Chapter 06 – Proprietary Funds
6-1
CHAPTER 6 Proprietary Funds
6-1. THE SOLUTION TO THIS AND THE FIRST EXERCISE OF CHAPTERS 1 THROUGH 9 WILL
6-2. GOVERNMENT DEPARTMENTS PURCHASING GOODS AND SERVICES FROM AN INTERNAL
SERVICE FUND RECORD EXPENDITURES EQUAL TO THE REVENUES (NOT THE EXPENSES)
6-3. UNLIKE INTERNAL SERVICE FUNDS, IT IS FREQUENTLY DESIRABLE FOR ENTERPRISE
FUNDS TO OPERATE AT A PROFIT (INCREASE IN NET POSITION). LIKE COMMERCIAL
Chapter 06 – Proprietary Funds
6-4 (A)
VILLAGE OF SEASIDE PINES
ENTERPRISE FUND
GENERAL JOURNAL
DEBITS
CREDITS
OPERATING REVENUES –
CHARGES FOR SALES AND SERVICES
TRANSFERS IN
NONOPERATING REVENUES– INTEREST
OPERATING EXPENSES:
COSTS OF SALES AND SERVICES
DEPRECIATION
ADMINISTRATIVE AND SELLING
NONOPERATING EXPENSES-INTEREST
NET POSITION
550,000
100,000
28,000
492,000
45,000
25,000
17,000
99,000
6-4 (B).
VILLAGE OF SEASIDE PINES
ENTERPRISE FUND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2015
OPERATING REVENUES:
CHARGES FOR SALES AND SERVICES
$ 550,000
OPERATING EXPENSES:
COSTS OF SALES AND SERVICES
ADMINISTRATIVE AND SELLING
DEPRECIATION
TOTAL OPERATING EXPENSES
$ 492,000
25,000
45,000
562,000
OPERATING INCOME (LOSS)
(12,000)
NONOPERATING REVENUES (EXPENSES):
INTEREST REVENUE
INTEREST EXPENSE
28,000
(17,000)
INCOME (LOSS) BEFORE TRANSFERS
(1,000)
TRANSFER IN FROM GENERAL FUND
INCREASE IN NET POSITION
100,000
99,000
NET POSITION, JULY 1, 2014
NET POSITION, JUNE 30, 2015
Chapter 06 – Proprietary Funds
6-4 (C).
NET INVESTMENT
IN CAPITAL
ASSETS
RESTRICTED
NET
POSITION
UNRESTRICTED
NET POSITION
TOTAL
CAPITAL ASSETS
700,000
700,000
LESS ACCUMULATED DEPRECIATION
(45,000)
(45,000)
LESS REVENUE BOND PAYABLE
(625,000)
(565,000)
RESTRICTED
-0-
-0-
UNRESTRICTED (PLUG)
69,000
69,000
TOTAL NET POSITION
$30,000
-0-
69,000
99,000
VILLAGE OF SEASIDE PINES
ENTERPRISE FUND
STATEMENT OF NET POSITION
JUNE 30, 2015
NET POSITION:
NET INVESTMENT IN CAPITAL ASSETS
UNRESTRICTED
TOTAL NET POSITION
30,000
69,000
$ 99,000
6-5
VILLAGE OF SEASIDE PINES
ENTERPRISE FUND
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2015
OPERATING INCOME (LOSS)
$ (1,000)
ADJUSTMENTS:
DEPRECIATION EXPENSE
INCREASE IN RECEIVABLES FROM OTHER FUNDS
INCREASE IN ACCOUNTS RECEIVABLE (NET)
INCREASE IN SUPPLIES
INCREASE IN ACCOUNTS PAYABLE
$ 45,000
(40,000)
(35,000)
(18,000)
115,000
67,000
NET CASH PROVIDED BY OPERATING ACTIVITIES
$ 66,000
6-6 (A).
Chapter 06 – Proprietary Funds
TOWN OF WESTON
WATER UTILITY FUND
GENERAL JOURNAL
JULY 1, 2014 – JUNE 30, 2015
DEBITS
CREDITS
1.
ACCRUED EXPENSES
CASH
75,000
75,000
2.
CUSTOMER ACCOUNTS RECEIVABLE
DUE FROM OTHER FUNDS
OPERATING REVENUES–CHARGES FOR SALES AND
SERVICES
1,400,000
107,000
1,507,000
3.
MATERIALS AND SUPPLIES
OPERATING EXPENSES–COSTS OF SALES AND SERVICES
OPERATING EXPENSES–ADMINISTRATION
CONSTRUCTION WORK IN PROGRESS
ACCOUNTS PAYABLE
215,000
354,000
200,000
220,000
989,000
4.
OPERATING EXPENSES–COSTS OF SALES AND SERVICES
MATERIALS AND SUPPLIES
265,700
265,700
5.
ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS
CUSTOMER ACCOUNTS RECEIVABLE
8,000
8,000
6.
CASH
CUSTOMER ACCOUNTS RECEIVABLE
DUE FROM OTHER FUNDS
1,518,400
1,470,000
48,400
7.
ACCOUNTS PAYABLE
CASH
1,035,000
1,035,000
8.
NONOPERATING EXPENSES-INTEREST
CASH
175,000
175,000
9.
UTILITY PLANT IN SERVICE
CONSTRUCTION WORK IN PROGRESS
185,000
185,000
10.
OPERATING EXPENSES–DEPRECIATION
ACCUMULATED DEPRECIATION OF UTILITY PLANT
226,000
226,000
11.
CONSTRUCTION WORK IN PROGRESS
NONOPERATING EXPENSES-INTEREST
25,000
25,000
12.
OPERATING REVENUES
–CHARGES FOR SALES AND SERVICES
ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS
13,100
13,100
6-6 (A) (CONTINUED).
DEBITS
CREDITS
Chapter 06 – Proprietary Funds
13.
RESTRICTED ASSETS
CASH
100,000
100,000
14.
OPERATING EXPENSES–COSTS OF SALES AND SERVICES
ACCRUED EXPENSES
63,000
63,000
15.
OPERATING REVENUES–CHARGES FOR SALES AND
SERVICES
OPERATING EXPENSES
–COSTS OF SALES AND SERVICES
OPERATING EXPENSES-ADMINISTRATION
OPERATING EXPENSES-DEPRECIATION
NONOPERATING EXPENSES-INTEREST
NET POSITION
1,493,900
682,700
200,000
226,000
150,000
235,200
6-6 (B).
TOWN OF WESTON
WATER UTILITY FUND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2015
OPERATING REVENUES:
CHARGES FOR SALES AND SERVICES
OPERATING EXPENSES:
COSTS OF SALES AND SERVICES
ADMINISTRATION
DEPRECIATION
TOTAL OPERATING EXPENSES
$682,700
200,000
226,000
$1,493,900
1,108,700
OPERATING INCOME
NONOPERATING REVENUES (EXPENSES):
INTEREST ON LONG–TERM DEBT
385,200
(150,000)
CHANGE IN NET POSITION
235,200
NET POSITION – JULY 1, 2014
1,675,000
NET POSITION – JUNE 30, 2015
$1,910,200
6-6 (C). TOWN OF WESTON
WATER UTILITY FUND
STATEMENT OF NET POSITION
AS OF JUNE 30, 2015
Chapter 06 – Proprietary Funds
ASSETS:
CURRENT AND ACCRUED ASSETS:
CASH
CUSTOMER ACCOUNTS RECEIVABLE
LESS ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS
DUE FROM OTHER FUNDS
MATERIALS AND SUPPLIES
TOTAL CURRENT AND ACCRUED ASSETS
$222,000
(25,100)
$363,400
196,900
58,600
69,300
$ 688,200
OTHER PROPERTY AND INVESTMENTS:
RESTRICTED ASSETS
350,000
UTILITY PLANT:
UTILITY PLANT IN SERVICE
LESS ACCUMULATED DEPRECIATION
UTILITY PLANT-NET
CONSTRUCTION WORK IN PROGRESS
NET UTILITY PLANT
TOTAL ASSETS
7,185,000
(2,826,000)
4,359,000
160,000
4,519,000
$5,557,200
LIABILITIES:
CURRENT LIABILITIES:
ACCOUNTS PAYABLE
ACCRUED EXPENSES
TOTAL CURRENT LIABILITIES
84,000
63,000
147,000
LONG-TERM DEBT:
REVENUE BONDS PAYABLE
TOTAL LIABILITIES
3,500,000
3,647,000
NET POSITION: (1)
NET INVESTMENT IN CAPITAL ASSETS RESTRICTED
RESTRICTED
UNRESTRICTED
TOTAL NET POSITION
1,019,000
350,000
541,200
$1,910,200
(1)
Net investment in
capital assets
Restricted
Unrestricted
Total
Invested in Capital Assets net of Debt
Capital Assets (net)
4,519,000
4,519,000
Less Revenue Bond Payable
(3,500,000)
(3,500,000)
Restricted
350,000
350,000
Unrestricted (plug)
541,200
541,200
Total Net position
$ 1,019,000
350,000
541,200
1,910,200
Chapter 06 – Proprietary Funds
6-6 (D).
TOWN OF WESTON
WATER UTILITY FUND
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM CUSTOMERS
CASH PAID TO SUPPLIERS AND EMPLOYEES (1)
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
INTEREST PAID ON LONG-TERM DEBT
CONSTRUCTION OF FIXED ASSETS
NET CASH USED FOR CAPITAL AND
RELATED FINANCING ACTIVITIES
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JULY 1, 2014
CASH AND CASH EQUIVALENTS, JUNE 30, 2015 (2)
$1,518,400
( 890,000)
628,400
( 175,000)
( 220,000)
( 395,000)
233,400
480,000
$ 713,400
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
OPERATING INCOME
ADJUSTMENTS:
DEPRECIATION EXPENSE
DECREASE IN CUSTOMER ACCOUNTS
RECEIVABLE (NET)
INCREASE IN INTERFUND RECEIVABLES
DECREASE IN MATERIALS AND SUPPLIES
DECREASE IN ACCOUNTS PAYABLE
DECREASE IN ACCRUED EXPENSES
TOTAL ADJUSTMENTS
NET CASH PROVIDED BY OPERATING
ACTIVITIES
$226,000
83,100
( 58,600)
50,700
( 46,000)
( 12,000)
$385,200
243,200
$628,400
Chapter 06 – Proprietary Funds
6-7 (A).
CITY OF SANDWICH
SWIMMING POOL FUND
GENERAL JOURNAL
JANUARY 1 – DECEMBER 31, 2015
DEBITS
CREDITS
1.
CASH
TRANSFERS IN
NOTES PAYABLE
400,000
150,000
250,000
2.
CASH
DUE TO WATER UTILITY FUND
120,000
120,000
3.
LAND
IMPROVEMENTS OTHER THAN BUILDINGS
BUILDINGS
CASH
100,000
200,000
100,000
400,000
4.
CASH
OPERATING REVENUES –
CHARGES FOR SALES AND SERVICES
305,000
305,000
5.
OPERATING EXPENSES–COSTS OF SALES AND SERVICES
OPERATING EXPENSES–ADMINISTRATION
CASH
75,000
35,000
110,000
6.
SUPPLIES INVENTORY
CASH
40,000
40,000
OPERATING EXPENSES–COSTS OF SALES AND SERVICES
SUPPLIES INVENTORY
35,000
35,000
7.
OPERATING EXPENSES–ADMINISTRATION
CASH
12,000
12,000
8.
NONOPERATING EXPENSES-INTEREST
CASH
250,000 * 6% * 6/12
7,500
7,500
9.
DUE TO WATER UTILITY FUND
CASH
120,000
120,000
10.
OPERATING EXPENSES–DEPRECIATION
ACCUMULATED DEPRECIATION—IMPROVEMENTS
OTHER THAN BUILDINGS
ACCUMULATED DEPRECIATION-BUILDINGS
30,000
22,500
7,500
Chapter 06 – Proprietary Funds
6-9
6-7 (A) (CONTINUED).
DEBITS
CREDITS
11.
NONOPERATING EXPENSES-INTEREST
ACCRUED INTEREST PAYABLE
250,000 * 6% * 3/12
3,750
3,750
12.
TRANSFERS IN
OPERATING REVENUES –
CHARGES FOR SALES AND SERVICES
OPERATING EXPENSES
–COSTS OF SALES AND SERVICES
OPERATING EXPENSES–ADMINISTRATION
OPERATING EXPENSES–DEPRECIATION
NONOPERATING EXPENSES-INTEREST
NET POSITION
150,000
305,000
110,000
47,000
30,000
11,250
256,750
6-7 (B). CITY OF SANDWICH
SWIMMING POOL FUND
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET POSITION
YEAR ENDED DECEMBER 31, 2015
OPERATING REVENUES:
CHARGES FOR SALES AND SERVICES
OPERATING EXPENSES:
COSTS OF SALES AND SERVICES
ADMINISTRATION
DEPRECIATION
$110,000
47,000
30,000
$305,000
187,000
OPERATING INCOME
118,000
NONOPERATING EXPENSES:
NET POSITION – JANUARY 1, 2015
Chapter 06 – Proprietary Funds
6-7 (C).
CITY OF SANDWICH
SWIMMING POOL FUND
STATEMENT OF NET POSITION
DECEMBER 31, 2015
ASSETS:
CURRENT ASSETS:
CASH
SUPPLIES
TOTAL CURRENT ASSETS
$135,500
5,000
140,500
FIXED ASSETS:
LAND
IMPROVEMENTS OTHER THAN BUILDINGS
LESS: ACCUMULATED DEPRECIATION
BUILDINGS
LESS: ACCUMULATED DEPRECIATION
TOTAL FIXED ASSETS
$200,000
(22,500)
100,000
(7,500)
$100,000
177,500
92,500
370,000
TOTAL ASSETS
$510,500
LIABILITIES:
CURRENT LIABILITIES:
ACCRUED INTEREST PAYABLE
$3,750
LONG-TERM LIABILITIES:
NOTES PAYABLE TO BANK
TOTAL LIABILITIES
250,000
253,750
NET POSITION: (1)
NET INVESTMENT IN CAPITAL ASSETS
UNRESTRICTED
TOTAL FUND EQUITY
120,000
136,750
$256,750
(1)
Net investment in
capital assets
Restricted
Unrestricted
Total
Net investment in capital assets
Capital Assets (net)
370,000
370,000
Less Revenue Bond Payable
(250,000)
(250,000)
Restricted
0
0
Total Net position
0
Chapter 06 – Proprietary Funds
6-7 (D).
CITY OF SANDWICH
SWIMMING POOL FUND
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM CUSTOMERS
CASH PAID TO SUPPLIERS AND EMPLOYEES *
NET CASH PROVIDED BY OPERATING ACTIVITIES
$305,000
( 162,000)
143,000
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
SHORT–TERM LOAN FROM WATER UTILITY FUND
REPAYMENT OF LOAN TO WATER UTILITY FUND
NEW CASH PROVIDED BY NONCAPITAL FINANCING
ACTIVITIES
$ 120,000
(120,000)
-0–
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES:
EQUITY TRANSFER FROM GENERAL FUND
LOAN FROM BANK
ACQUISITION OF CAPITAL ASSETS
INTEREST PAID TO BANK
NET CASH USED FOR CAPITAL AND RELATED
FINANCING ACTIVITIES
150,000
250,000
(400,000)
( 7,500)
( 7,500)
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, JANUARY 1, 2015
CASH AND CASH EQUIVALENTS, DECEMBER 31, 2015
135,500
-0-
$135,500
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
OPERATING INCOME
$118,000
ADJUSTMENTS:
DEPRECIATION
INCREASE IN SUPPLIES
NET ADJUSTMENTS
$30,000
( 5,000)
25,000
NET CASH PROVIDED BY OPERATING ACTIVITIES
$143,000
*$ 110,000 (5) + $40,000 (6) + $ 12,000 (7)
Chapter 06 – Proprietary Funds
6-8. VILLAGE OF PARRY – PRINT SHOP FUND
STATEMENT OF CASH FLOWS-
YEAR ENDED APRIL 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM DEPARTMENTS
CASH PAID FOR SALARIES AND BENEFITS
CASH PAID TO SUPPLIERS
CASH PAID FOR UTILITIES
NET CASH PROVIDED BY OPERATING ACTIVITIES
$1,095,000
(485,000)
(205,000)
( 71,000)
334,000
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
PAYMENT OF BANK LOAN PRINCIPAL
TRANSFER FROM GENERAL FUND FOR WORKING CAPITAL NEEDS
NET CASH USED FOR NON–CAPITAL FINANCING ACTIVITIES
(51,000)
80,000
29,000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
TRANSFER FROM GENERAL FUND FOR EQUIPMENT PURCHASES
LOAN FROM WATER UTILITY FUND
PURCHASE OF EQUIPMENT
PAYMENT OF INTEREST
NET CASH USED FOR CAPITAL AND RELATED FINANCING
ACTIVITIES
100,000
300,000
( 500,000)
( 47,000)
( 147,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
COLLECTION OF INTEREST
PURCHASE OF INVESTMENTS
NET CASH USED FOR INVESTING ACTIVITIES
24,000
(50,000)
( 26,000)
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, MAY 1, 2014
CASH AND CASH EQUIVALENTS, APRIL 30, 2015
190,000
151,000
$341,000
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
OPERATING INCOME
$ 38,000
ADJUSTMENTS:
DEPRECIATION EXPENSE
INCREASE IN RECEIVABLES FROM OTHER FUNDS
INCREASE IN SALARIES AND BENEFITS PAYABLE
DECREASE IN ACCOUNTS PAYABLE
INCREASE IN UTILITY BILLS PAYABLE
$300,000
(10,000)
10,000
( 5,000)
1,000
296,000
NET CASH PROVIDED BY OPERATING ACTIVITIES
$334,000
NONCASH INVESTING, CAPITAL RELATED FINANCING AND NON–
CAPITAL RELATED FINANCING ACTIVITIES:
CAPITAL LEASE OF EQUIPMENT
$ 36,780
Chapter 06 – Proprietary Funds
6-13
6-9.
CITY OF WRIGHTVILLE
RISK MANAGEMENT INTERNAL SERVICE FUND
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM OTHER DEPARTMENTS
$875,000
CASH PAID FOR CLAIMS
(360,000)
CASH PAID FOR SUPPLIES AND EMPLOYEES
(120,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES
$ 395,000
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
TRANSFER IN FROM GENERAL FUND
268,000
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES
268,000
CASH FLOWS FROM CAPITAL RELATED FINANCING ACTIVITIES:
PROCEEDS FROM LONG TERM DEBT
82,000
PAYMENTS ON LONG TERM DEBT PRINCIPAL
(14,000)
PAYMENTS ON INTEREST ON LONG TERM DEBT
(15,000)
CASH PAID FOR CAPITAL ASSETS
(290,000)
CASH RECEIVED ON SALE OF CAPITAL ASSETS
42,000
NET CASH USED FOR CAPITAL RELATED FINANCING ACTIVITIES
(195,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
INVESTMENT INCOME
25,000
PURCHASE OF INVESTMENT SECURITIES
(397,000)
NET CASH PROVIDED BY INVESTING ACTIVITIES
(372,000)
NET INCREASE IN CASH
$96,000
CASH ON HAND JANUARY 1, 2015
118,000
CASH ON HAND DECEMBER 31, 2015
$214,000
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
Not required by exercise
Chapter 06 – Proprietary Funds
6-14
6-10 (A)
TOWN OF FROSTBITE
RISK MANAGEMENT FUND
GENERAL JOURNAL
2015
DEBITS
CREDITS
1
CASH
700,000
LONG TERM ADVANCE FROM ENTERPRISE FUND
300,000
TRANSFER IN
400,000
2
PREPAID INSURANCE
200,000
CASH
200,000
3
OFFICE EQUIPMENT
25,000
CASH
25,000
4
INVESTMENTS
450,000
CASH
450,000
5
DUE FROM OTHER FUNDS
630,000
OPERATING REVENUES – CHARGES FOR SERVICES
630,000
6
CASH
425,000
DUE FROM OTHER FUNDS
425,000
7
CASH
27,000
NONOPERATING REVENUE: INVESTMENT INCOME
27,000
8
OPERATING EXPENSES – PERSONNEL SERVICES
210,000
CASH
210,000
9
OPERATING EXPENSES – INSURANCE CLAIMS
165,000
CASH
165,000
10
OPERATING EXPENSES – DEPRECIATION
5,000
ACCUMULATED DEPRECIATION – OFFICE EQUIPMENT
5,000
11
OPERATING EXPENSES – CONTRACTED SERVICES
190,000
PREPAID INSURANCE
190,000
12
INVESTMENTS
6,000
NONOPERATING REVENUES —
NET INCREASE IN FMV INVESTMENTS
6,000
6-10(A) CONTINUED
DEBITS
CREDITS
Chapter 06 – Proprietary Funds
6-15
13
OPERATING EXPENSES – INSURANCE CLAIMS
90,000
ACCRUED LIABILITIES
90,000
CLOSING ENTRIES
OPERATING REVENUES – CHARGES FOR SERVICES
630,000
NONOPERATING REVENUES: INVESTMENT INCOME
27,000
NONOPERATING REVENUES —
NET INCREASE IN FMV INVESTMENTS
6,000
TRANSFERS IN
400,000
OPERATING EXPENSES – PERSONNEL SERVICES
210,000
OPERATING EXPENSES – CONTRACTED SERVICES
190,000
OPERATING EXPENSES – DEPRECIATION
5,000
OPERATING EXPENSES – INSURANCE CLAIMS
255,000
NET POSITION
403,000
6-10 (B)
TOWN OF FROSTBITE
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
RISK MANAGEMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
OPERATING REVENUES
CHARGES FOR SERVICES – INTERFUND PREMIUMS
$630,000
OPERATING EXPENSES:
PERSONNEL
SERVICES
210,000
CONTRACTUAL
SERVICES
190,000
CLAIMS
255,000
DEPRECIATION
5,000
TOTAL OPERATING EXPENSES
660,000
OPERATING INCOME (LOSS)
(30,000)
NONOPERATING REVENUES
NET INCREASE IN FMV OF INVESTMENTS
6,000
INVESTMENT INCOME
27,000
TOTAL NONOPERATING REVENUES
33,000
INCOME(LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS
3,000
TRANSFERS IN
400,000
CHANGE IN NET POSITION
403,000
NET POSITION – JANUARY 1, 2015
0
NET POSITION – DECEMBER 31, 2015
$ 403,000
Chapter 06 – Proprietary Funds
6-16
6-10 (C)
TOWN OF FROSTBITE
STATEMENT OF NET POSITION
RISK MANAGEMENT FUND
DECEMBER 31, 2015
ASSETS:
CURRENT ASSETS:
CASH
102,000
INVESTMENTS
456,000
DUE FROM OTHER FUNDS
205,000
PREPAID INSURANCE
10,000
TOTAL CURRENT ASSETS
773,000
CAPITAL ASSETS:
EQUIPMENT & MACHINERY
25,000
LESS, ACCUMULATED DEPRECIATION (5,000)
TOTAL CAPITAL ASSETS
20,000
TOTAL ASSETS
$ 793,000
LIABILITIES
CURRENT LIABILITIES
ACCRUED LIABILITIES
90,000
TOTAL CURRENT LIABILITIES
90,000
NONCURRENT LIABILITIES:
300,000
TOTAL LIABILITIES
$390,000
NET POSITION: (1)
NET INVESTMENT IN
CAPITAL ASSETS
20,000
UNRESTRICTED
383,000
TOTAL NET POSITION
$ 403,000
(1)
Net investment in
capital assets
Restricted
Unrestricted
Total
Net investment in capital assets:
Capital Assets (net)
20,000
20,000
Less capital-related debt
(0)
(0)
Restricted
0
0
Unrestricted (plug)
383,000
383,000
Total Net position
$ 20,000
0
383,000
403,000
Chapter 06 – Proprietary Funds
6-17
6-10 (D) TOWN OF FROSTBITE
STATEMENT OF CASH FLOWS
RISK MANAGEMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
CASH RECEIVED FROM INTERFUND PREMIUMS
$ 425,000
CASH PAID FOR CLAIMS
(165,000)
CASH PAID FOR CONTRACTED SERVICES
(200,000)
CASH PAID FOR PERSONNEL SERVICES
(210,000)
NET CASH PROVIDED BY OPERATING ACTIVITIES
$ (150,000)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
BORROWINGS FOR OPERATIONS: LONG–TERM ADVANCE
300,000
TRANSFER IN FROM GENERAL FUND
375,000
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES
675,000
CASH FLOWS FROM CAPITAL RELATED FINANCING ACTIVITIES:
TRANSFER IN FROM GENERAL FUND
25,000
CASH PAID FOR CAPITAL ASSETS
(25,000)
NET CASH USED FOR CAPITAL RELATED FINANCING ACTIVITIES
0
CASH FLOWS FROM INVESTING ACTIVITIES:
INVESTMENT INCOME
27,000
PURCHASE OF MARKETABLE SECURITIES
(450,000)
NET CASH PROVIDED BY INVESTING ACTIVITIES
(423,000)
NET INCREASE IN CASH
102,000
CASH ON HAND JANUARY 1, 2015
0
CASH ON HAND DECEMBER 31, 2015
$ 102,000
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
OPERATING INCOME (LOSS)
$ (30,000)
ADJUSTMENTS:
INCREASE IN DUE FROM OTHER FUNDS
(205,000)
INCREASE IN PREPAID INSURANCE
(10,000)
INCREASE IN ACCRUED LIABILITIES PAYABLE
90,000
DEPRECIATION EXPENSE
5,000
NET CASH PROVIDED BY OPERATING
ACTIVITIES
$ (150,000)
Chapter 06 – Proprietary Funds
6-10 (E) THE INTENT OF THE TOWN IS FOR THE RISK MANAGEMENT FUND TO CHARGE INDIVIDUAL
DEPARTMENTS IN AMOUNTS SUFFICIENT TO COVER CURRNT–YEAR COSTS AND ESTABLISH A
6-11 (A)
CITY OF EVANSVILLE
SUMMER CAMP ENTERPRISE FUND
GENERAL JOURNAL
FISCAL YEAR 2015
DEBITS
CREDITS
1.CASH
OPERATING REVENUES–CHARGES FOR SERVICES
130,000
130,000
1.CASH
LONG–TERM NOTE PAYABLE
45,000
45,000
1.OPERATING EXPENSES–
PAYROLL TAX EXPENSE
WAGES EXPENSE
INSURANCE EXPENSES
NON–OPERATING EXPENSE – INTEREST EXPENSE
EQUIPMENT (BUS)
CASH
13,250
66,575
6,000
1,350
70,000
157,175
2.NONOPERATING EXPENSES-INTEREST
ACCRUED INTEREST PAYABLE
($45,000 * 6% * 3/12)
675
675
3.OPERATING EXPENSES–DEPRECIATION
ACCUMULATED DEPRECIATION OF EQUIPMENT
($ 70,000 / 5 *9/12)
10,500
10,500
4.OPERATING EXPENSES–PAYROLL TAXES
PAYROLL TAXES PAYABLE
900
900
OPERATING REVENUES–CHARGES FOR SERVICES
OPERATING EXPENSES–PAYROLL TAXES
OPERATING EXPENSES – WAGES
OPERATING EXPENSES– INSURANCE
OPERATING EXPENSES–DEPRECIATION
NONOPERATING EXPENSES–INTEREST
NET POSITION
130,000
14,150
66,575
6,000
10,500
2,025
30,750