Some transactions are reported
differently in funds versus government-wide statements, but other is not.
The state department of highways
engaged in the following transactions or was affected by the following events
during its fiscal year ending on December 31, 2013:
a. It signed a two-year lease for
office space for the period June 1 , 2013 through May 31, 2015. Rent was to be
$20,000 per month. Upon signing the lease, it paid one year’s rent of $240,000
in advance. It accounts for prepayments on a purchases basis.
b. In December, it settled
accident-related litigation by agreeing to pay the injured party $2.5 million.
The payment was to be made June 2014
c. In November,it announced $145
million in reimbursement grants to countries within the state. The grants are
to cover road improvements to be made in the years 2014 and 2015.
d. In December, it announced a $5
million grant to a city to install computerized traffic signals. The department
expects to make payment in January but did not specify the year in which funds
can be expended.
e. On July 1, it issued $10
million of 6%, 20 years bonds, receiving proceeds of $10,234,930. The bonds
were sold to yield of 5.8% (2.9% per semi-annual period). On December 31, it
made its first semi-annual interest payment of $300,000