Reference no: EM132925149
Question - You are the new Controller for Flowerville. You notice the Village is using the General Ledger account to account for all the City's services and activities. However, the Village has the following Activities:
-The Village administers a government employee pension fund
-The Village operates a Swimming pool that citizens are allowed to use for a fee.
-The Village holds $1,000,0000 of unclaimed property.
-The Village collects sales tax on behalf of itself and a smaller village, Field Valley.
-The Village is building a new Recreation Center.
-The Village invests idle funds on behalf of itself and Field Valley.
-The Village manages a $5,000,000, endowment fund for the permanent maintenance of the Village Green.
-The Village is paying interest and principal on a 10-year bond.
-The Village runs a Data Processing Center that services all the departments of the Village.
-The Village has instituted a new gasoline surtax. The surtax is to be used to pave Flowerville Main Highway.Write a letter to Mayor, Wren Wright, explaining why Flowerville using only one fund does not provide for adequate transparency, control, and accountability. Suggest the additional funds that the Village should establish to properly account for the ten activities listed above. For Example, say a Pension Trust Fund should be established to account for the government employee pension fund administered by Flowerville.
In your letter include a discussion of the Governmental, Proprietary, and Fiduciary Fund Categories. Explain what method of accounting and measurement focus, each fund category uses. Your letter should be professional.