Research Case: City and County of Denver Proprietary Funds. Use the 2012 CAFR for the City and County of Denver to respond to the following questions.

a. Does the City and County of Denver report any internal service funds? If so, identify the internal service funds found in its financial statements and the primary purpose of each one.

b. Does the City and County of Denver use any enterprise funds? If so, identify the major funds found in its financial statements and the primary purpose of each one. If there are any nonmajor funds that are named, identify them.

c. The statement of net position for the Denver Airport System shows a negative net investment in capital assets. How is this possible and what are the impli- cations? Does the net investment in capital assets figure change significantly in the 2013 CAFR?

d. The Denver Airport System has both restricted assets and liabilities payable from restricted assets. Are the restricted assets sufficient to pay the liabilities?

e. What is the largest expense (operating or nonoperating) for the Denver Airport System? Is there a connection between this item and your answer to part c? If so, explain.

f. ForboththeWastewaterandDenverAirportSystem,operatingincomewas significantly lower than cash flows from operations. What is the largest adjustment in the reconciliation of operating income to operating cash flows for each fund?

g. Do any of the enterprise or internal service funds use capital or operating leases? How do you know?

h. Was the Central Services internal service fund created or disposed of during the fiscal year? Explain.

i. What type of fund is the Workers’ Compensation fund? What is the most significant reconciling item between operating income and cash flows from operations? Does it appear that the fund’s charges are appropriate compared to the expenses?