Problem 4: Matching transactions with funds

Indicate which fund or funds would be used by the State of Illinois to record each of the following events.

Use the codes shown below for each fund type (remember, some events affect more than one fund).

General Fund GF Pension Trust Fund PTF

Special Revenue Fund SRF Custodial Fund CF

Debt Service Fund DSF Internal Service Fund ISF

Capital Projects Fund CPF

Enterprise Fund EF

Events for the State of Illinois (you can use the abbreviations for each fund in your answers):

1. The Office of the State Lottery sells lottery tickets to the public. In accordance with State law, 5% of all lottery ticket sales revenue must be used to finance k-12 public education. The States major operating fund received a check for $15,000,000 from the Office of the State Lottery for the States share of the lottery ticket sales revenue.

2. The State collected $6,000,000 of State-enacted gasoline taxes. According to State statutes, gasoline taxes are legally restricted to pay for the maintenance of State roads and highways as well as for the maintenance of city, village, and county roads and streets. According to State law, $2,700,000 ($6,000,000 X .45) was deposited in the fund used to maintain State roads and highways, and $3,300,000 ($6,000,000 X .55) was deposited in the fund that will remit the gasoline taxes to local governments in Illinois.

3. The State paid $13,000 for the purchase of 10 iPad Pros for the Governors staff, using resources of the States major operating fund.

4. The State sold $55 million of general obligation serial bonds to finance the construction of a 25 story building located in Chicago. The building will be named the State of Illinois Center and will be located at 100 West Randolph Street. The bond proceeds were deposited in the fund responsible for building construction.

5. A payment of $12,000,000 was made to the Ace Construction Company for work completed on the construction of the State of Illinois Center.

6. The fund responsible for the payment of the general obligation serial bonds issued for the State of Illinois Center received $1,500,000 from the States major operating fund.

7. The $1,500,000 in transaction (6) was used to pay interest of $50,000 and principal of $1,450,000 on the general obligation serial bonds.

8. The State office of general services performs centralized printing services for all State agencies, and bills the State agencies at cost for each printing project. The office of general services sent a bill for $5,000 to Susana Mendoza, the State Comptroller, for printing the State's Comprehensive Annual Financial Report. The State Comptrollers office, which is part of executive branch of State government, paid the bill.

9. The State paid the regular bi-weekly payroll of $14,000,000 to (A) employees who work for the States major operating fund ($12,500,000) and to (B) employees who maintain the States roads and highways referred to in transaction (2) ($1,500,000).

10. The State Employees Retirement System {ERS} received $10,000,000 from the States major operating fund.