The balance sheet and a comparative statement (budget-to-actual) of revenues, expenditures, and changes in fund balance of the City of Boulder, Colorado’s general obligation debt service fund (date changed) is presented as follows.

1. Of what significance is the deficiency of revenues over expenditures? Is it an indication of poor management?

2. The fund reported a smaller deficit than was budgeted. Is this variance a sign of good management? Explain.

3. Can you assess whether the fund will have the fiscal wherewithal to satisfy its obligations of principal and interest as they come due? Explain.

4. Included among the nonreciprocal transfers-in is a transfer of $1,498 from a related capital projects fund. What is a likely explanation for the transfer?

5. A schedule of operating transfers indicates that the transfers-in were as follows:

From the general fund …………………………………………………..............................………. $2,080

From the permanent parks and recreation fund …………………………................…….……. 25

From the transportation fund ………………………………………………….............................…… 15

From the open space fund (to account for the acquisition of greenbelt land) …... 3,944

From the major maintenance and equipment replacement fund ………........………… 228

Total …………………………………………………………………….........................................……… $6,292

The major maintenance and equipment replacement fund is a capital projects funds; each of the other funds, other than the general fund, is a special revenue fund. What are the most likely reasons for the transfers from the special revenue funds?

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General Obligation Debt Service Fund Balance Sheet as of December 31, 2015 (in thousands) Assets Equity in pooled cash and cash equivalents Cash with fiscal agent Investments, at market value $ 18 21 1,527 Receivahles-accrued interest Due from other funds 44 Total assets $1,612 Liabilities and fund balance Liabilities Vouchers and accounts payable Fund balance Restricted for special purposes Assigned Total fund balance 1,610 $1,611 $1,612 Total liabilities and fund balance General Obligation Debt Service Fund Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Year Ended December 31, 2015 (in thousands) Budget Actual Revenues Investment carnings $ 151 Expenditures Administrative services 25 22 Debt service payments Principal 2,592 2,592 4,088 S 6,702 Interest 4,088 $ 6,705 Total expenditures Excess (deficiency) of revenues over expenditures S(6,551 $6,705) Otber financing sources (uses) Nonreciprocal transfers-in Nonreciprocal transfers-our 6,292 7,790 (10 7,780 (10) 6,282 Excess (deficiency) of revenues and other sources over expendinures and other uses Fund balance, beginning of year Fund balance, end of year $ (423) 1,229 382 S 1,611