Fall 2007 issue of Horizons

knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

Capital projects funds:

• Model C distinguishes between restricted and unrestricted fund balance that is available for appropriation. Model C reports the limitations on and intended uses of resources from the perspective of governmental funds in total, rather than in the context of individual funds as in Models A and B. The ITC is a staff document designed to set forth opinions about accounting practice and seek comments at a relatively early stage of a project, before the board has reached a consensus view. This ITC is a step toward an Exposure Draft (ED) of a Statement of Governmental Accounting Standards, but it is not an ED, and it does not represent a preliminary view of the board.

• A capital projects fund may account for resources that are restricted or legally limited to the acquisition or construction of major capital facilities. • A capital projects fund may account for resources that are restricted to, legally limited to, or intended for the acquisition or construction of major capital facilities. Debt service funds: • A debt service fund may be used to account for resources that are restricted or legally limited to the payment of general long-term debt principal and interest. • A debt service fund may be used to account for resources that are restricted to, legally limited to, or intended for the payment of general long-term debt principal and interest. Classification of Fund Balances In addition to clarifying the governmental fund type definitions, the ITC provides three alternative models for reporting fund balance and its components: 1. Model A: Modification of the Current Components of Fund Balance; 2. Model B: Distinguishing Fund Balance by Availability for Appropriation; and 3. Model C: Distinguishing Fund Balance by Resource Restrictions. • Model A essentially retains the current components of fund balance – reserved, unreserved and designated. However, the ITC clarifies the definitions of these components. • Model B presents fund balance information from the perspective of individual funds, similar to Model A. However, Model B makes a distinction between resources available for appropriation and those that are not.

Questions? Contact Jeff Winter, CPA, CGFM Partner-in-Charge, Public Sector Services Group 314-290-3408 jeff.winter@rubinbrown.com

The provision is estimated to raise federal tax revenues by $7 billion over 10 years.

44 u winter 2007 issue