A school district prepares its budget on a cash basis. It is contemplating the changes or actions that follow. For each, indicate the impact that the change would have (1) on year-ending June 30, 2017 general fund expenditures or transfers and (2) on year ending June 30, 2017, government -wide expenses (e.g., increase expenditures by $x or no impact). Provide a brief explanation of your response, indicating that you are aware of the relevant financial reporting issue. 7. The district is required to transfer 50 percent of any annual surplus from the general fund to a rainy day fund ( a special revenue fund). Usually the transfer based on the surplus of the fiscal previous year is made in December. The district proposes to delay the transfer that would ordinarily be made in December 2017 until July 2018, thereby decreasing its cash outlay for fiscal year 2017 by $3million.

to indicate the impact the change would have (1) on year ending June 30, 2017, general fund expenditures or tarnsfers and (2) on year ending June 30, 2017 government-wide expenses (e.g., increase expenditures by $ or no impact). Provvide a brief explanation of your response.