At June 30,20X9,total assets for the various funds of a local municipality were as follows:

Applying GASB 34 criteria,which of the above are major funds for reporting purposes?

Question

At June 30,20X9,total assets for the various funds of a local municipality were as follows:

Applying GASB 34 criteria,which of the above are major funds for reporting purposes?

Quizplus · Accepted Answer

According to GASB 34 criteria, a fund is considered a major fund if it meets any of the following criteria:

1. Total assets, liabilities, revenues, or expenditures/expenses of the individual fund are at least 10% of the corresponding total for all governmental and enterprise funds combined.
2. Total assets, liabilities, revenues, or expenditures/expenses of the individual fund are at least 5% of the corresponding total for all governmental and enterprise funds combined AND the same element of the individual fund is at least 10% of the corresponding element in all governmental and enterprise funds combined.

Using these criteria, we can determine that the General Fund (GF), Capital Projects Fund (CPF), and Enterprise Fund (EF) are major funds for reporting purposes. The Internal Service Fund (ISF) does not meet either of the above criteria, so it is not a major fund. Therefore, the best choice is A.

At June 30,20X9,total Assets for the Various Funds of a Local