Building Maintenance Fund. The balance sheet and statement of revenues, expenditures, and changes in fund balance for the Building Maintenance Fund, an internal service fund of Coastal City, are reproduced here. No further information about the nature or purposes of this fund is given in the annual report.
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COASTAL CITY BUILDING MAINTENANCE FUND Balance Sheet As of December 31, 2011 |
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Assets |
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Assets: |
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Cash and investments |
$152,879 |
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Accounts receivable |
2,116 |
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Inventory |
779,000 |
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Prepaid expenses |
19,854 |
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Total assets |
$953,849 |
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Liabilities and Fund Equity |
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Liabilities: |
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Accounts payable |
$ 35,675 |
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Other accrued liabilities |
109,099 |
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Accrued annual leave |
227,369 |
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Total liabilities |
372,143 |
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Fund equity: |
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Fund balance |
581,706 |
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Total liabilities and fund equity |
$953,849 |
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COASTAL CITY BUILDING MAINTENANCE FUND |
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Revenues: |
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Billings to departments |
$10,774,781 |
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Miscellaneous |
100,344 |
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Total billings |
10,875,125 |
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Expenditures: |
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Salaries and employee benefits |
3,353,413 |
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Supplies |
3,409,096 |
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Operating services and charges |
495,143 |
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Maintenance and repairs |
3,536,443 |
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Total expenditures |
10,794,095 |
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Excess of revenues over expenditures |
81,030 |
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Fund balance—January 1, 2011 |
500,676 |
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Fund balance—December 31, 2011 |
$ 581,706 |
Required
a. Assuming that the Building Maintenance Fund is an internal service fund, discuss whether the financial information is presented in accordance with GASB standards.
b. If you were the manager of a city department that uses the services of the Building Maintenance Fund, what would you want to know in addition to the information disclosed in the financial statements?