2-22.,) Major Funds. (L.O2-4) At the end of the fiscal year, Palm City was tryin

ID: 2328699 • Letter: 2

Question

2-22.,) Major Funds. (L.O2-4) At the end of the fiscal year, Palm City was trying to determine which of its funds woul accordance with GASB standards. Palm City has provided the information for Il of its governmental and enterprise funds that is needed to determine major fund classification in accordance with GASB standards. Identify for the city which of its funds should be classified as major and explain how you deter- mined that the fund would be considered major under GASB standards. PALM CITY As of fiscal year-end Total Assets Total Liabilities Total Expenditures/ Expenses Total Revenues Fund Name Governmental Funds General Fund Health & Human Services Fund Community Development Fund Debt Service Fund Enterprise Funds Utility City Airport Golf Course s 4622 110.7 220.5 70.8 528 11.9 20.9 $915.9 118.8 28.4 132.4 $992.8 16.6 134.7 639.4 5,419.5 48.9 97.5 5,017.3 8.6 104.1 616.7 19.6 115.9 661.6 18.1

Explanation / Answer

Particulars

Amount ($)

Total assets (462.20+110.70+220.5+70.8+639.4+5419.5+48.9)

6,972.00

Total liabilities (52.8+11.9+20.9+6.1+97.5+5017.3+8.6)

5,215.10

Total expenditures (915.9+118.8+28.4+132.4+104.1+616.7+19.6)

1,935.90

Total revenues (992.8+125.1+16.6+134.7+115.9+661.6+18.1)

2,064.80

% of total assets

% total liabilities

% total expenditures

% total revenues

General fund

6.63

1.01

47.31

48.08

Health and human resource fund

1.59

0.23

6.14

6.06

Community development fund

3.16

0.40

1.47

0.80

Debt service fund

1.02

0.12

6.84

6.52

Utility fund

9.17

1.87

5.38

5.61

City airport

77.73

96.21

31.86

32.04

Golf course

0.70

0.16

1.01

0.88

The major funds are those that have at-least 10% of at-least one of the following:

Taking into consideration the above criterions the following funds are major funds:

Hence, general fund and city airport funds are the only two funds that are major funds for the city.