Pleasanton's CAFR

Chapter 5
1. How does the government classify its governmental expenditures, by function or by ‘‘object’’? Are the classifications approximately the same in both the government-wide and the fund statements?
The government classifies its governmental expenditures by function because when examining Pleasanton’s CAFR, it is not related to the type of goods or services obtained (which is an object), but rather nature of the activity it supports (which is a function), and both definitions of object and function are in the Government and Not-for-Profit Accounting book. These functions include General Government, Public Safety, Community Development, Operations Services, Community Activities, Capital Outlay, and Debt Service (which includes Principal and Interest). The classifications are approximately the same in the government-wide statements because they also list by function and have almost the same function names listed above in the fund statements.
2.
What are the major differences in expenditures/expenses (i.e., reconciling items) as they are reported in the governmental fund and the government-wide statements?
The major differences in expenditures/expenses is that in the governmental fund statements, the purchase of capital assets are capital outlay expenditures, while in the government wide statements, capital assets acquired go to a capital asset account and will be depreciated over its useful life and this is known as depreciation expense. Also, repaying debt principal is an expenditure in the fund statements, while under the government wide statements, it reduces long-term liabilities in the Statement of Net Position, according to the CAFR report.
3. On what basis does the government account for its inventories (purchases or consumption)? Does the City maintain a “fund balance---nonspendable” amount for