CH 9 Answers PDF

Chapter 09 - Financial Reporting of State and Local Governments
CHAPTER 9:
FINANCIAL REPORTING OF STATE AND LOCAL

GOVERNMENTS
OUTLINE
Number
Topic
Type/Task
Status
(re: 15/e)
Questions:
9-1
9-2
9-3
9-4
9-5
9-6
9-7
9-8
9-9
9-10
Special districts and primary government

Letter of transmittal and MD&A information
Interim reports
Financial reporting entity
Primary government and component units
CAFR and general purpose reports
Required financial statements
Reconciliation of financial statements
Intra-entity transactions
Contemporary issues
Compare
Compare
Explain
Explain
Explain
Explain
List
Examples
Explain
Explain
New
New
Same
Same
New
9-7
9-8
9-9
New
Same
Cases:
9-1
9-2
9-3
9-4
Identification of component units

MD&A and statistical tables
Classification of fund balances
Popular reports
Analysis
Analysis
Analysis
Internet
9-1 revised
9-2 revised
New
Same
Examine
Multiple Choice
Examine
Journal entries
Matching
Matching
Calculation
Error identification
Preparation
Adjustments, JEs
9-1 revised
9-2 revised
New
Same
New
9-6 revised
Same
Same
9-9 revised
Same
Exercises/Problems:
9-1
Examine the CAFR
9-2
Various
9-3
Interim reports
9-4
Comprehensive set of transactions
9-5
Fund balance classifications
9-6
Adjusting net position balances
9-7
Change in net position
9-8
Governmental fund financial statements
9-9
Government-wide financial statements
9-10
Modified accrual to accrual accounting
9-1
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CHAPTER 9:
FINANCIAL REPORTING OF STATE AND LOCAL

GOVERNMENTAL UNITS
Answers to Questions
9-1.
According to the Bureau of Census a special district includes local entities (other than
counties, municipalities, townships, or school districts) authorized by state law to provide
only one or a limited number of designated functions, and with sufficient administrative
and fiscal autonomy to qualify as separate governments. As can be seen from this
definition a special district is a type of special purpose government.
A primary government is broader in scope than a special district. According to GASB a
primary government can be a state government, a general purpose government, or a
special purpose government. To qualify as a primary government, GASB indicates a
special purpose government needs to have a separately elected governing body, and be
legally separate and fiscally independent of state or local governments. This definition is
similar to the definition provided by the Bureau of Census for a special district.
Therefore, a special district could be considered a type of primary government.
9-2.
The letter of transmittal generally cites legal and policy requirements for the report. It
can also provide information on factors relating to government services and operations.
Since the transmittal letter is generally not a part of the audit, it can include somewhat
subjective information. On the other hand, the MD&A is considered required
supplementary information (RSI) subject to review by the auditor. As such, the MD&A
can only contain material set out by the GASB standards. Some of the information
required to be included in the MD&A is an overview of financial activity for the year,
explanation of the contents of the CAFR, and a description of the financial condition and
financial trends of the government.
9-3.
Disagree. Administrators need periodic reports in order to make day-to-day operating

and management decisions. Government council members should expect at least
monthly financial information so that they can provide oversight of the managers.
Interim reports are especially helpful in evaluating whether budgets and cash needs are
being met.
9-4.
According to the GASB a financial reporting entity is a primary government,

organizations for which the primary government is financially accountable, and other
organizations for which the nature of their relationship with the primary government are
such that exclusion would make the reporting entitys basic financial statements
misleading. Organizations making up a financial reporting entity are the primary
government and its component units. The primary government is a state or local generalpurpose government, or a special-purpose government. Component units are the entities
for which the primary government is financially accountable.
9-5.
A component unit is a legally separate entity for which the primary government is
financially accountable. The GASB also considers a component unit to be an entity
9-2
Ch. 9, Answers, 9-5 (Contd)
whose relationship with the primary government is so important that excluding it from
the financial reports of the primary government would make the primary governments
financial reports misleading. Financially accountable means that the primary government
appoints a voting majority of the component units governing board and is able to impose
its will on the component unit, or there is the potential for the component unit to provide
specific financial benefits to, or impose specific financial burdens on the primary
government.
9-6.
General purpose external financial reports include managements discussion and analysis,
basic financial statements and related notes, and required supplementary information. A
CAFR provides information beyond the minimum requirements of the general purpose
external financial statements. Included in a CAFR are all general purpose external
financial report information, an auditors report (as appropriate), a narrative section
(introductory section), combining and individual fund statements and schedules, and a
statistical section.
9-7.
The nine required statements are:

The two government-wide financial statementsstatement of net position and
statement of activities.
The two governmental fund financial statementsbalance sheet and statement of
revenues, expenditures, and changes in fund balances.
The three proprietary fund financial statementsstatement of net position; statement
of revenues, expenses, and changes in fund net position; and statement of cash flows.
The two fiduciary fund financial statementsstatement of fiduciary net position and
statement of changes in fiduciary net position.
9-8.
Chapter 9 provides a list of the items requiring reconciliation when going from the
modified accrual to accrual basis of accounting. Students should be able to provide
examples related to each of the nine items identified in Chapter 9. The use of a state or
local governments CAFR (easily located through an Internet search) will help students
provide examples.
9-9.
Intra-entity transactions are transactions between the primary government and its
component units. Both exchange and nonexchange transactions are considered intraentity transactions.
If transactions are occurring between the primary government and a component unit that
is blended, the transaction activity must be eliminated for reporting at the governmentwide level. The reason is that the blended component unit is collapsed with the primary
governments governmental activities. Eliminating the activity between the primary
government and the component unit will prevent double-counting of the activity. As an
example of the effectif the component unit is treated as a special revenue type fund for
blending purposes, the effect of all activity between the component unit and the
governmental funds would be eliminated for reporting at the government-wide level.
9-3
Ch. 9, Answers, 9-9 (Contd)
This is the same as would occur if the activity was between governmental funds, such as
between a special revenue fund and any of the other governmental fund types (General
Fund, debt service fund, capital projects fund, or permanent fund).
9-10. OCBOA stands for other comprehensive basis of accounting. These bases are nonGAAP, and for governments generally include cash, modified cash, or regulatory basis of
accounting. Governments may use OCBOA rather than GAAP if they believe the
OCBOA makes it easier for management to maintain and prepare financial reports,
makes it easier for all users to understand, or is less costly than GAAP. An audit opinion
must be modified to reflect that OCBOA rather than GAAP was used (see Chapter 11).
Solutions to Cases
9-1.
9-2.
a.
Tesser hospital is a component unit of the City of Tesser. Tesser is financially

accountable for the hospital since the mayor appoints the governing board and the
city is able to impose its will on the hospital through final approval of the budget.
b.
The Atkins Convention and Visitors Bureau is a component unit of the City of
Atkins. Since the city has the right to approve the rate of the tax (i.e., the city sets
the tax) it has the ability to impose its will on the Convention and Visitors
Bureau through its control over revenue. Because the city can impose its will on
the Convention and Visitors Bureau it is financially accountable for the bureau.
c.
The Sports Authority is not a component unit of Dawson County. As indicated,

the Sports Authority is a legally separate entity with its own board; therefore, the
only question is if there is fiscal dependency on the county. Since the actions of
the Sports Authority are voluntary and the recommendations of the county need
not be incorporated, no fiscal dependency is created.
d.
The County Aviation Authority is a component unit of the City of Middle Falls.
If the city is legally obligated to assume debt responsibilities in the event of a
default a financial burden has been imposed on the city; therefore, the Aviation
Authority would be considered a component unit. The opinion that the likelihood
of default by the Aviation Authority is remote does not affect the decision.
e.
Help for Kids is not a component unit of Alice County. Through its request the
county is performing what is referred to as a ministerial or compliance function
(GASB, Codification, Sec. 2100.116). A compliance function is not considered to
result in fiscal dependence.
a.
The two primary governmental funds revenue sources are property taxes and
intergovernmental revenues. In 2010 property taxes represent over 35 percent and
intergovernmental represents over 19 percent of governmental funds revenues.
The percent of revenues coming from property taxes is up from a low of
9-4
Ch. 9, Solutions, Case 9-2 (Contd)
29.5 percent in 2005. Conversely, the percent of revenues coming from

intergovernmental sources is down from a high of almost 26 percent in 2004.
9-3.
b.
Students will have interpreted the information provided in a variety of ways. The
following discussion provides some points students may have considered. With
the exception of 2009, property taxes have consistently increased as a percent of
revenue since 2005. A review of assessed and estimated actual property values
reveals that both values increased during 2008 and 2009 despite the housing
market failure. However, the assessed and estimated actual property values have
fallen in 2010. A review of the table indicates that the reason for the fall appears
to be related to the large increase in tax exempt property. Residential and
commercial construction was actually higher in 2010 than 2009. The increase in
property tax revenue appears to be the result of the increased millage rate. The
property tax indicators are generally strong. Weaker indicators relate to the large
increase in tax exempt properties and the increased millage rate. Another
problem is the State of Florida rollback provisions that limit the amount by
which the millage rate can be increased. Overall, it appears that property tax
revenue should continue to be a somewhat stable, provided property values do not
continue to fall, but probably not a growing source of revenue for Jacksonville
over the next two to three years.
c.
Students will have interpreted the information provided in a variety of ways. The
following discussion provides some points the students may have considered.
Sales tax revenue is the third largest source of revenues for Jacksonville. Sales tax
revenue is elastic in that it tends to move with the health of the economy. A
review of the sales tax revenue indicates that sales tax as a percent of revenue has
dropped over the past 10 years. In 2010 sales taxes provided 11.4 percent of the
revenue while in 2002 they provided 14.75 percent of the revenue. Sales tax
revenues have dropped over the last two years. The MD&A indicates that sales
tax revenues are expected to be down 3 percent in the 2010-2011 fiscal year. The
decline in sales tax revenue over the past three years reflects the weak state of the
economy and the high unemployment rate in Jacksonville and the State of Florida.
With the impact of the overall economy and the recent sales tax trend, sales tax
revenues could continue to decline or be flat over the next two to three years.
a.
Non-spendable means the assets can not be spent, either (1) because they are not
in a spendable form such as cash or financial assets that can be converted to cash,
or (2) because contractual requirements indicate the assets must remain intact.
For an advance, which is a type of receivable, to be non-spendable there must be
an indication that it is not convertible to cash in the near term due to the terms of
the agreement under which the advance was made.
9-5
b.
San Mateo reported all unassigned fund balances as part of the General Fund.
According to GASB standards, only the General Fund can report a positive
unassigned fund balance; therefore, San Mateo has correctly reported its
unassigned amounts.
c.
Since a restriction on the citys fund balance can only be imposed by an external
party (including legislative action of a higher level of government), the remaining
options for classifying the reserve would appear to be committed, assigned, or
unassigned. The information indicates that the board adopted a policy on reserves
in 1999. Of importance in making the decision about classifying the reserve is a
determination as to whether the policy was a formal action of the board that can
only be undone by a similar formal action. Additionally, for a reserve to be
reported as committed, the GASB requires that the formal action include
additional information such as the requirements for additions to the reserves and
conditions under which the amounts can be used. If such conditions are met the
reserve amounts would be classified as committed. If the policy on reserves
simply reflects the boards intent to set aside resources for times of economic
uncertainty the general reaction would be that the amounts can be classified as
assigned. However, the GASB standard specifically indicates that reserve
amounts cannot be assigned.
The answer is not apparent from the information provided. Therefore, students
could arrive at different conclusions. Those indicating the funds should be
classified as committed may point to the fact that the policy is very specific as to
its purpose and provides specific guidelines for when amounts can be used. The
degree of detail indicates actions that are greater than intent. However, there is no
indication about how amounts are added to the reserve (see comments in prior
paragraph), which negates the possibility of reporting the reserves as committed.
Students indicating the funds should be classified as assigned may point out there
is no evidence that a formal action needs to be taken to undo the policy. Here it
should be pointed out that while the students solution appears logical, the GASB
specifically prohibits reserves from being reported as assigned. Some students
may also indicate that the reserves should be unassigned since there is insufficient
information to indicate the funds should be committed. Based on the limited
information provided by San Mateo, unassigned would be appropriate.
9-4.
a.
Hillsborough County does produce a popular report in a downloadable .pdf form.

Cities and counties may be more likely to have experimented with popular
reports than smaller townships and villages.
b.
Students responses will reflect the reports they were able to obtain, so answers
will vary. The criteria for usefulness developed by GASB in Concept Statement
No. 1 or the FASB Conceptual Framework will be helpful in addressing this
9-6
question. In order to be useful, statements must be relevant, reliable,

understandable, timely, consistent, and comparable.
Solutions to Exercises and Problems
9-1.
Since each of the students will have a different annual report, the solutions to 9-1 should
differ from student to student. Note that not all reports that say CAFR on the cover
have three sections. Some reports may only contain the middle or financial section.
9-2.
9-3.
1.
2.
3.
4.
5.
d.
a.
c.
d.
d.
6.
7.
8.
9.
10.
a.
b.
b.
c.
a.
a.
For the first half of 2010 revenues generally exceeded expenditures (an exception
was February). However, the last five months of the year the trend reversed with
expenditures exceeding revenues by increasingly larger amounts each month.
The first three months of 2011 indicate larger variances than were seen in 2010.
Although no trend is yet apparent, it can be seen that once again February
expenditures exceeded revenues, indicating that February is a low point for
revenue collections.
b.
It appears Fort Collins has been able to maintain its 2009 expenditure level fairly
well in 2010. Although there are some months (February, August, October, and
December) when the 2010 expenditures exceed those in 2009, generally, the 2010
expenditures are slightly lower than 2009.
c.
There appear to be two unusual spikes in 2011 relative to 2010. Revenues for
January and February are somewhat consistent with 2010; however, the March
revenues are much higher. There is a similar pattern with expenditures. The
January and March expenditures are somewhat consistent with 2010; however,
the February expenditures are much higher. A question would be whether there is
a relationship between the revenue and expenditure spikes. For example, perhaps
one time expenditures were incurred in February for which grant revenue was
received in March. If there is no relationship, the large increases in variances are
somewhat of a concern that warrants monitoring since they indicate management
may be having difficulty aligning expenditures and revenues.
9-7
Ch. 9, Solutions (Contd)
9-4.
CITY OF LYNNWOOD
TRANS. FUND
NO.
OR ACTIVITY
1.
GF
ACCOUNT TITLE
ESTIMATED REVENUES
AMOUNTS
Debits
Credits
2,000,000
APPROPRIATIONS
1,990,000
BUDGETARY FUND BALANCE

2.
GF
TAXES RECEIVABLECURRENT
10,000
1,940,000
ESTIMATED UNCOLLECTIBLE
CURRENT TAXES
9,000
REVENUES
GA
1,931,000
1,940,000
ESTIMATED UNCOLLECTIBLE
CURRENT TAXES
9,000
GENERAL REVENUES
PROPERTY TAXES
3.
GF
OFUINTERFUND TRANSFERS OUT
1,931,000
25,000
CASH
ISF
25,000
CASH
25,000
EQUIPMENT
300,000
ACCUMULATED DEPRECIATION
65,000
TRANSFERS IN
4.
PF
260,000
INVESTMENTSMARKETABLE
SECURITIES
800,000
REVENUESCONTRIBUTIONS
FOR ENDOWMENT
800,000
9-8
Ch. 9, Solutions, 9-4 (Cont'd)
TRANS. FUND
NO.
OR ACTIVITY
ACCOUNT TITLE
AMOUNTS
Debits
Credits
CASH
40,000
REVENUESINVESTMENT EARNINGS
PF
OFUINTERFUND TRANSFERS OUT
40,000
40,000
CASH
SRF
40,000
CASH
40,000
OFSINTERFUND TRANSFERS IN
GA
40,000
INVESTMENTSMARKETABLE
SECURITIES
800,000
GENERAL REVENUES
CONTRIBUTIONS FOR ENDOWMENT
CASH
800,000
40,000
PROGRAM REVENUESPARKS AND

RECREATIONOPERATING GRANTS
& CONTRIBUTIONS
5.
EF
DUE FROM OTHER FUNDS
40,000
125,000
CHARGES FOR SERVICES

CASH
125,000
124,000

GF
EXPENDITURES
DUE TO OTHER FUNDS
124,000
125,000
125,000
9-9
TRANS. FUND
NO.
OR ACTIVITY
ACCOUNT TITLE
DUE TO OTHER FUNDS
AMOUNTS
Debits
Credits
124,000
CASH
GA
124,000
EXPENSESGENERAL GOVERNMENT
125,000
INTERNAL BALANCES
INTERNAL BALANCES
125,000
124,000
CASH
6.
ISF & GA
124,000
SUPPLIES INVENTORY
4,500
CASH
7.
GF
4,500
CASH
1,988,000
1,925,000
REVENUES
GA
CASH
63,000
1,988,000
1,925,000
PROGRAM REVENUEGENERAL
GOVERNMENTCHARGES FOR
SERVICES
8.
ISF
63,000
23,800
BILLINGS TO DEPARTMENTS
EF
EXPENSESADMINISTRATIVE
23,800
8,100
DUE TO OTHER FUNDS
9-10
8,100
TRANS. FUND
NO.
OR ACTIVITY
GF
AMOUNTS
ACCOUNT TITLE
Debits
Credits
EXPENDITURESGENERAL GOVERNMENT 15,700
DUE TO OTHER FUNDS
GA
INTERNAL BALANCES
15,700
8,100
PROGRAM REVENUEGENERAL
GOVERNMENTCHARGES FOR
SERVICES
9.
CPF
CASH
8,100
5,000,000
OFSPROCEEDS OF BONDS
ENCUMBRANCES
5,000,000
4,500,000
ENCUMBRANCES OUTSTANDING
GA
CASH
4,500,000
5,000,000
BONDS PAYABLE
10.
GF
ENCUMBRANCES
5,000,000
32,000
GA
32,000
32,000
EXPENDITURES
31,900
ENCUMBRANCES
32,000
CASH
31,900
EQUIPMENT
31,900
CASH
31,900
9-11
Ch. 9, Solutions (Cont'd)
9-5.
1.
2.
3.
4.
5.
d.
c.
a.
d.
b.
9-6.
1.
2.
3.
4.
5.
d.
e.
c.
c.
a.
9-12
9-7.
TOWN OF LEESBURG
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund BalancesGovernmental Funds to the Statement of Activities
For the Year Ended June 30, 2014
Net change in fund balances governmental funds
$ 131,700
Amounts reported for governmental activities in the statement

of activities are different because:
Governmental funds report capital outlays as expenditures.
However, in the statement of activities the cost of those assets
is allocated over their estimated useful lives as depreciation
expense. This is the amount by which capital outlays
$(1,250,000) exceeded depreciation $(595,000).
655,000
Transactions involving capital assets resulted in a loss.

The loss did not require the use of current financial
resources, and therefore was not reported in the
governmental funds.
(13,000)
Bond proceeds provide current financial resources to

governmental funds, but issuing debt increases long-term
liabilities in the statement of net position. This is the amount
of the proceeds.
(3,030,000)
A decrease in accrued liabilities indicates that expenditures

recorded in the governmental funds exceed expenses for
the current period.
24,000
Revenues in the statement of activities that do not provide

current financial resources are not reported as revenues in
the funds.
298,000
Change in net position of governmental activities
$ (1,934,300)
9-13
9-8.
Some of the modifications or corrections that should be made include:
The word Expenses should be changed to Expenditures in the

statement title.
An analysis should be done of the Other Governmental Funds column

to determine whether any of the three funds included in the column
meet the definition of a major fund. If so, the fund should be shown
in a separate column to the right of the General Fund.
A Total Governmental Funds column should be provided to the right

of the Other Governmental Funds column.
Debt proceeds is not a revenue. It should be shown in a separate

section titled Other Financing Sources (Uses). This section appears
after expenditures.
Transfers out is not an expenditure. It should be shown in a separate

section titled Other Financing Sources (Uses). This section appears
after expenditures.
Debt service should be shown separately from the General

Government function. Further, debt service should show the
expenditures for principal and the expenditures for interest.
Generally, information on debt service is shown after the functional
expenditures.
Capital outlay should be shown separately from the functions of

government. Generally, information on capital outlays is shown after
the functional expenditures.
The beginning and ending fund balances for the period should be
included after the Net Change in Fund Balances.
9-14
9-9.
TOWN OF FREAZ
STATEMENT OF NET POSITION
AS OF JUNE 30, 2014
(000S OMITTED)
ASSETS:
CURRENT ASSETS:
CASH
$ 3,639
INVESTMENTS
7,299
TAXES RECEIVABLE (NET $49 OF ESTIMATED

UNCOLLECTIBLE TAXES)
5,739
DUE FROM OTHER GOVERNMENTS
6,343
TOTAL CURRENT ASSETS
23,020
CAPITAL ASSETS:
LAND
$ 8,720
OTHER CAPITAL ASSETS (NET OF DEPRECIATION)

INFRASTRUCTURE (NET $45,603)
40,165
BUILDINGS (NET $8,021)
17,659
MACHINERY AND EQUIPMENT (NET $13,785)
14,935
TOTAL CAPITAL ASSETS
81,479
TOTAL ASSETS
104,499
LIABILITIES:
CURRENT LIABILITES:
ACCOUNTS PAYABLE
7,764
ACCRUED LIABILITIES
4,765
DUE TO OTHER FUNDS (NET)
103
CURRENT PORTION OF LONG-TERM DEBT

TOTAL CURRENT LIABILITIES
8,600
21,232
LONG-TERM LIABILITIES:
BONDS PAYABLE
28,700
TOTAL LIABILITES
49,932
9-15
NET POSITION:
NET INVESTMENT IN CAPITAL ASSETS
RESTRICTEDDEBT SERVICE
44,179
2,123
UNRESTRICTED:
DESIGNATEDSTREET REPAIR
900
UNDESIGNATED
7,365
TOTAL NET POSITION
$ 54,567
(Note: Net Investment in Capital Assets=$45,259 beginning balance $1,080

depreciation. Undesignated=$6,598 beginning balance + $587 increase in
unrestricted net position + $1,080 depreciation - $900 designated.)
9-16

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Chapter 09 - Financial Reporting of State and Local Governments

FINANCIAL REPORTING OF STATE AND LOCAL

Special districts and primary government

Identification of component units

Chapter 09 - Financial Reporting of State and Local Governments

FINANCIAL REPORTING OF STATE AND LOCAL

Disagree. Administrators need periodic reports in order to make day-to-day operating

According to the GASB a financial reporting entity is a primary government,

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Answers, 9-5 (Contd)

The nine required statements are:

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Answers, 9-9 (Contd)

Tesser hospital is a component unit of the City of Tesser. Tesser is financially

The Sports Authority is not a component unit of Dawson County. As indicated,

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Solutions, Case 9-2 (Contd)

29.5 percent in 2005. Conversely, the percent of revenues coming from

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Solutions, Case 9-3 (Contd)

Hillsborough County does produce a popular report in a downloadable .pdf form.

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Solutions, Case 9-4 (Contd)

question. In order to be useful, statements must be relevant, reliable,

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Solutions (Contd)

BUDGETARY FUND BALANCE

OFUINTERFUND TRANSFERS OUT

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Solutions, 9-4 (Cont'd)

OFUINTERFUND TRANSFERS OUT

PROGRAM REVENUESPARKS AND

DUE FROM OTHER FUNDS

CHARGES FOR SERVICES

DUE FROM OTHER FUNDS

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Solutions, 9-4 (Cont'd)

DUE FROM OTHER FUNDS

DUE TO OTHER FUNDS

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Solutions, 9-4 (Cont'd)

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Solutions (Cont'd)

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Solutions (Cont'd)

Amounts reported for governmental activities in the statement

Transactions involving capital assets resulted in a loss.

Bond proceeds provide current financial resources to

A decrease in accrued liabilities indicates that expenditures

Revenues in the statement of activities that do not provide

Change in net position of governmental activities

Chapter 09 - Financial Reporting of State and Local Governments

Ch. 9, Solutions (Cont'd)

Some of the modifications or corrections that should be made include:

The word Expenses should be changed to Expenditures in the

An analysis should be done of the Other Governmental Funds column

A Total Governmental Funds column should be provided to the right

Debt proceeds is not a revenue. It should be shown in a separate

Transfers out is not an expenditure. It should be shown in a separate

Debt service should be shown separately from the General

Capital outlay should be shown separately from the functions of

Chapter 09 - Financial Reporting of State and Local Governments