It is in compliance with the earnest requests of colleagues and friends that I
have embarked on the task of editing a handbook of governmental accounting.
Practitioners in the private sector, public administrators, and students in colleges
and universities will find this handbook a useful reference. We hope our readers
from a diverse range of fields will use it to gain understanding and familiarity with
government accounting concepts.
When I first began discussing the concept of a book on governmental accounting
for nonaccountants, the publisher, John Wiley & Sons, Inc., asked a
good question: “Who would be interested in a book on governmental accounting
who is not an accountant?” The quick answers were obvious—bond underwriters
and investors, lawyers, elected officials, financial and other managers working in
government, labor unions, and so forth.
Over the last decade, I co - founded two U.S. investment partnerships as
chief investment ofﬁ cer (CIO), undertaking direct responsibility for
delivery of superior returns to partners. Investment partnerships that mainly
trade in securities are loosely called hedge funds, or simply funds, irrespec-
tive of whether they actually hedge to reduce risks. While venture capital
funds, such as venture funds in Silicon Valley, are basically U.S. investment
partnerships, they are considered a distinct breed from hedge funds. ...
Mutual funds charge two kinds of fees: expenses and loads. Expenses comprise the management
fee (typically a fixed percentage of assets under management) and other recurring operating
costs—such as custodian, administration, accounting, registration, and transfer agent fees.
Rather than charging explicit fees for these expenses, funds deduct them on a daily basis from
the fund's net assets. Expenses are expressed as a percentage of assets under management (the
expense ratio). Loads are one-time fees used to compensate distributors.
The second difference has to do with the tax treatment of capital gains. In
the United Kingdom, the system is simple: Investors only pay capital gains tax
when they sell their shares in a fund. In the United States, however, investors
face an additional form of capital gains tax. U.S. mutual funds must distribute
net capital gains realized by the fund, and when they do so, their investors
are liable for tax on these distributions.
» Clear communication facilitates effective risk management. Establishing clear and open
lines of communication among interested parties across an organization helps ensure
that certain risks do not fall through the cracks and that data and information flowing
between business units (including, where relevant, external service providers such as the
custodian, fund accountant, and transfer agent) are understood by all to mean the same
» Organizational structures and policies themselves can serve as risk controls.
Instruments used to predict future mutual fund returns include the aggregate dividend
yield, the default spread, the term spread, and the yield on the three-month T-bill, variables
identiﬁed by Keim and Stambaugh (1986) and Fama and French (1989) as important in
predicting U.S. equity returns. The dividend yield is the total cash dividends on the value-
weighted CRSP index over the previous 12 months divided by the current level of the
index. The default spread is the yield differential between Moodys BAA-rated and AAA-
These accounts measure the capacity or potential
of ecosystems to deliver ecosystem services in a
sustainable way. Typical indicators are Landscape
Ecosystem Potential (LEP), Green Accessible
Landscape Infrastructure (GALI) and Rivers
Ecosystem Potential (REP).
In itself, the international workshop was also the first step in integrating the international and
regional networks of social funds by bringing together families of programs that started with
different sector priorities and approaches, such as the AGETIPs in Western Africa and the social
investment funds in Latin America, and by stimulating the creation of social funds networks in
Eastern Africa, Eastern Europe and Central Asia, and Northern Africa and the Middle East.
The Portfolio Improvement Program (PIP) was launched by the World
Bank about a year ago to improve the performance of its project portfo-
lio. Within that review, the performance of social funds was evaluated
for such things as efficiency, targeting, and sustainability.
As the largest multilateral development finance agency, the World Bank
lends about US$20 billion annually for development all over the world.
Its portfolio of 1,500 projects under implementation accounts for close
to US$120 billion of commitment on the part of the World Bank.
· Net benefit vs. user cost method of calculating depletion. These are two different
methods for estimating the depletion of natural capital. The net benefit method is much
simpler than the user cost method, and therefore has been used widely. It is considered
technically incorrect by economists; however, those who use it feel that despite its
inaccuracy it offers an acceptable proxy value for depletion.
· Inclusion of "maintenance costs." Maintenance costs are the expenditures that a country
would have to make in order for its use of the environment to be sustainable.
In this chapter you will learn: Explain the key components of the balance of payments, explain the growth in international trade activity over time, explain how international trade flows are influenced by economic factors and other factors, explain how international capital flows are influenced by country characteristics, introduce the agencies that facilitate the international flow of funds.
The innovative nature of social funds, their contributions to poverty reduction, their wide-
spread recognition as well as controversy surrounding them in developing countries and within
the development community, all called for a global exchange of experiences and lessons learned.
The Economic Development Institute (EDI) of the World Bank, after facilitating some regional
exchanges among social funds’ managers in Latin America and Africa, identified the need for a
global learning event in 1995 and initiated the preparation of the workshop in early 1996....
Increasing numbers of children are participating in after-school programs, and with more federal and state funding the number of such programs is likely to grow. This growth has been occurring, however, with little guidance as to what program features or practices might be most helpful in nurturing the educational
Chapter 7 - Fraud, internal control, and cash. Learning objectives of this chapter include: Define fraud and internal control, identify the principles of internal control activities, explain the applications of internal control principles to cash receipts, explain the applications of internal control principles to cash disbursements, describe the operation of a petty cash fund,...
This version includes amendments resulting from IFRSs issued up to 31 December 2008. IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds was developed by the International Financial Reporting Interpretations Committee and issued by the International Accounting Standards Board in December 2004.
This version includes amendments resulting from IFRSs issued up to 31 December 2008. IFRIC 14 IAS 19 - The limit on a defined benefit asset, minimum funding requirements and their interaction was developed by the International Financial Reporting Interpretations Committee and issued by the International Accounting Standards Board in July 2007.
After reading this chapter, you will be able to answer the following questions: What are the components of a check? What are the differences among the various types of checks? How and where are deposits accepted? When may a bank charge a customer’s account? What are the different types of electronic fund transfers?
Part II of this book focuses on financial markets, markets in which funds are trans-
ferred from people who have an excess of available funds to people who have a short-
age. Financial markets such as bond and stock markets are crucial to promoting
greater economic efficiency by channeling funds from people who do not have a pro-
ductive use for them to those who do. Indeed, well-functioning financial markets are
a key factor in producing high economic growth, and poorly performing financial
markets are one reason that many countries in the world remain desperately poor.
If you want to learn how to be a super-trader, then closely examine the
concepts in this book. It is based on a proactive trading program that
has helped my firm, SAC Capital Management, LLC, grow from a $20-
million hedge fund to one handling over $500 million annually after
only five years.
I have been trading the stock market for twenty years. Originally, I
made my trading decisions by watching the ebbs and flows of the ticker
tape. I knew very little of the fundamentals of the companies I was trad-
ing and based my decisions on the tape action. Later, as I refined my
art, I began...