Issue:   Which funds qualify for major fund presentation?

Reference:
GASB Statement #34, 75-77, as amended by Statement #37, 15; GASB Statement #34 Implementation Guide, Exercise #5, pp. 232-233.

• Fund statements should present the financial information of each major fund in a separate column. Non-major funds should be aggregated and presented in a single column. Major fund reporting does not apply to internal service funds.

• The General Fund should always be reported as a major fund.

• The criteria for determining other major funds is:

  • Total assets, liabilities, revenues, or expenditures/expenditures for that fund are at least    10% of the corresponding element (assets, liabilities, and so forth) for all funds of that category or type, and
  • The same element that met the 10% criterion above is at least 5% of the corresponding element for all governmental and enterprise funds combined.

· Any other fund that is important to financial statement users may be reported as a major fund.

Evaluation:

An initial analysis has been done to determine funds that qualify for major fund reporting using data from the year ending September 30, 2001 (see attached). This analysis will need to be repeated every year.

Position:

The General Fund is always a major fund. No other governmental funds meet the criteria for major fund presentation. All the other governmental funds will be aggregated in the non-major funds column. Combining and individual fund statements will be shown as supplementary information in the CAFR.

Of the enterprise funds, the Transit Agency, Aviation, Water and Sewer and Public Health Trust meet the criteria. It is not known at this time if the new Stormwater Utility Fund will be a major fund. Of the remaining enterprise funds, Solid Waste and Seaport will be presented as major funds. The other enterprise funds: Rickenbacker Causeway, Vizcaya and Housing Agency will be presented as non-major funds.