As a newly elected member of the Wannabe Area School Board, you are exhausted after listening to two hours of discussion on an obscure and inconsequential administrative issue. Now, at 11 PM, as part of the Business Manager's monthly report, a post-closing trial balance at the end of the first year of a two-year school construction project is circulated to update the Board. All financing authorized for the project has been recorded.
Because of your technical accounting background, you look sharply at the trial balance displayed below. While doing so, you recall that the Board just passed its largest budget ever, requiring a tax increase opposed by several citizens taxpayer groups.
WANNABE AREA SCHOOL DISTRICT Middle School Extension Capital Projects Fund Trial Balance at June 30, 2013
(in thousands)Dr (Cr)
Cash in bank.................................................... $ 1,400
Supplies..............................................................750
Interest receivable...................................................200
Temporary investments..........................................9,700
Due from general fund..........................................1,000
Accounts payable................................................ (960)
Contracts payable.............................................. (1,340)
Fund balance-nonspendable.................................. (750)
Fund balance-restricted.................................... (12,600)
Fund balance-unassigned......................................2,600
Total............................................................ $ 0
Required
a. Another Board member wants to move on to the next item of business. You object. Why?
b. Prepare an analysis designed to get the attention of your colleagues, citing specific items in the trial balance. Be sure to discuss the status of the project in relation to its budget.