Fiscal Manager Track · Module FM2

Module FM2: What You Should Know Before Moving On

The whole module in one paragraph Every government activity sorts into governmental, business-type, or fiduciary. GASB requires two layers of statements, government-wide and fund, answering different questions about the same government. A fund is a walled-off, self-balancing set of accounts built to prove restricted money stayed restricted. Eleven possible fund types exist across the three categories, used only as needed.

Five topics, five takeaways

1. The three activity categories
Governmental, business-type, or fiduciary, sorted by who benefits and who’s financially on the hook.
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2. Government-wide vs. fund statements
Two layers, two different questions, about the same government, at the same time.
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3. What a fund actually is
A walled-off, self-balancing set of accounts, built to prove restricted resources stayed restricted.
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4. Fund categories and types
Eleven possible fund types across the three categories, five governmental, two proprietary, four fiduciary.
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5. Case: mapping a real fund list
The same three-question test from Topic 1, applied to funds you might actually see on a real report.
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Why this order Topic 1 sets up the sorting test. Topic 2 explains why two layers of statements exist at all. Topics 3 and 4 turn that into the actual fund structure. Topic 5 proves it works on a real list. Module FM3 assumes all five.

Check your understanding

Before moving to FM3, take the FM2 checkpoint quiz.

Take the FM2 checkpoint quiz →