ACTG 425 (UG) State & Local Government Accounting (2 cr.)
Dr. Barbara Reider
Professor of Accounting
GBB 311
barbara.reider@business.umt.edu
Off Hrs: TBA
Objective
Students will learn reporting and accounting requirements for state and local governmental entities, as required
by the Governmental Accounting Standards Board.
Course Learning Goals
Students will be able to:
1. Account for state and local governments.
2. Describe the nature of budgeting in state and local governments.
3. Explain the unique audit issues in state and local governments
4. Prepare the financial statements of state and local governments
5. Analyze the financial condition of state and local governments.
Pre/Co-Requisites
All students in this course must have at least junior standing in Business (completed the lower business core
with grades of C of better). All students must have completed or be concurrently enrolled in ACTG 306
(formerly ACCT 312). The Department of Accounting & Finance strictly enforces course pre- and corequisites.
Required materials
 Accounting for Governmental and Not-for-Profit Entities, 15th Edition, Wilson, Reck, Kattelus. Irwin
McGraw-Hill (2010).
 Access code for the City of Smithville computerized problem. If you do not purchase a new textbook at
the bookstore bundled with the access code you will have to purchase an access code for $15.
 Required calculator: The Department of Accounting and Finance approves the use of two calculators on
exams: HP 10BII and TI BAII+. Both are available at the bookstore during the first few weeks of school
at a reduced price of approximately $29.
Recommended materials
 Effective Writing: A Handbook for Accountants, 8th edition, May and May. Pearson Prentiss Hall
(2009). This book is required or recommended for all accounting majors. It should be used as a
reference for written assignments that will be made in all upper-level accounting courses.
 A state or local government’s CAFR (Comprehensive Annual Financial Report). The textbook includes
illustrations from CAFRs, but students often benefit from seeing reporting conventions for government
entities with which they are familiar. Most governments will provide a CAFR to any citizen in their
jurisdiction, though printing fees may apply. Many governments post their CAFRs on the web.
Student Assessment
Your grade will be determined using a standard 90, 80, etc. grading scale. Borderline grades (+/-) will be
determined based on homework, attendance, and participation. This class must be taken for a traditional grade.
City of Smithville Practice Set
Written and other assignments
Midterm Exam #1
Midterm Exam #2
Final Exam
Total possible
100 points
50 points
100 points
100 points
100 points
450 points
Graduate Credit
Graduate students will be required to obtain two CAFRs (Comprehensive Annual Financial Report) from two
local governments. CAFRs are typically extensive documents (100+ pages). Students will compare and analyze
the two governments’ financial practices and financial condition, write a report of findings, and present the
findings to the class. This project requires a deeper level of learning than the undergraduate students since it
focuses on applying the concepts in an analysis. This project will carry a 50 point value, making the number of
points possible for graduate students a total of 500.
Drops and Incomple Grades
The Department of Accounting & Finance follows UM policy for drops. I will not sign a drop slip after the
official last day to drop without a petition.. A mark of incomplete may be assigned to students at the discretion
of the instructor when the student has been succeeding in the course but is unable to complete the course due to
unforeseen circumstances.
Professionalism
Accounting and finance are business professions where professional behavior is expected at all times. While I
do not expect you to dress professionally, you must act professionally. Failure to meet my expectations in this
regard may impact your grade a single step (e.g., marked down from a B to a B-). Professionalism includes:
 attending class prepared for the day’s topic
 being prompt for class
 staying in the classroom for the entire class period
 submitting assignments on time
 treating all email correspondence as professional communications
 refraining from disruptive behavior during the class period
 not reading other materials (e.g., the Kaimin) during class
 leaving your cell phone turned off and put away at all times – no texting!
Exams
You are expected to take all exams when they are given in class. If you miss an exam, you must have a
documented written medical excuse, written notification of a family death, or written excused university
absence. No exceptions.
City of Smithville Practice Set
This is a continuous computerized problem. Use your access code to register at the textbook website and
download the City of Smithville files. I will provide detailed instructions and demonstrate. I will provide due
dates for submission of City of Smithville content by chapter. City of Smithville assignments are not
replacements for regular chapter homework. You must do both.
Written assignment
Each student must choose an article from the Missoulian, the Wall Street Journal, the New York Times, or a
similar media. Provide a one paragraph summary of the article and another paragraph relating the facts in the
article to something we have learned about government or nonprofit budgeting, accounting, or financial
reporting. You must have three peers review your memo and provide feedback prior to submitting your final
document. Refer to Effective Writing (May and May) and the Writing Rubric distributed in class.
Homework
You are expected to be prepared for class every day. You should read the material prior to discussion and
complete all homework on the day it is due. Assigned problems are a MINIMUM, and I strongly recommend
working additional problems and exercises if you are struggling. We may review some or all homework in class.
It is vitally important that you attempt the homework before class to identify the “sticking points” to be
addressed in class.
E-mail
It is UM policy that students and instructors only communicate using UM (or SoBA) email accounts. I will
respond to any email written in a professional manner (salutation, capitalization, etc.), within one business day.
I will return any emails that do not meet professional standards. Because of FERPA regulations and security
issues I will not discuss grades via email.
Students with disabilities
Students with disabilities may request reasonable modifications by contacting me. The University of Montana
assures equal access to instruction through collaboration between students with disabilities, instructors, and
Disability Services for Students (DSS). “Reasonable” means the University permits no fundamental alterations
of academic standards or retroactive modifications. For more information, please consult
http://www.umt.edu/disability.
Academic Integrity
Integrity and honesty are hallmarks of the accounting profession. It is your duty to abide by the University’s
academic policies, and it is the instructor’s duty to enforce those policies. The following message about
academic integrity comes from the Provost’s office: ”All students must practice academic honesty. Academic
misconduct is subject to an academic penalty by the course instructor and/or a disciplinary sanction by the
University. All students need to be familiar with the Student Conduct Code. The Code is available for review
online at http://life.umt.edu/vpsa/documents/StudentConductCode1.pdf.”
School of Business Mission Statement
The University of Montana’s School of Business Administration is a collegial learning community dedicated to
the teaching, exploration, and application of the knowledge and skills necessary to succeed in a competitive
marketplace.
Assessment and Assurance of Learning Goals
As part of our assessment process and assurance-of-learning standards, the School of Business Administration
has adopted five learning goals for all undergraduate students, and the accounting program has adopted four
additional learning goals for accounting majors.
SoBA graduates will:
1. Possess fundamental business knowledge and integrated business knowledge.
2. Be effective communicators.
3. Possess problem solving skills.
4. Have an ethical awareness.
5. Be proficient users of technological skills.
Accounting majors will:
1. Possess fundamental accounting knowledge
2. Be effective communicators
3. Critically analyze and solve problems, using technology where appropriate
4. Understand the importance of ethics to the accounting profession and demonstrate ethical decision making
This course addresses all four learning goals for accounting majors.
Semester Schedule (subject to change)
__________________________________________________________________________________________
Week 1
Ch. 1 Introduction
Ch. 2 Principles of Accounting & Financial Reporting for State & Local Gov’ts
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Week 2
Ch. 2 (cont)
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Week 3
Ch. 3 Governmental Operating Statement Accounting; Budgetary Accounting
__________________________________________________________________________________________
Week 4
Ch. 4 Accounting for Governmental Operating Activities – Illustrative Transactions and
Financial Statements
__________________________________________________________________________________________
Week 5
Midterm Exam 1
Ch. 5 Accounting for General Capital Assets and Capital Projects
__________________________________________________________________________________________
Week 6
Ch. 6 Accounting for General Long-term Liabilities and Debt Service
__________________________________________________________________________________________
Week 7
Ch. 7 Accounting for the Business-type Activities of State and Local Governments
__________________________________________________________________________________________
Week 8
Midterm Exam 2
Ch. 8 Accounting for Fiduciary Activities – Agency and Trust Funds
__________________________________________________________________________________________
Week 9
Ch. 9 Financial Reporting of State and Local Governments
__________________________________________________________________________________________
Week 10
Ch. 10 Analysis of Governmental Financial Performance
Final Exam