The balance sheet and a comparative statement (budgetto- actual) of revenues, expenditures, and changes in fund balance of Parkville's general obligation debt service fund is presented as follows.

1. Of what significance is the deficiency of revenues over expenditures? Is it an indication of poor management?
2. The fund reported a smaller deficit than was budgeted. Is this variance a sign of good management? Explain.
3. Can you assess whether the fund will have the fiscal wherewithal to satisfy its obligations of principal and interest as they come due? Explain.
4. Included among the nonreciprocal transfers-in is a transfer of $1,498 from a related capital projects fund. What is a likely explanation for the transfer?
5. A schedule of operating transfers indicates that the transfers-in were as follows:

The major maintenance and equipment replacement fund is a capital projects funds; each of the other funds, other than the general fund, is a special revenue fund. What are the most likely reasons for the transfers from the special revenue funds?

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General Obligation Debt Service Fund Balance Sheet As of December 31, 20X1 (in thousands) Assets Equity in pooled cash and cash equivalents Cash with fiscal agent Investments, at fair value Receivables-accrued interest Due from other funds Total assets Liabilities and fund balance Liabilities Vouchers and accounts payable Fund balance Restricted for special purposes Assigned Total fund balance Total liabilities and fund balance $18 21 1,527 2 44 $1,612 $ 1 1,610 $1,611 $1,612