Introduction to fund accounting

By Joan W Norvelle

Book Overview

No Synopsis Available.

• Format: Unknown Binding
• Language: English
• ISBN: 0962364509
• ISBN13: 9780962364501
• Release Date: January 1989
• Publisher: Thoth Books
• Length: 162 Pages
• Weight: 0.65 lbs.

Customer Reviews

A great introduction!

This text provides exactly what the title says, an introduction to found accounting. It builds upon an earlier version by this title by Edward Lynn and the current author. The latest version of the text is published by Resource Information Associates (RIE)of Eaton Rapids, MI. This book has only 7 chapters, so it is a great component to a public budgeting, fund accounting, or public financial management course. The first two chapters lay out the principles of fund accounting, and will be of interest to people who already know accounting (and are wondering why we use learn a new type of accounting for governments and non-profits). Chapter 3 begins with an easy introduction that a complete novice to accounting should be able to follow. Chapters 4 and 5 add additional concepts until the reader is doing most of the entries one will make in the general fund. There are good examples of accounting entries (debits and credits in the journal and ledger accounts) to guide the new accountant to proficiency. Chapter 6 introduces subsidiary ledgers, which students find is the hardest chapter in the book. Chapter 7 covers year-end financial reports, and shows how the data for these reports comes form the closing entries the student has already learned to do. At the end of each chapter, about four exercises allow the professor to rotate assignments from year to year (one exercise is plenty for a week's worth of home work). The appendicies include check figures, sample questions from previous CPA exams, and an example of a comprehensive annual financial report (CAFR). Fund accounting is different than the financial accounting used by for-profit firms. This book concentrates on the general fund, which uses fund accounting, and is an excellent introduction. Other texts, which are not so introductory and require some sccounting background, get into other funds, such as fiduciary funds, enterprise finds, etc Essentials of Accounting for Governmental and Not-for-Profit Organizations. Joan Norvelle's book is a great first exposure to fund accounting. Paul Trogen Ph.D.

A Good Introductory Text

I use this textbook in teaching my governmental accounting course at our local community college, and I am also a CPA practicing in local government. This textbook provides a good introduction to basic fund accounting concepts, specifically local governmental accounting. It is short (only seven chapters), which is great for a semester-long course, since it allows plenty of time for covering the material in-depth. The first four chapters move fairly slowly, introducing the concepts of not-for-profit organizations and fund accounting. They also provide a thorough review of basic accounting concepts, although for some students, the material is almost too simplistic. The last three chapters are the heart and soul of the course, dealing with budgetary transactions, property tax transactions, encumbrance accounting, interfund transactions, revenue and expenditure detail and preparation of basic financial statements. The material deals solely with transactions in a general fund, so there is no exposure to the types of transactions which are peculiar to other fund types. As a practicing governmental accountant, this sometimes seems less than adequate to me, but I have to remind myself that this is an introductory course and textbook, and its purpose is to give students a glimpse into the world of governmental accounting. The author knows her material well; she studied at the University of Arizona with one of the pioneers in fund accounting, Edward S. Lynn. Indeed, portions of her textbook are modeled on his text, Fund Accounting: Theory and Practice. The only drawback I find in this textbook is it lacks somewhat in providing real-world applications of the material. Many of the methods discussed in the text are not used in practice anymore, largely because of advances in recent technology. However, that is where my practical experience comes in, as I provide those real-world applications to supplement the material in the book throughout the course. All in all, a very good introductory text.