Exam 12: State and Local Governments: External Financial Reporting

A state's governmental funds balance sheet at fiscal year-end reports total liabilities of $20 billion. The state's government-wide statement of net position at fiscal year-end reports total liabilities of governmental activities of $200 billion. What is likely to be the major reason for the large discrepancy between these two numbers?

Here is information for a county government: Governmental funds Enterprise funds Total assets and deferred outflows \ 30,000,000 \ 5,000,000 Total liabilities and deferred inflows 22,000,000 2,000,000 Total revenues 200,000,000 60,000,000 Total expenditures/expenses 195,000,000 58,500,000 The county has two enterprise funds, the landfill and parking funds, and two internal service funds, the central printing and the central motor pool funds, as follows: Landfill fund Parking fund Total assets and deferred outflows \ 1,500,000 \ 3,500,000 Total liabilities and deferred inflows 1,100,000 900,000 Total revenues 12,000,000 48,000,000 Total expenses 11,900,000 46,600,000 Required Which of these enterprise funds will be shown separately, as major funds, in the proprietary funds financial statements?

Listed bellow are the required balance sheets and statements of net position for a state government: Required On which balance sheet(s) would each of the following accounts appear? Identify the financial statement(s) by number. The account may appear on one or more or none of the financial statements. If the account is not reported on any of the above financial statements, your answer is N/A. -Fund statement: statement of net position-proprietary funds

Listed bellow the required operating statements for a county government: Required On which statement(s) would each of the following accounts appear? Identify the financial statement(s) by number. The account may appear on one statement or more than one statement, or none of the operating statements. If the account is not reported on any of the above statements, your answer is N/A. -Fund statement: Statement of changes in fiduciary net position

A city's governmental funds balance sheet reports total assets of $71 million. The government-wide statement of net position for the same date reports total assets of governmental activities of $350 million. What is the most likely reason for the discrepancy between these two numbers?

Use the following information to answer Questions bellow: $\text { Here is information for a county government: }$ Governmental funds Enterprise funds Total assets and deferred outflows \ 45,000,000 \ 40,000,000 Total liabilities and deferred inflows 44,000,000 38,000,000 Total revenues 250,000,000 290,000,000 Total expenditures/expenses 242,000,000 260,000,000 $\text { The county has four special revenue funds, with the following characteristics: }$ Beach preservation Health education Community protection Emergency call service Total assets and deferred outflows \ 2,000,000 \ 4,000,000 \ 4,800,000 \ 1,900,000 Total liabilities and deferred inflows 1,000,000 3,500,000 1,800,000 1,100,000 Total revenues 20,000,000 30,000,000 30,000,000 26,000,000 Total expenditures 15,000,000 26,000,000 25,000,000 24,000,000 -Which of these special revenue funds meet the first criterion for reporting as major funds in the governmental funds financial statements?

Increases in a government's pension liability that are due to changes in economic or demographic assumptions or actual results that are different from expected results, are reported in

Listed bellow the required operating statements for a county government: Required On which statement(s) would each of the following accounts appear? Identify the financial statement(s) by number. The account may appear on one statement or more than one statement, or none of the operating statements. If the account is not reported on any of the above statements, your answer is N/A. -Fund statement: Statement of revenues, expenditures, and changes in fund balances-governmental funds

On July 1, 2020, Lake County issued $50,000,000 in variable rate debt, with interest paid on June 30 of each year, the county's fiscal year-end. The variable rate is adjusted at the beginning of each year. The variable rate for fiscal 2021 was 3.6%. On the same date, the county entered a receive variable/pay fixed interest rate swap, where the county pays a 3.45% fixed rate to a counterparty. The swap qualifies for hedge accounting. By the end of fiscal 2021, the variable rate has declined to 3.4% and the swap has declined in value by $100,000. By the end of fiscal 2022, the variable rate has fallen to 3.38%, the swap declines in value by $75,000, and the county discontinues use of hedge accounting for the swap. Required Make the journal entries necessary to record the above events on Lake County's government-wide financial statements for fiscal 2021 and fiscal 2022.

Listed bellow the required operating statements for a county government: Required On which statement(s) would each of the following accounts appear? Identify the financial statement(s) by number. The account may appear on one statement or more than one statement, or none of the operating statements. If the account is not reported on any of the above statements, your answer is N/A. -Government-wide statement: Statement of activities

For questions bellow, use the numbers from the following financial statements required in a county government's CAFR to identify where the account is reported: 1) Government-wide statement: Statement of net position 2) Government-wide statement: Statement of activities 3) Fund statement: Balance sheet-Governmental funds 4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds 5) Fund statement: Statement of net position-Proprietary funds 6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds -On which financial statement(s) are capital assets of internal service funds reported?

Here are some of the financial statements required in the CAFR for the City of White Plains, NY: Required For each of the following accounts related to the financial performance of the City of White Plains, indicate, by number, on which of the above financial statements the item is reported. The account may be reported on one statement, more than one statement, or none of the statements. If the item is not reported on any of the above statements, your answer is N/A. -Government-wide statement: Statement of net position

For questions bellow, use the numbers from the following financial statements required in a county government's CAFR to identify where the account is reported: 1) Government-wide statement: Statement of net position 2) Government-wide statement: Statement of activities 3) Fund statement: Balance sheet-Governmental funds 4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds 5) Fund statement: Statement of net position-Proprietary funds 6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds -On which financial statement(s) are capital assets of permanent funds reported?

Here are the government-wide financial statements and the funds statements for governmental and proprietary funds, for the State of California: Required For each of the following account titles reported in the financial statements of the State of California, indicate on which of the above six financial statements the item is reported. The account balance may be reported on one statement, more than one statement, or none of the statements. Indicate the number(s) of the statement(s) next to each item. If the item is not reported on any of the above statements, write N/A next to the item. -Government-wide statement of net position

Use the following information to answer Questions bellow: At the beginning of fiscal 2020, the county government signs a 2-year lease, with $50,000 paid at signing, and $50,000 due at the end of fiscal 2020. The lease has an implicit interest rate of 3%, the present value of the lease payments is $98,544, and the leased equipment has an estimated life equal to the life of the lease, no residual value. -The lease is reported in an enterprise fund. What asset is reported for this lease in the proprietary funds statement of net position at the end of fiscal 2020?

Dawson County has a general fund, several special revenue funds, and a water utility reported in an enterprise fund. Below is information for the year ended June 30, 2020 (in thousands): Property tax revenues \ 60,000 Occupancy tax revenues 5,000 Unrestricted investment income 800 General government expenses 15,000 Public safety expenses 35,000 Education expenses 25,000 Transportation expenses 1,000 General government charges for services 2,000 Public safety charges for services 7,000 Education grants received 600 Water utility expenses 14,000 Water utility charges for services 16,000 Net position-governmental activities, beginning 10,000 Net position-business-type activities, beginning 20,000 Required Prepare a fiscal 2020 government-wide statement of activities for Dawson County, in good form.

The general fund reports activities related to county buildings and equipment. Following is information concerning these capital assets, for the year ended June 30, 2021. $\begin{array} { | l | c | c | c | c | } \hline & \begin{array} { c } \text { Beginning } \\\text { balance }\end{array} & \text { Increases } & \text { Decrea ses } & \begin{array} { c } \text { Ending } \\\text { balance }\end{array} \\\hline \text { Capital asset s, original cost } & \$ 10,000,000 & \$ 850,000 & \$ (200,000 )& \$ 10,650,000 \\\hline \text { Accumulated depreciation } & ( 2,100,000 ) &( 640,000 ) & 120,000 & ( 2,620,000 ) \\\hline \text { Capital asset s, net } & \$ 7,900,000 & \$ 210,000 & \$(80,000 )& \$ 8,030,000 \\\hline\end{array}$ Capital assets were acquired for cash, and $240,000 in cash was received from the sale of capital assets during 2021. Required Calculate the following amounts: a. Government-wide statement of activities for the year ended June 30, 2021 General government expense Gain or loss on sale of capital assets b. Government-wide statement of net position at June 30, 2021 Capital assets, at cost Accumulated depreciation Capital assets, net c. Governmental funds statement of revenues, expenditures, and changes in fund balances, year ended June 30, 2021 Expenditures Other financing sources

For questions bellow, use the numbers from the following financial statements required in a county government's CAFR to identify where the account is reported: 1) Government-wide statement: Statement of net position 2) Government-wide statement: Statement of activities 3) Fund statement: Balance sheet-Governmental funds 4) Fund statement: Statement of revenues, expenditures and changes in fund balances-Governmental funds 5) Fund statement: Statement of net position-Proprietary funds 6) Fund statement: Statement of revenues, expenses and changes in net position-Proprietary funds -On which financial statement(s) are deferred outflows for bond refunding by governmental funds reported?

Use the following information to answer bellow Questions. A county reports its defined benefit pensions for employees of governmental and proprietary funds on the government-wide financial statements. Here is information for fiscal 2021. •The total pension liability, measured at the end of fiscal 2021, is $100,000,000, while the total pension liability, measured at the end of fiscal 2020, is $85,000,000. •The net increase in deferred outflows related to pensions was $2,000,000, while deferred outflows released to pension expense were $300,000. •The net increase in deferred inflows related to pensions was $150,000, while deferred inflows released to pension expense were $20,000. •The county transferred $5,000,000 in cash to the pension trust fund. -The $20,000 in deferred inflows released during the year

A county reports total expenses of governmental activities of $200 million, but total governmental fund expenditures of $90 million. Which item below would help explain why expenses of governmental activities are higher than governmental fund expenditures?