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Town is recording all transactions in the general fund

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Reference no: EM131855742

I. You are the Auditor for Winter Valley. You have noticed that the town is recording all transactions in the General Fund. The town has not established any other funds although they have the following activities:

• They are constructing a new City Hall

• They have a town operated skating rink for which they charge an entrance fee

• They have $2,000,000 in an town employee pension plan

• They are paying interest and principal on Winter Haven Municipal bonds

• They have unclaimed funds of $1,000,000

• The have established a $3,000,000 endowment fund to fund the maintenance of the town library into perpetuity.

• They have a centralized payroll department that provides payroll services to all departments in Winter Valley.

• They collect sales tax on behalf of Stars hollow.

• They also invest idle funds on behalf of Stars Hollow.

• They have passed a gasoline tax surcharge to fund the planting of flower beds on the sides of central highway. Required: Prepare a one to two page memo explaining what additional funds should be established in order to assure.

Reference no: EM131855742

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