I have some news to share... I recently accepted a job offer with the City of Ho
ID: 2461682 • Letter: I
Question
I have some news to share... I recently accepted a job offer with the City of Hollis. I decided to transition into governmental accounting because of the fantastic retirement benefits. I was wondering if you (my oldest, dearest friend) could help me prepare for my new job? I've been studying Governmental Accounting Standards to prepare for my new job, and I've written down a variety of questions. Could you answer the below questions and help clarify my understanding of governmental accounting? Please refer to the 6/30/14 City of Hollis' fund financial statements (attached).
QUESTIONS:
1. Which of these governmental funds are major funds? Please explain why each governmental fund is categorized as a major fund.
2. Which of these governmental funds are not major funds? Please explain why each governmental fund is categorized as a non-major fund.
3. Can I include smaller governmental funds in my listing of major funds (for voluntary, supplemental purposes)? Please explain why or why not.
4. The Government-Wide Statement of Activities includes various types of depreciable assets, so why are depreciable assets excluded from my (attached) governmental fund balance sheet?
5. Why is the Governmental Fund total balance different than the Governmental Activities total Net Assets? Please explain how to reconcile the differences between the Governmental Fund total balance and the Governmental Activities total Net Assets.
Explanation / Answer
1) The General funds always considered as major fund, apart from that others funds depend upon the nature of funds if government declared as major after evaluation it is considered as major else as non major funds. Here is only Government funds are given so it is major fund. No need to variation.
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2) Internal service and Fuduciary Fund are considered as non major, Here, in this case no more funds are mentioned. So, It is considered as private funds.
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3) NO, you can't listed in major funds the smaller government funds, only General funds is major but it is so important you have to show separately mentioned while preparing financial statements.
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4) Depreciaiton may not shown in government fund but they can record in operation fund when asset have purchased record as inventory and prepaid items.
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