Analysis of revenues and revenue sources. (1) How stable and flexible are the city's revenue sources in the event of adverse economic conditions? (2) Is the revenue base well diversified, or does the city rely heavily on one or two major sources? (3) Has the city been relying on intergovernmental revenues for an excessive portion of its operating expenditures? (4) What percentage of total expenses of governmental activities is covered by program revenues? By general revenues? (5) Do any extraordinary or special items reported in the statement of activities deserve attention?

Fund Accounting The Government reports its financial position and results of operations in funds, which are considered separate accounting entities. The operations of each fund are accounted for within a set of self-balancing accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with legal, financial, and contractual provisions. GAAP, establishes criteria (percentage of the assets, liabilities, revenue, or expenditures/expenses of either fund category or the governmental and enterprise funds combined) for the determination of major funds. Indirect costs are automatically allocated and reported in the program expense for each fund. Non-major funds are combined in a single column in the fund financial statements. The Government reports the following major funds: (a) Governmental Funds The Government reports the following major governmental funds: General Fund - The general fund is the Government's primary operating fund. It accounts for al financial resources of the general government, except those required to be accounted for in another fund. . ervic The PFA debt service fund accounts for the resources accumulated, and payments made, for principal and interest on long-term general obligation debt issued by PFA on behalf of the Government. PFA Capital Proiects Fund The PFA capital projects fund accounts for bond proceeds of debt issued by the PFA on behalf of the Government. The bond proceeds have been designated for certain necessary public safety and capital development projects which are accounted for in this fund. . Federal Grants Fund The federal grants fund accounts for proceeds and payments that are restricted to expenditures for specified purposes. (b) Proprietary Funds These funds account for those activities for which the intent of management is to recover, primarily through user charges, the cost of providing goods or services to the general public. The Government reports the following major proprietary funds: . West Indian Company - wico, a blended component unit of PFA, accounts for the activities of a cruise ship pier and shopping mall complex on the island of St. Thomas. . UnemploymentInsurance Fund The unemployment insurance fund accounts for the collection of unemployment premiums from employers in the U.S. Virgin Islands, and the payment of unemployment benefits to eligible unemployed recipients