The balance sheet and a comparative statement (budgettoactual) of revenues, expenditures, and changes in fund balance of

Question:

The and a comparative statement (budget€to€actual) of revenues, expenditures, and changes in fund balance of Parkville's general obligation debt service fund (date changed) is presented as follows.
General Obligation Debt Service Fund as of
December 31, 2018 (in thousands)
Assets
Equity in pooled cash and cash equivalents..........................$ 18
Cash with fiscal agent......................................................21
Investments, at market value...........................................1,527
Receivables-accrued interest.............................................2
Due from other funds......................................................44
Total assets.............................................................$1,612
Liabilities and fund balance
Liabilities
Vouchers and $.......................................................1
Fund balance
Restricted for special purposes.............................................1
Assigned..................................................................1,610
Total fund balance.....................................................$1,611
Total liabilities and fund balance....................................$1,612

The balance sheet and a comparative statement (budget€to€actual) of revenues,

1. Of what significance is the deficiency of revenues over expenditures? Is it an indication of poor management?
2. The fund reported a smaller deficit than was budgeted. Is this variance a sign of good management? Explain.
3. Can you assess whether the fund will have the fiscal wherewithal to satisfy its obligations of principal and interest as they come due? Explain.
4. Included among the nonreciprocal transfers€in is a transfer of $1,498 from a related capital projects fund. What is a likely explanation for the transfer?
5. A schedule of operating transfers indicates that the transfers€in were as follows:
From the general fund.....................................................................$2,080
From the permanent parks and recreation fund.............................................25
From the transportation fund..................................................................15
From the open space fund (to account for the acquisition of greenbelt land).......3,944
From the major maintenance and equipment replacement fund........................228
Total..........................................................................................$6,292
The major maintenance and equipment replacement fund is a capital projects funds; each of the other funds, other than the general fund, is a special revenue fund. What are the most likely reasons for the transfers from the special revenue funds?

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