Question

GAoregndshand, nerefore be reports tor the govemmentalftnase Asing Forest City has recently implemented GAAP reporting and is attempting to determine which of the following special revenue funds should be classified as major funds" and, therefore, be reported in separate columns on the balance sheet and statement of revenues, expenditures, and changes in fund balances for the governmental funds. As the city's external aud tor, you have been asked to prowide a rationale for elther including or excluding each of the following funds as a major fund. Detemine which of the following funds should be reported as a major fund. (Round percentage answers to 1 decimal place.) As of fiscal year-end %of All % of Gas TaxGovern- Govern-Housing and % of Govern-Forest | % of Govern- mental All Revenue mental Urban Govern- mental CityGovern- mental mental and Library mental Funds Enterprise Funds Funds Enterprise Grant Fund Funds Enterprise Fund Funds Enterprise Total assets160,748 160,7481 156,386.7% 72551| 86,753.3% 138,336 124,225 10.3%)$ 175,111 85,433 69,964 130,583 %| $ 1,563,867| S 3,497,398 867,533 1,487,225 1,537,3992,987,487 %| 1,496,223| 2,684,531 101,549 8.41% Total Total Include as a % | 120,589 %) 119,812 fund?

Answer 1

Forest City
As of (for the year ended) June 30,2014
	Gas Tax   Revenue Fund	>10% of Govern-mental Funds	>5% of Govern-mental and Enterprise Funds	Housing & Urban Devolp. Grant Fund	>10% of Govern-mental Funds	>5% of Govern-mental and Enterprise Funds	Library Fund	>10% of Govern-mental Funds	>5% of Govern-mental and Enterprise Funds	All Governmental	Governmental & Enterprise
Total Assets	1,60,748	10.3%	4.6%	1,75,111	11.2%	5.0%	1,01,549	6.5%	2.9%	15,63,867	34,97,398
Total Liabilities	72,551	8.4%	4.9%	85,433	9.8%	5.7%	0	0.0%	0.0%	867533	14,87,225
Total Revenues	1,38,336	9.0%	4.6%	1,69,964	11.1%	5.7%	1,20,589	7.8%	4.0%	15,37,399	29,87,487
Total expenditures	1,24,225	8.3%	4.6%	1,30,583	8.7%	4.9%	1,19,812	8.0%	4.5%	14,96,223	26,84,531
Included as Major Fund				Assets and Revenue
The Housing and Urban Development Grant must be reported as a major fund only ,neither the Gas Tax Revenue Fund nor the Forest City Library Fund meets the GASB threshold for major fund reporting.Both total assets and total revenues of the Housing and Urban Development Grant meet the governmental funds and combined governmental funds and enterprise fund criteria.