Question: San Mateo County in California is an early adopter of

San Mateo County in California is an early adopter of the GASB standard requiring classification of fund balances. In its notes to the financial statements San Mateo provided the following information about the amounts and classifications for the San Mateo fund balances. Additionally, it provided information concerning policies that affected its classification decisions. Use the information provided by San Mateo to complete this case.

a. San Mateo lists both inventory and advances (a type of receivable) as non- spendable fund balances. Explain what characteristic(s) the advances would need to possess to be classified as non-spendable.
b. Identify where San Mateo has reported unassigned fund balances and discuss whether you agree with San Mateo’s decision and why.
c. After reading the information on reserves, how should the fund balances related to reserves be classified? Explain your classificationchoice.
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  • CreatedJanuary 11, 2014
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