Evaluating the nature of license fee charged by the government from the restaurants:
License fee charged by the government while the license fee collected is used for health department inspections, is a nature of the exchange transaction. Important to note, as part of the exchange transactions, the receiving entity and sacrifice something of value. Therefore, the license fee collected by the government from the restaurants has the characteristic of exchange transaction as the licensee payee gives up cash and receives value in exchange as all the fee collected is used to fund the inspections conducted by the health department. The inspections may be conducted to ensure that the restaurants are meeting the required standards of cleanliness and hygiene, and are taking good care ofwellness of their customers.
Are the capital projects and debt service funds reported upon in the government-wide statement of net assets? If so, how?
Yes, referring to the statement of net position of LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT for the year 2015, we found that capital projects and debt service funds are reported in the government wide statement of net position. Both the funds are reported as part of net position representing investment in restricted funds. Additionally, the amount allocated to both of these funds has been categorized as the one spent in governmental activities and in component units.
For instance, during 2015, the government reported investment of $31,228,065 in governmental activities of capital projects while an investment of $23,785,161 was made in the components units of the capital projects. Similarly, an amount of $2,264,092 and $164,084,846, was spent on the governmental activities and component units of the debt funds, respectively.
References
LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT. (2015). CAFR, 2015. LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT.
Michael H. Granof, S. B. (2016). Government and Not-for-Profit Accounting. John Wiley& Sons.
