North Carolina at Chapel Hill issued commercial paper for the financing for the construction.The outstanding commercial paper contains a provision that in an event of default, the commercial paper may become immediately due and payable if the University fails to pay anyoutstanding obligations. North Carolina State University has available commercial paper
program financing for short-term credit up to $100 million to finance capital construction projects. 22. What debt service funds did the government report (hint: also look in the schedules following the notes)? Are any of these funds reported as major funds, and how can you tell?North Carolina reported pooled debt funds of 771,138. This type includes one fund the PIM fund in Fixed Income. The fund is actively managed bond fund that seeks an excess return over the Bloomberg Barclays US aggregate Bond Index. The fund invests in multiple things such of fixed income securities including corporate obligation, structed products and U.S treasuries. 23. What long-term debt is being reported in the government-wide financial statements and notes?Outstanding (bonds, special indebtedness, and notes from direct borrowings) of $7.05 billion, an increase of 12.75% from the previous fiscal year-end. They have increased from $3.48 billion in 2002 to $5.47 billion in 2019, in part due to large issuances of non-GO debt (specialindebtedness) for higher education capital projects.24. Did the government entity increase or decrease its long-term debt borrowings during the year, and what was the total effect on total long-term liabilities at year end?The state had long term debt of 7.05 billion which is an increase of 12.75% from last year. The total was 15,974,849 which was a 3.41% increase.25. What is the total long-term debt obligation for both governmental and business-type activities, and do these amounts reconcile with the amounts report on the government-wide Statement of Net Position?The total is 7,053.947 for both the governmental and business type activities. No, the statement of net position has much greater debt. 26. Were any of the government's enterprise funds profitable during the year? Was there an operating profit or were additional resources required (nonoperating revenues)
included? What does the government do with the earnings (i.e.retain, spend, transfer to the general fund, etc.)?Yes, they were and required nonoperating revenues like noncapital grants, noncapital gifts, investment earnings, interest and fee. For example, EPA revolving loan fund reported net position of 1.82 billion an increase of 5.31 from last year. Operating income was 1042 millionand net nonoperating revenues of 70.09 million consisted of primarily of federal capitalizationgrants. Unemployment compensation fund nonoperating revenues increased 17.33% which happened because of quarterly interest earned on the balance in the Trust fund.27. Does the government have revenue bonds or pledged revenues associated with business-type activities? Please explain.