Fiscal Manager Track · Module FM3

Module FM3: What You Should Know Before Moving On

The whole module in one paragraph Government-wide statements use full accrual. Revenues and Expenditures come from the government’s own authority, Other Financing Sources and Uses come from elsewhere. Governmental funds keep budgetary accounts alongside operating accounts, and that budget gets formally recorded, revised, encumbered, and closed. Districts classify spending by both object and function at once.

Seven topics, seven takeaways

1. Revenues and expenses at the government-wide level
Full accrual, the economic event triggers recognition, not the cash movement.
Read the full page →

2. Revenues vs. OFS, Expenditures vs. OFU
The government’s own authority versus money that came from somewhere else entirely.
Read the full page →

3. Budgetary reporting and coexisting accounts
Budgetary accounts live alongside operating accounts in the same fund, closed separately.
Read the full page →

4. Recording and revising the budget
Adoption and amendment both trigger real journal entries, not just paperwork.
Read the full page →

5. Encumbrances
Budget reserved the moment something’s ordered, before it’s ever received or paid for.
Read the full page →

6. Closing budgetary accounts and allotments
Budgetary accounts close like operating accounts do; allotments pace out the appropriation instead of releasing it all at once.
Read the full page →

7. School system classification
The same dollar classified by object and by function at the same time.
Read the full page →

Why this order Topics 1 and 2 build the vocabulary. Topics 3 through 6 walk the budget’s full lifecycle, adopt, revise, encumber, close. Topic 7 applies all of it to what a district actually presents. Module FM4 assumes all seven.

Check your understanding

Before moving to FM4, take the FM3 checkpoint quiz.

Take the FM3 checkpoint quiz →