[GeauxAwayCPA]

I am going through the Governmental lessons in CPA Excel but I’m sure anyone who is or has done FAR could help me with this question!

In the proprietary funds lesson (Lesson #73 for CPAExcel Users) there is a slide(Internal service funds – slide #6) that says “Financial statement reported in supplemental section and not in Basic Financial statements. However, when I look at the excerpt provided by CPA Excel in the same lesson and look at the statement of revenues, expenses, and changes in Net position for proprietary funds there is clearly a column to the right of the “total enterprise funds” column that says “INTERNAL SERVICE FUNDS” (says governmental activities above the column heading) with all of the same information rows(operating revenues, expenses, nonoperating revenues, etc) as for the business-type activities/enterprise funds.

So does anyone know – is it or is it not included in the basic financial statements? Which is correct? Am I missing something?? or did CPAExcel just forget to update their slides/lecture video? B/c the video referred to an excerpt that was a 2012 statement, so I’m wondering if something changed….

Help, please?

[sancasuki]

What do you mean by “basic financial statements”? Are you talking about the Government wide statements or the Fund statements?

[GeauxAwayCPA]

The lecture slide I'm looking at for internal service funds only says “financial statement reported in supplemental section & not in basic Financial statement”; I assume that to them “basic financial statement” is synonymous with government wide financial statements (especially since an internal service fund uses full accrual accounting vs fund accounting).

I wish I could include a screenshot in this post but I'll try to describe it. The government wide financial statement excerpt that I'm looking at appears to contradict the information provided in the slide about the financial statement being reported in supplemental section and not in basic financial statement. The financial statement excerpt I am looking at DOES include a separate column for internal service funds in the statement of revenues, expenses and changes in net position. So I guess I am trying to figure out what is the correct fact I need to remember b/c my notes and excerpts aren't clear – are the internal service funds reported in the supplemental section or in the government wide financial statements?

Sorry if that is confusing or not clear. Government is by no-means my strong point. I am actually trying to improve it so I can pass on round 2…

[cpaMD86]

Internal service funds are reported as part of Government Activities in the Govt Wide Financial Statements. They are also presented as part of the Propietary Funds in the Fund Financials.

FAR: 9/3

[GeauxAwayCPA]

Thanks @CPAMD86!

[Author]

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