STATE AND LOCAL GOVERNMENT ACCOUNTING in Visual Studio .NET

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STATE AND LOCAL GOVERNMENT ACCOUNTING
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The recipient and secondary recipients, if applicable, have the characteristics speci ed by the
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provider For example, under a certain federal program, recipients are required to be states and secondary recipients are required to be school districts Time requirements speci ed by enabling legislation or the provider have been met, that is, the period in which the resources are required to be sold, disbursed, or consumed or in which use is rst permitted has begun, or the resources are being maintained intact, as speci ed by the provider The provider offers resources on an expenditure-driven basis and the recipient has incurred allowable costs under the applicable program The offer of resources by the provider in a voluntary nonexchange transaction is contingent on a speci ed action of the recipient, for example, to raise a speci c amount of resources from third parties or to dedicate its own resources for a speci ed purpose, and that action has occurred Providers should report liabilities or decreases in assets and expenses from governmentmandated or voluntary nonexchange transactions, and recipients should report receivables or decreases in liabilities and revenues, net of estimated uncollectible amounts, when all applicable eligibility requirements have been met (the need to complete purely routine requirements such as ling of claims for allowable costs under a reimbursement program or the ling of progress reports with the provider should not delay reporting of assets and revenues) Resources transmitted before the eligibility requirements are met should be reported as advances by the provider and as deferred revenue by recipients, except as indicated next for recipients of certain resources transmitted in advance The exception does not cover transactions in which, for administrative or practical reasons, a government receives assets in the period immediately before the period the provider speci es as the one in which sale, disbursement, or consumption of resources is required or may begin A provider in some kinds of government-mandated and voluntary nonexchange transactions transmits assets stipulating that the resources cannot be sold, disbursed, or consumed until after a speci ed number of years have passed or a speci c event has occurred, if ever The recipient may nevertheless bene t from the resources in the interim, for example, by investing or exhibiting them Examples are permanently nonexpendable additions to endowments and other trusts, term endowments, and contributions of works of art, historical treasures, and similar assets to capitalized collections The recipient should report revenue when the resources are received if all eligibility requirements have been met Resulting net assets, equity, or fund balance, should be reported as restricted as long as the provider s purpose restrictions or time requirements remain in effect If a provider in a government-mandated or voluntary nonexchange transaction does not specify time requirements, the entire award should be reported as a liability and an expense by the provider and as a receivable and revenue net of estimated uncollectible amounts by the recipients in the period in which all applicable eligibility requirements are met (applicable period) If the provider is a government, that period for both the provider and the recipients is the provider s scal year and begins on the rst day of that year, and the entire award should be reported as of that date But if the provider government has a biennial budgetary process, each year of the biennium should be treated as a separate applicable period The provider and the recipients should then allocate onehalf of the resources appropriated for the biennium to each applicable period, unless the provider speci es a different allocation Promises of assets including entities individuals voluntarily make to governments may include permanently nonexpendable additions to endowments and other trusts, term endowments, contributions of works of art and similar assets to capitalized collections, or other kinds of capital or nancial assets, with or without purpose restrictions, or time requirements Recipients of such promises should report receivables and revenue net of estimated uncollectible amounts when all eligibility requirements are met if the promise is veri able and the resources are measurable and probable of collection If the promise involves a stipulation (time requirement) that the resources cannot be sold, disbursed, or consumed until after a speci ed number of years have passed or a
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