Question

On the following questions, indicate which fund or funds would typically be used to record each of the following transactions/events for the City of Morgantown.

please use the codes shown below.

Capital Project Fund (CPF)

Custodial Fund (CF)

Debt Service Fund (DSF)

Enterprise Fund (EF)

General Fund (GF)

Internal Service Fund (ISF)

Investment Trust Fund (ITF)

Pension Trust Fund (PTF)

Permanent Fund (PF)

Private Purpose Trust Fund (PPTF)

Special Revenue Fund (SRF)

(Hint: The transactions below may involve one, two or three funds; also, each fund type is used at least once)

a. The city sold $55 million of bonds to finance a new road construction program. The bond indenture requires that the City set up a fund to accumulate resources to pay bond principal and interest when due. In addition, the Public Employees Retirement System paid out benefits to retired City employees.

b. The city police department purchased 3 sedans at a cost of $80,000. using day-to-day operating funds. The sedans have a five-year life.

c. Bob Andersen gave $1,000,000 to the City of Morgantown with the stipulation that the principal be held in perpetuity and the earnings be used to purchase new books, DVDs, CD, etc. for the Morgantown Public Library. The Morgantown Public Library is accounted for in a separate fund of the City that it is funded by a special tax legally mandated to finance the library. Investment earnings were transferred to the Morgantown Public Library Fund.

d. The City withholds state and federal income taxes from the paychecks of City employees that work in the City Hall Building. The income taxes withheld are deposited to a fund from which they are remitted to the state and federal government on a quarterly basis

e. The City’s “Department if Printing Services” serves all City departments, and bills user departments for each printing project. Pricing is designed to allow the Department of Printing Services to break-even. The Department of Printing Services sent a bill to the City Finance Director for printing the City’s Comprehensive Annual Financial Report.

f. The City deposited money received from three surrounding local governmental entities into a fund that will invest the monies received for the benefit of those governmental entities. The City returns the principal plus interest earnings to the governmental entities upon request based on the amount of interest earned and the amount of principal deposited be each governmental entity

g. The City collected property taxes. Some of the property taxes are deposited to fund that accumulates resources to pay interest and interest on General Obligation Bonds. The remainder of the property taxes collected are deposited to a fund used for normal day-to-day operating expenditures of the City.

h. The City’s wastewater treatment plant issued Revenue Bonds to finance the construction of a plant addition. The Revenue Bonds are secured solely by the revenues generated by the wastewater treatment plant.

i. John Jones gave $1,000,000 to the City stipulating that the principal be held in perpetuity and invested with the investment earnings transferred on a quarterly basis to a Nonprofit Organization that is unrelated to the City.

Answer 1

Fund is a kind of financial assistance that every Goverment organization make to fulfill the present as well as future obligations related to cash.

Fund or funds would typically be used to record each of the following transactions/events for the City of Morgantown.

a.) Capital Project Fund (CPF)

b.) General Fund (GF)

c.) Special Revenue Fund (SRF)

d.) Custodial Fund (CF)

e.) Internal Service Fund (ISF)

f.) Private Purpose Trust Fund (PPTF)

g.) Enterprise Fund (EF)

h.) Debt Service Fund (DSF)

i.) Investment Trust Fund (ITF)