Question

Classifying Fund Balances

The State of Michigan’s fund balances for its general fund at September 30, 2016, total $2,678.6 million. The state’s highest level of decision-making authority is its State Legislature. The following information is available at year-end (amounts in millions):

1. Inventory and prepaid expenses total $7.8.

2. The State Legislature requires that $200 be used for health and human resources and $114.3 for transportation.

3. Grantors require that $158.6 be used for conservation and recreation, $122.2 be used for labor, and commerce, $78.3 for health and human services, and $108.4 be used for public safety, education, and general government purposes.

4. The State has plans for various projects and intends to use $75.5 for public safety, $28.0 for health and human services, $14.5 for conservation and recreation, and $33.6 for education, transportation, labor and commerce, and general government purposes.

5. The State Legislature requires that $74.3 be used for conservation and recreation, $71.6 for public safety, $55.3 for labor and commerce, and $862.9 for education and general government purposes.

Required

Prepare the State of Michigan’s fund balances section of the general fund balance sheet, as it would appear in its fiscal 2016 CAFR.

Show all dollar amounts in millions, using decimal places (do not round).

(in millions)
Fund balances:
Nonspendable	$Answer Mark 0.00 out of 1.00
Restricted	Answer Mark 0.00 out of 1.00
Committed	Answer Mark 0.00 out of 1.00
Assigned	Answer Mark 0.00 out of 1.00
Unassigned	Answer Mark 0.00 out of 1.00
Total fund balances	$Answer

Answer 1

Fund Balances:	(in million)
Non-Spendable:
Inventory and Prepaid Expenses	$ 7.8
Restricted:
Conversation and recreation	158.6
Labor and Commerce	122.2
Health and Human Services	78.3
Public Safety, Education and general Government Purposes	108.4
Total Restricted	467.5
Committed:
Health and Human Resources	200
Transportation	114.3
Conversation and recreation	74.3
Public Safety	71.6
Labor and Commerce	55.3
Education and General Government Purposes	862.9
Total Committed	1378.4
Assigned:
Public Safety	75.5
Health and Human Services	28
Conversation and Recreation	14.5
Education, Transportation , Labor and Commerce and General Government Purposes	33.6

Total Assigned .	151.6
Unassigned :	673.3
Total General Fund	2678.6