Assignment Module Three ACC 360 I. You are the Auditor for Winter Valley. You have noticed that the town is recording all transactions in the General Fund. The town has not established any other funds although they have the following activities: They are constructing a new City Hall They are paying interest and principal on Winter Haven Municipal bonds The have established a $3,000,000 endowment fund to fund the maintenance of the town library into perpetuity. They have passed a gasoline tax surcharge to fund the planting of flower beds on the sides of central highway. Required: Prepare a one to two page memo explaining the following: 1. The reasons governments must establish funds. 2. The accounting method and measurement focus used by the governmental funds. 3. The purpose of the General fund 4. An explanation of the additional funds which need to be established to more accurately account for the activities of Winter Valley to assure appropriate accounting and budgetary control