Chapter 2, Problem 1C

(State of California—Fund Identification) The following list includes 13 funds of the state of California. Based on the description from the state’s Comprehensive Annual Financial Report, indicate which type of fund each one is.

1. 1. The Cigarette and Tobacco Tax Fund accounts for a surtax on cigarette and tobacco products that is used for various health programs.
2. 2. The Technology Services Revolving Fund accounts for charges for technology services performed for various state, federal, and local entities by the California Technology Agency.
3. 3. The Economic Recovery Bond Sinking Fund accounts for General Fund transfers, proceeds from sale of surplus property, and the 0.25% sales and use tax revenue collected for the payment of principal, interest, and other related costs of the Economic Recovery Bonds.
4. 4. The Electric Power Fund accounts for the acquisition and resale of electric power to retail end-use customers.
5. 5. The Higher Education Construction Fund accounts for bond proceeds used to construct facilities for state colleges and universities.
6. 6. The Environmental and Natural Resources Fund accounts for fees, bond proceeds, and other revenues that are restricted for maintaining the state’s natural resources and improving the environmental quality of its land, air, and water.
7. 7. The Hospital Construction Fund accounts for bond proceeds that are used to construct hospitals.
8. 8. The Prison Industries Fund accounts for charges for goods produced by inmates in state prisons that are sold to state departments and other governmental entities.
9. 9. The Receipting and Disbursing Fund accounts for the collection and disbursement of revenues and receipts on behalf of local governments. This fund also accounts for receipts from numerous state funds, typically for the purpose of writing a single warrant when the warrant is funded by multiple funding sources.
10. 10. The Service Revolving Fund accounts for charges for printing and procurement services rendered by the Department of General Services for state departments and other public entities.
11. 11. The State Lottery Fund accounts for the sale of California State Lottery tickets and the Lottery’s payments for education.
12. 12. The State Teachers’ Retirement Fund accounts for the employee, employer, and primary government contributions of the cost-sharing multiple-employer retirement plan that provides pension benefits to teachers and certain other employees of the California public school system.
13. 13. The Water Resources Fund accounts for charges to local water districts and the sale of excess power to public utilities. (Based on a recent Comprehensive Annual Financial Report of the State of California.)