1. On pages A-2 and A-3, Nashville Metro identifies its use of the three basic fund types. What are the three fund types? How many individual funds are included in the governmental fund type?

2. On page A-7, Nashville Metro presents two pie charts. What do they present in each pie chart, and what explanation can you provide for the differences between the two?

3. On page A-9, Nashville Metro states, "Actual revenues and other financing sources exceeded the final budgeted amounts by $136 million." Is this a favorable or unfavorable variance? And what was the reason for the variance?

4. On page A-10, Nashville Metro states, "Actual expenditures and other financing uses were under budget by $57 million." Is this a favorable or unfavorable variance? And what was the reason for the variance?

5. The governmental funds' balance sheet appears on pages B-6 and B-7. What basis of accounting is used to prepare this statement? How would you be able to tell if you did not already know?