Reconciliation requirements
Area 3: State and Local Government Concepts (10-20%)
Your Progress
0 of 67 questions attempted
Topics
- Fund to government-wide reconciliation
- Capital asset and long-term liability adjustments
Study Frameworks
Government Fund-to-Government-Wide Reconciliation Adjustments
Reconciliation: Fund Statements → Government-Wide Statements
Capital Asset Adjustments
Add: Capital assets net of depreciation (not in fund BS)
Add back: Capital outlay expenditures (capitalized, not expensed, government-wide)
Subtract: Depreciation expense (not in funds, recognized government-wide)
Adjust: Gain/loss on disposal (funds record full proceeds as revenue; government-wide records only gain/loss)
Long-Term Liability Adjustments
Subtract: GO bonds, compensated absences, net pension liability, net OPEB liability
Subtract: Bond proceeds (other financing source in funds → liability government-wide)
Add back: Debt principal payments (expenditure in funds → reduces liability government-wide)
Adjust: Changes in accrued interest, compensated absences, pension/OPEB amounts
Deferred Inflows/Outflows
Add: Unavailable revenue (deferred inflow in funds → revenue government-wide)
Add: Deferred outflows — pensions and OPEB (GASB 68/75)
Subtract: Deferred inflows — pensions and OPEB (GASB 68/75)
Internal Service Fund
Add: Internal service fund net position (included with governmental activities)
Add: Internal service fund change in net position (activity statement)