SUFFOLK COUNTY COMMUNITY COLLEGE COLLEGE-WIDE COURSE SYLLABUS
I. COURSE TITLE: Governmental Accounting
II. CATALOG DESCRIPTION: 2004 – 2006 Introduction to concepts and procedures of fund accounting as applied to government and nonprofit institutions. Topics include principles of fund accounting, appropriations, encumbrances, expenditures, and problems and procedures related to use and control aspects of budgets. Prerequisite: AC11 A-E-G 3 credit hours.
III. GOALS OF THE COURSE: The accounting faculty will assist accounting and non-accounting majors to achieve the desired learning outcomes listed below. In addition, the faculty will provide an opportunity for all students to develop, improve, expand and practice their written and oral communication, teamwork, research, analytical and decision-making skills.
To that end, upon successful completion of the course, students will have the ability to:
A. Identify, measure and communicate financial information about governmental and not-for-profit entities to interested parties; B. Explain how governmental accounting assists in the efficient use of scarce resources; C. Identify some of the challenges facing accounting. D. Identify the objectives of financial reporting for governments and non- profits; E. Explain the need of governmental accounting standards; and F. Identify the major policy-setting bodies and their role in the standard- setting process.
IV. STUDENT LEARNING OUTCOMES: Upon successful completion of AC26 – Governmental Accounting students will be able to:
A. Describe the characteristics that distinguish governments and not-for-profit organizations from businesses, and the accounting and reporting implications of these characteristics; B. Explain the information requirements of the main users of the financial reports of governments and not-for-profit entities; C. Describe the nature of funds, including why they are used and the interrelationship among them; D. Account for the basic fund-types used by government – governmental funds, proprietary funds and fiduciary funds; E. Prepare the primary financial statements-both government wide and fund- issued by governments; F. Explain how the fund structures and financial reports of not-for-profits differ from those of government; G. Describe the key purposes of budgets, the various ways of classifying expenditures and the limitations of actual-to-budget comparisons; H. Explain why governments focus on current financial resources and use the modified accrual basis to account for their governmental funds; I. Account for various (property taxes, fines, sales tax, income taxes, grants) types of revenues; J. Employ the modified accrual basis of accounting for expenditures and explain the rationale for the differences between that basis and the full accrual basis; K. Explain why and how governments uses capital projects funds to account for resources accumulated to acquire long-lived assets; L. Account for debt service funds; M. Explain arbitrage and why it concerns governments; N. Account for special assessments; O. Account for fixed assets; P. Explain why information on long-term debt is important to statement users; and Q. Explain why governments and not-for-profits engage in business-type activities.
V. ACADEMIC PROGRAMS THAT REQUIRE AC26 Governmental Accounting is not required by any degree program, however, it is offered as an elective in these programs: Accounting: A.S. Degree Accounting: A.A.S. Degree
VI. MAJOR TOPICS REQUIRED (37½ Hours)
UNIT ONE: THE GOVERNMENT AND NOT-FOR-PROFIT ENVIRONMENT (6 hours approximately) Addresses the following questions: How do governments and Not-for-Profits compare with Businesses? What is the purpose of financial reporting? Who are the users and what are the uses of Financial Reports? What are the objectives of financial reporting?
UNIT TWO: FUND ACCOUNTING (6 hours approximately) Addresses the following questions: What is a fund? What characterizes funds? How can funds be combined and consolidated? What are the main types of Governmental Funds? What is included in a Government’s Comprehensive Annual Financial Report?
UNIT THREE: BUDGETING AND CONTROL (4 hours approximately) Addresses the following questions: What are the key purposes of budgets? Why is more than one type of budget necessary? How are revenues and Expenditures classified? Why are performance budgets necessary? What are the key phases of the budget cycle?
UNIT FOUR: RECOGNIZING REVENUES IN GOVERNMENTAL FUNDS (5 hours approximately) Addresses the following questions: Why and how governments use the modified accrual basis? How should property taxes and other imposed non- exchange revenues be accounted for? How should grants, sales taxes, gifts, investments, and sales of capital assets be accounted for?
UNIT FIVE: RECOGNIZING EXPENDITURES IN GOVERNMENTAL FUNDS (5 hours approximately) Addresses the following questions: How is the Accrual concept modified for expenditures? How should wages and salaries be accounted for? How should compensated absences be accounted for? How should claims and adjustments be accounted for? How should acquisition and use of materials, supplies, capital assets, and capital leases be accounted for?
UNIT SIX: ACCOUNTING FOR CAPITAL PROJECTS (2.5 hours approximately) Addresses the following questions: How do governments account for capital projects funds? How do governments account for resources dedicated to debt service? How do governments handle special assessments? Why is arbitrage a concern of governments?
UNIT SEVEN: LONG-LIVED ASSETS AND INVESTMENTS IN MARKETABLE SECURITIES (2 hours approximately) Addresses the following questions: What accounting practices do governments follow for general capital assets? How should governments report infrastructure? How should governments account for assets that are impaired? What issues are critical as to investments in marketable securities?
UNIT EIGHT: BUSINESS TYPE ACTIVITIES (2 hours approximately) Addresses the following questions: What types of funds involve business-type activities? What are the three basic statements of proprietary fund accounting? What are internal service funds and how are they accounted for? How are proprietary funds accounted for?
VII. STUDENT LEARNING ASSESSMENT (5 HOURS):
A. Assessment tools include traditional in-class examinations, including short-answer, essay and journal entry questions, writing assignments, in-class group oral presentations, and a research project. It is strongly suggested that in addition to any other assignments, there be at least three (3) full-period examinations.
B. It is recommended that faculty create a student centered learning environment including use of teams, student presentation and the liberal use of computers. It is recommended that faculty integrate computer technology in their teaching methodology including web based assignments.
C. The Business Administration and Accounting Department endorses the college’s “Writing to Learn” initiative and strongly recommends that a writing component be included in all business and accounting courses.
VIII. SPECIAL INSTRUCTIONS: AC 11 is a prerequisite for AC 26
IX. SUPPORTING INFORMATION: A wide assortment of appropriate visual aids are available through the college library system and/or the campus departments. Contemporary periodicals including The New York Times, Wall Street Journal, business magazines, Internet sources and On-line textbooks support also serve as useful teaching and learning resources.
