[Anonymous]

Hi,

I was hoping someone could help me understand interfund transfers in governmental accounting. I just wanted to know some basics about these journal entries and where they actually end up on the statements.

In one section, the Becker book has a transfer to the capital fund from the general fund as:

Dr Cash

Cr Other financing sources

But then they have a transfer to the debt service fund from the general fund as:

Dr Cash

Cr Interfund transfer from general fund

Are these two journal entries the same thing? They both end up in other financing sources on the statement of revenues and expenditures right?

And if it’s an advance, debit cash and credit due to general fund, does that go in other financing sources, or is that a balance sheet item?

Also, under what account name do the proprietary and fiduciary funds recognize these interfund transfers in?

Thanks in advance!

[moey]

I noticed that last night too and was too lazy to find the answer, on why :X.

I would think for proprietary & fiduciary funds they would NOT have the Other Financing Sources or Interfund Transfer account because they use the Full Accrual basis of accounting & Economic Resources Measurement Focus. It would just be normal like Accounts Payable / Receivable etc.

FAR - 90
REG - 75
AUD
BEC

[Anonymous]

Yes but then for the transfers, I can't tell when you could credit other financing sources and when you would credit interfund transfers. It seems like it all goes into the same other financing sources account so it doesn't matter, but I just want to be clear on it. Hopefully someone can help me out! Thanks! I take FAR on 8/28, I see you're taking it on the 29th. Good luck!

[moey]

I'm curious if someone will share the answer too. Sorry I skipped only to the question I thought I could answer.

The header mentions General Fund or Special Revenue fund transfers, so maybe it's “Other Financing Sources” for just those two. Don't take my word for it though. I just asked my online Becker instructor. I'll get back with the answer if no one else does!

Thanks & good luck to you too :)!

FAR - 90
REG - 75
AUD
BEC

[Anonymous]

Thanks!

[moey]

“Whenever there is a transfer between any of the GRASPP funds it would not be an “Other Financing Source.”

The classification to another fund would depend upon the type of transfer; there is no one rule that covers all the transfers.

What might be helpful would be to determine if the funds are coming from a bond or a grant, they most likely would be ‘Other Financing Sources.'”

That's what I got from my teacher!

FAR - 90
REG - 75
AUD
BEC

[Author]

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