Question

Big City (a local governmental unit) performs the following functions through the collection of earned income tax and property taxes:

Salaries for a police force

Pays the fire department

Maintains the local road infrastructure

Supports the city library

The city maintains a pension trust for the police and fire department.

Through the collection of memberships and daily entrance fees, Big City maintains the city swimming pool. At the pool, it employs lifeguards, purchases chemicals, and runs a snack bar. The profit from the pool is funneled back into supporting the police and fire company.

Big City also maintains the city water and sewer, charging customers by usage each quarter.

Recently Big City floated a bond to fund the construction of a new fire company building.

Big City must determine which of its governmental funds are major funds for reporting purposes, and which of its proprietary funds are major funds for reporting purposes.

The financial information for Big City for the year ended December 31, 20X1, reflects the following:

General fund total assets	$7,450,200
Pool fund total assets	100,000
Capital projects fund total assets	3,810,000
Permanent fund total assets	30,000
Sewer and water fund total assets	6,851,000

Given the information above, for each fund below, click the indicated cell and choose "Major" or "Nonmajor" from the menu provided.

1.	General fund	Major
2.	Pool fund
3.	Capital projects fund
4.	Permanent fund
5.	Sewer and water fund

Answer 1

1. General Funds - Major

2. Pool fund - Non Major

3.Capital project fund - Major

4.Permamenent Fund - Non Major

5. Sewer & Water fund - Major

Major fund - 10% or more of the corresponding element (assets, liabilities,), excluding extraordinary items, for all funds of that type (total governmental or total enterprise), and

2) at least 5% of the corresponding element total for all governmental and enterprise funds combined.  

All other are non major fund