The transactions of the authority are accounted for in the following governmental fund types:
â€¢ General fundâ€”To account for all revenues and expenditures not required to be accounted for in other funds.
â€¢ Capital projects fundâ€”To account for financial resources designated to constructor acquire capital facilities and improvements. Such resources are derived principally from other municipal utility districts to which the Williamsburg Regional Sewage Treatment Authority provides certain services.
1. Recast the balance sheets of the two funds into a single consolidated balance sheet. Show separately, however, the restricted and the unrestricted portions of the consolidated fund balance account (not each individual asset and liability). Be sure to eliminate inter-fund payables and receivables.
2. Which presentation (the unconsolidated or the consolidated) provides more complete information? Explain. Which presentation might be seen as misleading? Why? What advantages, if any, do you see to the presentation that is less complete and more misleading?