is necessary to display individual funds in a government’s annual report? If so, then do you think it is any less necessary to display individual funds in a not-for-proﬁt’s annual report? On what basis can you justify displaying funds in the annual report of a government but not in that of a not-for-proﬁt entity?
Answer to relevant QuestionsA school district receives a grant from the federal government to support programs directed at special needs students. The grant is a matching grant in which each dollar spent by the school district on teacher salaries for ...Why do most governments and not-for-proﬁts budget on a cash or near-cash basis even though the cash basis does not capture the full economic costs of the activities in which they engage?What is the purpose and effect of reinstating year-end encumbrances on the books at the beginning of the following year?At the start of its ﬁscal year on October 1, Fox County reported the following (all dollar amounts in thousands):Fund balance:Committed for encumbrances . $200Unassigned ......... 400Total fund balance ....... $600During ...Shown below is an excerpt from a note, headed Budgets, from the City of Raleigh, North Carolina, annual report for the ﬁscal year ended June 30.1. The note distinguishes between the “budget ordinance” and the “more ...
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