Course Outline of Record

Item	Value
Curriculum Committee Approval Date	03/11/2020
Top Code	050200 - Accounting
Units	3 Total Units
Hours	54 Total Hours (Lecture Hours 54)
Total Outside of Class Hours	0
Course Credit Status	Credit: Degree Applicable (D)
Material Fee	No
Basic Skills	Not Basic Skills (N)
Repeatable	No
Grading Policy	Standard Letter (S),  Pass/No Pass (B)

Course Description

This course covers fund accounting, budget and control issues, revenue and expense recognition, and issues of reporting for governmental agencies. Many of the topics covered may be used to prepare for portions of the CPA exam. PREREQUISITE: ACCT A100 or ACCT A101 or ACCT A101H. Transfer Credit: CSU.

Course Level Student Learning Outcome(s)

1. Demonstrate knowledge of appropriate governmental accounting transactions and their impact on financial statements.
2. Assess and interpret the accounting information contained within a governmental Comprehensive Annual Financial Report.

Course Objectives

• 1. Understand the government environment.
• 2. Understand fund accounting.
• 3. Understand the issues of budgeting and control.
• 4. Recognize revenues in governmental funds.
• 5. Recognize expenditures in governmental funds.
• 6. Account for capital projects and debt service.
• 7. Understand capital assets and investments in marketable securities.
• 8. Understand long-term obligations.
• 9. Understand business-type activities.
• 10. Understand fiduciary funds and permanent funds.
• 11. Understand issues of reporting, disclosure and financial analysis.

---

Lecture Content

The Government and Not-For-Profit Environment How do governments and not-for-profits compare with businesses. What other characteristics of governments and not-for-profits have accounting implications. What are the overall purposes of financial reporting. Who are the users and what are the uses of financial reports. What are the specific objectives of financial reporting set forth by GASB and FASB. Who establishes generally accepted accounting principles. Fund Accounting What is a fund. What are the key elements of government financial statements. What characterizes funds. What are the main types of a governments funds. What is included in a government Comprehensive Annual Financial Report. Issues of Budgeting and Control What are the key purposes of budgets. Why is more than one type of budget necessary. How are expenditures and revenues classified. Why are performance budgets necessary. What are the key phases for the budget cycle. What cautions must be taken in budget-to-actual comparisons. Recognizing Revenues in Governmental Funds Why and how do governments use the modified accrual basis. What are the main types of nonexchange revenues and the limitations on how and when they can be used. How should the following be accounted for. Property taxes Sales taxes Grants Sale of capital assets Investment gains and losses Interest and dividends Licenses and permits Recognizing Expenditures in Governmental Funds How is the accrual concept modified for expenditures. How should the following be accounted for. Wages and salaries Compensated absences Claims and judgments Acquisition and use of materials and supplies Prepayments Capital assets Long-term debt Nonexchange expenditures Interfund transactions Accounting for Capital Projects and Debt Service How do governments account for the following: Capital projects funds Resources dedicated to debt service Special assessments Capital Assets and Investments in Marketable Securities What accounting practices do governments follow for general capital assets. Why and how should governments report infrastructure. How should governments account for assets that have been impaired. What issues are critical to investments in marketable securities. Long-Term Obligations Why is information on long-term debt useful. Can governments go bankrupt. How do governments account for long-term debt. What constitutes a governments long-term debt. Business-Type Activities What types of funds involve business-type activities. Why do governments engage in business-type activities. Should business-type activities be accounted for differently than governmental activities. What are the three basic statements of proprietary fund accounting. Fiduciary Funds and Permanent Funds What are permanent funds and how are they distinguished from fiduciary funds. What are expendable and nonexpendable funds. How can institutions protect against inflation. How are governmental pensions and retirement plans accounted for. Issues of Report ing, Disclosure, and Financial Analysis How can a government prepare government-wide statements from fund statements. Why is the reporting entity an issue for governments. What other elements make up the Comprehensive Annual Financial Report. What are the reporting requirements for special-purpose governments. How can a governments fiscal condition be assessed.

Method(s) of Instruction

• Lecture (02)
• DE Online Lecture (02X)

Instructional Techniques

A. Lecture including PowerPoint slides, handouts, text reading, problems and appllication of concepts. B. Individual and group problem-solving activities C. Guest Lecturers D. Internet assignments

Reading Assignments

This course requires 4.5 to 6 hours of reading each week. - Materials from State and Federal regulartory agencies.- Materials from text and class resources.

Writing Assignments

Analysis of various state and local governmntal financial statements Preparation and interpretation of financial and regulatory reports Case problems in governmental accounting

Out-of-class Assignments

Analysis of various state and local governmntal financial statements Preparation and interpretation of financial and regulatory reports Case problems in governmental accounting

Demonstration of Critical Thinking

A. Exams on course content testing recall, comprehension, analysis and problem solving skills B. Computing assignments manually, written assignments, group activities involving selected topics appropriate to subject matter. C. Midterm and final examination

Required Writing, Problem Solving, Skills Demonstration

A. Analysis of accounting data B. Interpretation of financial reports C. Case problems in accounting

Eligible Disciplines

Accounting: Masters degree in accountancy or business administration with accounting concentration OR bachelors degree in business with accounting emphasis or business administration with accounting emphasis or economics with an accounting emphasis AND masters degree in business, business administration, business education, economics, taxation, or finance OR the equivalent. Masters degree required. (NOTE: A bachelors degree in accountancy or business administration with accounting concentration, with a CPA license is an alternative qualification for this discipline)

Textbooks Resources

1. Required Granof, M., Khumawala, S.. Government and Not-for-Profit Accounting: Concepts and Practices, 6th ed. New Jersey: John Wiley Sons, Inc, 2015

Other Resources

1. Selected governmental Comprehensive Annual Financial Reports.