The City of Madison, a General Purpose Government, Reported Fund

question 58

Essay

The City of Madison, a general purpose government, reported fund balances in the amount of $19,700,000 in the governmental funds balance sheet dated December 31, 2017. In addition, the following information is relevant:
A. General government capital assets amounted to $28,000,000. Accumulated depreciation of those capital assets amounted to $13,000,000. Enterprise fund capital assets amounted to $ 17,000,000 with accumulated depreciation of $ 8,400,000.
B. Internal service fund's net assets amounted to $2,500,000. These were reported in the proprietary funds fund basis statements but serve departments in the General Fund.
C. Property Taxes, which should be recognized as revenue in the government-wide statements, amounted to $ 200,000. The balance of deferred inflows - property taxes from the previous year was $ 170,000.
D. Liabilities, in addition to the amount reported in the governmental funds balance sheet included accrued interest payable, $300,000;
E. General long-term liabilities of the government amounted to 1) general obligation bonds of $ 6,000,000 and 2) compensated absences payable of $1,500,000. Revenue Bonds Payable in the enterprise fund totaled $ 2,000,000.
Required: Prepare a reconciliation from the fund balances recognized in the governmental funds balance sheet to the Net Position recognized in the governmental funds column of the government-wide statement of Net Position

---

Definitions:

Sound Bytes

short clips of audio, often extracted from longer pieces of content, that are memorable, impactful, and easily shared.

Phonemes

The tiniest elements of sound within a language that can differentiate one word from another.

Morphemes

The smallest grammatical units in a language that carry meaning, such as roots, prefixes, and suffixes.

Semantics

The branch of linguistics concerned with the meaning of words, phrases, sentences, and symbols in language.