#04 - GFOA Certificate of Achievement Program

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Debt that was issued for capital purposes should not be part of the calculation of the net investment in capital assets until the proceeds have been used to acquire capital assets. Note that the unspent bond proceeds should be reported as either restricted (most often) or unrestricted (sometimes) assets, as appropriate, and the related portion of the bonded debt should be reported in the same component of net position as the unspent proceeds, and therefore will not have any net effect on any classification of net position. [GASB Cod. Sec. 2200.118, .708-10; GASB-S63: 9; Q&A 7.23.2; eGAAFR Chapter 19 - Presentation of net position] 107 - Fund financial statements (general considerations) Comment Number: 1291 Checklist Question: 7-001-05 Refer to page 38. The EDA does not appear to meet the criteria to be blended. Please explain how the EDA provides services entirely or almost entirely to the City government rather than to the citizens. This comment is provided as a reminder. One criterion for blending is that a component unit provides services entirely or almost entirely to the primary government. The purpose of this criterion is to identify situations where a component unit has the characteristics of an internal service fund (i.e., it exists to serve the government or its employees as an administrative entity). Consequently, component units that provide services directly to citizens or other parties outside the government do not meet this criterion. [GASB Cod. Sec. 2600.112-.113; GASB-S61: 8b; GASB-S80: 5; Q&A 4.30.2 and 4.32.2; eGAAFR Chapter 6 - Blended component units] 109 - Proprietary fund financial statements Comment Number: 1463 Checklist Question: 9-003-05 Page 35 - The "capital contributions from private sources." Capital contributions should be reported after nonoperating revenues and expenses. [GASB Cod. Sec. 2200.191; GASB-S34: 100-101; eGAAFR Chapter 15 - Revenue] Comment Number: 1492 Checklist Question: 9-005-08 Page 37 - Refer to the City's response to this comment. Include the capital accounts and retainage payable. This comment is provided as a reminder. Information should be provided (either on the face of the statement or on an accompanying schedule) about any noncash investing or financing activities that affected assets and liabilities reported on the statement of fund net position (e.g., the increase of assets and liabilities resulting from the initiation of a lease). [GASB Cod. Sec. 2450.133; GASB-S9: 37; Q&A 2.32.2; eGAAFR Chapter 15 - Statement of cash flows-Format] Comment Number: 1530 Page 35 - Report the capital assets transferred from the governmental activities as "capital contributions" rather than "transfers" in the operating statement of the proprietary funds, even though the amount is reported as a transfer on the statement of activities. A capital contribution from a governmental fund to a proprietary fund should be reported as a contribution rather than as a transfer. [Q&A 7.74.4]