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Governmental Fund Statements
•Characteristics of governmental fund statements:
–Current financial resources measurement
–Modified accrual basis of accounting
–Reconciliation required between fund and government-wide statements
•No capital assets or long term obligations
•Permanent funds
Still reported on a modified accrual basis.

Reconciliation of net assets of governmental funds to net assets presented in the government wide statements is required on the fact of this statements.

Fund balance should be either reserved or unreserved.

Extraordinary and special items is a new categorization added to the statement of revenues, expenditures, and changes in fund balances.

Budgetary statement is not part of general purpose financial statements but is required supplementary information.