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Golf Course

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Submitted By kryn2as
Words 412
Pages 2
A.
By definition, a general fund is used to account and report all financial resources not accounted for and reported in another fund (GASB); whereas business type activities must be reported in an enterprise fund if GASB codification criteria are met.in this case, there is no evidence that the golf course is finance with debt that is secured solely by pledge of the golf course revenue or that laws require fees to cover costs and capital charges (GASB). Hence, the golf course could be accounted for either fund, subject to administrative approval. Enterprise funds are used to account for business type activities that offer goods and services to the public for a fee. When a golf course is operated in an enterprise fund, there is an expectation that the fund will be self-supporting and also retain equity for capital maintenance. If a golf course is operated within a general fund, there no requirement to produce a net income; however taxpayers who do not utilize the golf course are often unhappy subduing the facility with tax dollars. If a government does subsidize wit tax dollars, it is important to demonstrate that the golf course provides public benefit to the community perhaps by offering free golf lessons to at risk youth or undertaking a marketing campaign that highlights the beauty of the public resource.
B.
Status quo: do the citizens support subsidies for the golf course? If the country selects this option, will administrators decide to maintain an enterprise fund, which may require subsidies from general fund revenues during periods of loss, or to return operations to the general funds? Is the decline in revenue a short or long term problem? How big are ongoing losses expected to be? Can rates be raised or are there other revenue sources that could make the fund self-supporting? Concession agreements or management contracts. What happens if the services

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