Building Maintenance Fund. The balance sheet and statement of revenues, expenditures. and changes in fund balance for the Building Maintenance Fund, an internal service fund of Coastal City, are reproduced here. No further information about the nature or purposes of this fund is given in the annual report.

Required
a. Assuming that the Building Maintenance Fund is an internal service fund, discuss whether the financial information is presented in accordance with GASB standards.
b. If you were the manager of a city department that uses the services of the Building Maintenance Fund, what would you want to know in addition to the information disclosed in the financialstatements?

Transcribed Image Text:

COASTAL CITY BUILDING MAINTENANCE FUND Balance Sheet As of December 31, 2011 Assets Assets: Cash and investments $152,879 Accounts receivable 2,116 779,000 Inventory Prepaid expenses 19,854 Total assets $953,849 Liabilities and Fund Equity Liabilities: $ 35,675 Accounts payable Other accrued liabilities 109,099 Accrued annual leave 227,369 Total liabilities 372,143 Fund equity: Fund balance 581,706 Total liabilities and fund equity $953,849 COASTAL CITY BUILDING MAINTENANCE FUND Statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended December 31, 2011 Revenues: Billings to departments $10,774,781 Miscellaneous 100,344 Total bilings 10,875, 125 Expenditures: Salaries and employee benefits 3,353,413 Supplies 3,409,096 Operating services and charges 495, 143 Maintenance and repairs 3,536,443 Total expenditures 10,794,095 Excess of revenues over expenditures 81,030 Fund balance January 1, 2011 500,676 Fund balance-December 31, 2011 in 581,706