Question

Fund Types The transactions of the authority are accounted for in the following governmental fund types: .General fund To account for all revenues and expenditures not required to be accounted for in other funds. Capital projects fund To account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays. Such resources are derived principally from other municipal utility districts to which the Williamsburg Regional Sewage Treatment Authority provides certain services. 1. Recast the balance sheets of the two funds into a single consolidated balance sheet (statement of net position). Show separately, however, the restricted and the unrestricted portions of the consolidated net position (not each individual asset and liability). Be sure to eliminate interfund payables and receivables 2. Which presentation, the unconsolidated or the consolidated, provides more complete information? Explain. Which presentation might be seen as misleading? Why? What, if any, advantages do you see in this presentation even though it might be less complete and more misleading? Williamsburg Regional Sewage Treatment Authority Balance Sheet October 31, 2017 General Capital Projects Assets $ 751 5,021 16,398 Cash Time deposits Due on insurance claim Due from general fund Due from participants 9,499 66,475 76,725 9,000 4,414 34.833 Total assets Liabilities and fund equity $17,725 9,000 $26,725 50,000 76.725 Accounts payable Due to capital projects fund Fund balance 34,833 34,833 Total iabilies and fund equity

Answer 1

Ans: Williamsburg Regional Sewage Treatment Authority Consolidated Fund balance sheet October 31,2017

Particulars	General	Capital Fund	Combine	Eliminate	Total
Assets
Cash	$751	$5,021	$5,772		$5,772
Time deposits		$16,398	$16,398		$16,398
Due on Insurance claim	$9,499		$9,499		$9,499
Due from General Funds		$9,000	$9,000	$9,000	0
Due from Participants	$66,475	$4,414	$70,889		$70,889
Total Assets	$76,725	$34,833			$102,558
Liabilities and Equity Funds
Account Payable	$17,725		$17,725		$17,725
Due to Capital Fund Projects	$9,000		$9,000	$9,000	0
Fund Balance	$50,000	$34,833	$84,833		$84,833
Total Liabilities and Equity Funds	$76,725	$34,833			$102,558

2) The consolidated presentation provides the more complete information then the unconsolidated as the unconsolidated statement inflates the assets of Capital funds by $9,000 and Inflates the liability of general funds by $ 9,000 due to this the unconsolidated financial statement is seems to be misleading. The advantages for the Unconsolidated presentation is that it provides the information for the total fund available for each general fund and that of Capital fund.