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ACG 3501 Chapter 6 Cheat Sheet (DRAFT) by

General Long Term Liabilities & Debt Service

This is a draft cheat sheet. It is a work in progress and is not finished yet.

General Long Term Liabil­ities

Debt & other long-term liabil­ities that arise from activities of govern­mental funds
Issuance of bonds and notes, and capital leases
Long-term liabil­ities related to operating activities
Claims and judgem­ents, compen­sated absences, pensions, and other postem­plo­yment benefits, and obliga­tions related to landfills and pollution remedi­ation.
Pollution Remedi­ation Obliga­tions
Liabil­ities arising from clean-up of hazardous waste or hazardous substances resulting from existing pollution

Debt Service Funds

Fund that accounts for financial resources set aside for payment of principal and interest on general long term liabil­ities
Resources may come from taxes (either levied by DSF or levied by GF then transfered to DSF), special assess­ments, or other revenues
Usually only have one DSF for all tax supported debt, but if there are legal restri­ctions then there may be more

Types of Tax-Su­pported Bonds

Serial Bonds
Term Bonds
Principal matures in annual instal­lments
Principal matures in lump sum amount at the end of the bond term
Resources raised each year approx­imate debt service requir­ements
Not used as frequently as serial bonds because they usually require a sinking fund and the accounting is more complex

Accounting for Debt Service Funds


Financial Reporting