As the auditor of Clearwater County you learn that various assets are subject to spending constraints. Indicate how each of the following constraints would affect the county’s reported fund balance (i.e., in which category of fund balance it would be reported):
1. Per a bond agreement the county must maintain a cash balance equal to six months’ interest—$300,000.
2. The county council voted to set aside in a special bank account $30,000 per year to pay for the county’s centennial anniversary celebration, which will take place in ﬁve years. The current balance in the bank account is $120,000.
3. Legislation imposed by the state in which the county is located requires all counties to maintain a cash reserve equal to 5 percent of the prior year’s expenditures. The required amount for the current year is $60,000.
4. The county has goods on order of $80,000, for which it will have to make payment early in the following ﬁscal year.
5. The county maintains an inventory of supplies of $70,000.