The City and County of Denver allocates its governmental fund balances among the classifications specified by GASB standards (see Illustration A2-4). Go to Denver's Web site and locate its CAFR report for the most recent fiscal year (Hint: Look for the Finance Department). Using the information provided in the notes to the financial statements, identify some of the reasons provided for classifying fund balance amounts as nonspendable, restricted, committed, and assigned.

Please be sure to include your citations, references and sources.  

2. A member of the city commission insists the city's debt service fund, capital projects fund and internal service fund submit a budget for commission approval. The commissioner argues that it is only through the budget that the commissioners will be able to ensure control over these funds. Do you agree or disagree with the commissioner's argument?Let's look at direct and indirect expenses. How are these distinguished?

3. Recently, in the news, there have been some highly publicized bankruptcies involving city governments. Do you think this it is appropriate for a city government to have this option? Should the government take other measures such as raising taxes, discontinuing services, cut employees, etc. to avoid bankruptcy? Why or why not?

Please support your point of view and findings using research and scholarly sources

4. Ethics are a must in governmental accounting. Let's consider an ethical dilemma together. You are the lead accountant at your local city government. The Mayor asks you to have a private meeting. In the private meeting, the Mayor indicates he would like to provide a bonus to two of the department heads for meeting the budget expectations for a one of the Mayor's pet city projects. The Mayor asks you to not indicate in the documentation of the transaction that it was a bonus as it would likely require City Council approval. What do you do? How would you handle this ethical scenario?

Please support your point of view and findings using research and scholarly sources.