Forest City has recently implemented GAAP reporting and is attempting to determine which of the following special revenue funds should be classified as major funds

Forest City has recently implemented GAAP reporting and is attempting to determine which of the following special revenue funds should be classified as €œmajor funds€ and therefore be reported in separate columns on the balance sheet and statement of revenues, expenditures, and changes in fund balances for the governmental funds. As the city€™s external auditor, you have been asked to provide a rationale for either including or excluding each of the following funds as a major fund. Prepare a short report to the city manager that gives your recommendation and explanation. Selected information is providedbelow.

FOREST CITY As of (for the year ended) JUNE 30, 2014 Housing and Urban Forest City Fund All Governmental Gas Tax All Revenue Development ibrary Governmental and Enterprise Fund Grant Fund Funds Funds Total assets Total liabilities Total revenues Total expenditures $160,748 $175,111 101,549 $1,563,867 867,533 ,537,399 1,496,223 72,551 138,336 124,225 85,433 169,964 130,583 $3,497,398 1,487,225 2,987,487 2,684,531 120,589 119,812