Question

Construction activities for Oneida County for 2020 are as follows:

1.	A capital projects fund is established for the construction of a recreation center. The total project is estimated to cost $15,000,000, with funding to come from a $9,000,000 general obligation bond issue, a $4,000,000 federal grant, and a $2,000,000 transfer from the general fund.
2.	The general fund transfers $2,000,000 to the capital projects fund.
3.	$3,500,000 of the federal grant is received in cash.
4.	The bond issue with a par value of $9,000,000 yields $9,002,000. The premium is transferred to the debt service fund to finance payment of bond principal and interest.
5.	A contract for $14,800,000 is awarded to a contractor.
6.	Invoices for $8,000,000 are received for work performed by the contractor. The town has a 5% retainage policy and pays the contractor $7,600,000 in cash.
7.	The county's spending policy is to use restricted resources first.

The county uses the GAAP budgetary basis for end-of-year encumbrances.

What is the 2020 increase in total fund balances for the capital projects fund?

Select one:

A. $6,900,000

B. $7,400,000

C. $6,500,000

D. $7,000,000

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Construction activities for Oneida County for 2020 are as follows:

1.	A capital projects fund is established for the construction of a recreation center. The total project is estimated to cost $15,000,000, with funding to come from a $9,000,000 general obligation bond issue, a $4,000,000 federal grant, and a $2,000,000 transfer from the general fund.
2.	The general fund transfers $2,000,000 to the capital projects fund.
3.	$3,500,000 of the federal grant is received in cash.
4.	The bond issue with a par value of $9,000,000 yields $9,002,000. The premium is transferred to the debt service fund to finance payment of bond principal and interest.
5.	A contract for $14,800,000 is awarded to a contractor.
6.	Invoices for $8,000,000 are received for work performed by the contractor. The town has a 5% retainage policy and pays the contractor $7,600,000 in cash.
7.	The county's spending policy is to use restricted resources first.

The county uses the GAAP budgetary basis for end-of-year encumbrances.

What is the end-of-2020 balance in fund balance–restricted for the capital projects fund?

Select one:

A. $6,500,000

B. $5,000,000

C. $7,000,000

D. $5,400,000

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Construction activities for Oneida County for 2020 are as follows:

1.	A capital projects fund is established for the construction of a recreation center. The total project is estimated to cost $15,000,000, with funding to come from a $9,000,000 general obligation bond issue, a $4,000,000 federal grant, and a $2,000,000 transfer from the general fund.
2.	The general fund transfers $2,000,000 to the capital projects fund.
3.	$3,500,000 of the federal grant is received in cash.
4.	The bond issue with a par value of $9,000,000 yields $9,002,000. The premium is transferred to the debt service fund to finance payment of bond principal and interest.
5.	A contract for $14,800,000 is awarded to a contractor.
6.	Invoices for $8,000,000 are received for work performed by the contractor. The town has a 5% retainage policy and pays the contractor $7,600,000 in cash.
7.	The county's spending policy is to use restricted resources first.

The county uses the GAAP budgetary basis for end-of-year encumbrances.

What is the cash balance for the capital projects fund at the 2020 year-end?

Select one:

A. $7,400,000

B. $6,900,000

C. $6,902,000

D. $7,300,000

Question 16

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Construction activities for Oneida County for 2020 are as follows:

1.	A capital projects fund is established for the construction of a recreation center. The total project is estimated to cost $15,000,000, with funding to come from a $9,000,000 general obligation bond issue, a $4,000,000 federal grant, and a $2,000,000 transfer from the general fund.
2.	The general fund transfers $2,000,000 to the capital projects fund.
3.	$3,500,000 of the federal grant is received in cash.
4.	The bond issue with a par value of $9,000,000 yields $9,002,000. The premium is transferred to the debt service fund to finance payment of bond principal and interest.
5.	A contract for $14,800,000 is awarded to a contractor.
6.	Invoices for $8,000,000 are received for work performed by the contractor. The town has a 5% retainage policy and pays the contractor $7,600,000 in cash.
7.	The county's spending policy is to use restricted resources first.

The county uses the GAAP budgetary basis for end-of-year encumbrances.

What is the total for other financing sources for 2020, reported on the capital projects fund operating statement?

Select one:

A. $ 2,000,000

B. $13,000,000

C. $11,000,000

D. $ 9,000,000

Answer 1

	Capital Project Fund	Restricted Fund	Restricted Fund	Debt Service Fund
		Federal Grant -Revenue	General obligation Bond issue -OFS	General Fund -OFS
Estimation	15,000,000	4,000,000	9,000,000	2,000,000	-
general Fund Transfer	2,000,000	-	-	2,000,000	-
Grant Received	3,500,000	3,500,000	-	-	-
Bond issue at premium	9,000,000	-	9,000,000	-	2,000
Payment to Contractor	(8,000,000)	(3,500,000)	(4,500,000)	-	-
Balance	6,500,000	-	4,500,000	2,000,000	2,000

1.  What is the 2020 increase in total fund balances for the capital projects fund?

As calculation shown above Answer is Option (A) 6500,000

2. What is the end-of-2020 balance in fund balance–restricted for the capital projects fund?

Answer is Option (A) 6,500,000 being Federal Grant - 0.00 which can be used for capital projects fund plus Bond issued - 4500000 and General Fund that is transferred for metting expenses of capital projects fund -2000000 only

3. What is the cash balance for the capital projects fund at the 2020 year-end?

Answer is Option - B -69,00,000

general Fund	2,000,000
Grant Received	3,500,000
Bond issue	9,000,000
Bond issue premium (not included as not part of Capital Project Fund)	-
Payment to Contractor	(7,600,000)
Balance Cash- Capital Project Fund	6,900,000

4.  What is the total for other financing sources for 2020, reported on the capital projects fund operating statement?

Answer is Option - C- 11000000

general Fund	Other Financing Source - for Capital Project Fund	2,000,000
Grant Received	will be accounted as Revenue in Books of accounts	3,500,000
Bond issue	Other Financing Source - for Capital Project Fund	9,000,000