Course Information

Governmental accounting relies on fund accounting and financial statements to track public resources and ensure compliance with Governmental Accounting Standards Board (GASB) standards. Governments use a dual-perspective model—combining full accrual and modified accrual accounting—to assess long-term operational effectiveness and monitor short-term fiscal accountability. To maintain transparency and compliance, public sector accountants must have strong skills in preparing and interpreting governmental financial statements. This two-part course focuses on the unique accounting, budgeting, and financial reporting standards used by state and local governments, offering various topics such as:

• Governmental Accounting Environment: Discuss how distinct environmental factors shape governmental accounting practices;
• Fund Accounting Systems: Explore how governments segregate financial resources into independent, self-balancing fiscal entities to track specific activities and ensure legal compliance;
• Fund Accounting & Measurement Focus: Explain the differences between the accrual and modified accrual bases of accounting, with a focus on the criteria and timing for recording revenues, expenses, and expenditures;
• Classification and Terminology: Outline common classification and terminology to ensure uniformity across all funds and activities in budgeting, accounting, and reporting;
• Budgetary Compliance: Describe how the budgetary process serves as a legally binding roadmap for managing revenue and spending; and
• Financial Statement Reporting: Identify components of an annual comprehensive financial report (ACFR) and explore the construction and content of the basic financial statements.

Through practical examples, you will gain a clear understanding of how governments track funds, report financial activity, comply with GASB standards, and maintain stakeholder transparency.

This edition of the course has been updated to be consistent with the GASB Codification as of July 2026.

1. Identify the unique environmental factors shaping governmental accounting
2. Distinguish governmental accounting and business accounting
3. Recognize the appropriate fund for recording standard transactions
4. Identify the proper measurement focus and basis of accounting to various scenarios
5. Recognize how long-term liabilities impact the basic financial statements
6. Recognize how to report capital assets under the basic financial statements
7. Identify the key events that qualify as other financing sources and other financing uses
8. Identify the criteria for distinct fund balance classifications
9. Distinguish between the three categories of net position
10. Identify proper accounting treatment for exchange and nonexchange transactions
11. Differentiate operating revenues from nonoperating revenues
12. Recognize how the budgetary process promotes fiscal accountability
13. Recognize fund-to-government-wide reconciliation requirements
14. Identify key information presented on the basic financial statements
15. Recognize disclosure requirements for notes to financial statements