If the fund is an internal service fund, the building maintenance statement of finance is not maintained according to the GASB due to the following reasons;
The equipment and building are not reported as assets in the balance sheet
There is no depreciation charge on the building or equipment as per revenues, expenses, and changes statement
Delegate your assignment to our experts and they will do the rest.
The financial report of the Coastal City did not take into account the capital leases
The net income should be shown instead of directly reporting the bad debt
The title of the financial statement should have been “ the statement of net assets.”
The Coastal City uses ‘fund balance’ instead of ‘ net investment in assets’
The following information should be added to the balance sheet and statement of finance
The full cost of the building maintenance funds. This is important as it will help the manager to establish the amount required and to know how to allocate funds to different departments
Current liabilities should also be included in the statement of finance. This will help the manager to know the customer claim and the accumulated leave.
It is also important for the manager to that the inventory does not include any excess supply of materials
In conclusion, the building maintenance fund current statement does not satisfy the requirements of the Governmental Accounting Standards Board, GASB. Also, the manager requires additional information on the total cost, inventory, and current liabilities to understand the performance of building maintenance fund.
