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of years The inclusion of a noncurrent asset in the general fund results in a portion of the general fund s fund balance not being readily available to nance current operations To re ect the unavailability of an advance to nance current activities, a fund balance reserve is established to segregate a portion of the fund balance from the general fund in an amount equal to the advance that is not considered currently available Establishing this reserve does not require a charge to operations; rather, it is a segregation of the fund balance in the available general fund and is established by debiting unreserved fund balance and crediting reserved fund balance The reserve is reported in the fund balance section of the balance sheet (ii) Special Revenue Funds Special revenue funds should be established to account for the proceeds of speci c revenue sources (other than expendable trusts, or major capital projects) that are legally restricted to expenditure for speci ed purposes and for which a separate fund is legally required Examples are parks, schools, and museums, as well as particular functions or activities, such as highway construction or street maintenance A special revenue fund may have a de nite limited life, or it may remain in effect until discontinued or revoked by appropriate legislative action It may be used for a very limited purpose, such as the maintenance of a historic landmark, or it may nance an entire function of government, such as public education or highways A special revenue fund may be administered by the regularly constituted administrative and nancial organization of the government; by an independent body or special purpose local district, such as a park board or the board of directors of a water district; or by a quasi-independent body In some cases, the fund may be administered by an independent board, but the government maintains the accounting records because the independent board does not have the necessary personnel or other facilities Some of the activities mentioned above could also be accounted for in an enterprise fund Deciding which type of fund to use is often dif cult Basically, unless the government determines that the activity should be nanced and operated in a manner similar to that for private business enterprises, the activity should be accounted for as a special revenue fund A special revenue fund is not appropriate, however, when the costs, including depreciation, of providing goods or services to the general public on a continuing basis are to be nanced or recovered primarily through user charges Also, a special revenue fund is not appropriate when the government has decided that periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes (iii) Debt Service Funds Debt service funds exist to account for the accumulation of resources for, and the payment of, long-term debt principal and interest other than that which it is issued for and serviced primarily by an enterprise or similar trust fund A debt service fund is necessary only if it is legally required or if resources are being accumulated for future payment Although governments may incur a wide variety of debt, the more common types are described below Term (or sinking fund) bonds are being replaced by serial bonds as the predominant form of state and local government debt For term bonds, debt service consists of annual additions of resources being made to a cumulative investment fund for repayment of the issue at maturity The additions, also called sinking fund installments, are computed on an actuarial basis, which includes assumptions that certain rates of interest will be earned from investing the resources accumulating in the investment fund If the actual earnings are less than the planned earnings, subsequent additions are increased; if the earnings are greater than planned, the excess is carried forward until the time of the nal addition of the fund Because term bond principal is due at the end of the bond s term, the expenditure for repayment of principal is recognized at that time Debt service on serial bonds, however, generally consists of preestablished principal payments that are due on an annual basis and interest payments based on either xed or variable rates that are due on a semiannual basis No sinking fund is involved in the repayment of serial bonds The revenues for a debt service fund come from one or more sources, with property taxes being the predominant source Taxes that are speci ed for debt service appear as a revenue of the debt.

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19 20,21

Challenges and Exclusions of Economists by Case Type; 2000 2002

473 EXPERT WITNESS CHALLENGES AND EXCLUSIONS: 2000 2002

Bancroft J, 1984 Bancroft J, et al 1984 Buckman MT & Kellner R, 1984 Dornan WA & Malsbury CW, 1989 Muller P, et al 1979

47 7

risk of challenge and possible exclusion than an accountant/CPA functioning as a nancial expert in matters that do not involve these components Hence, we believe it is the nature of the cases and the required analyses that explain the different exclusion rates of CPAs and economists rather than alternative explanations16 Other details to our study are presented in the remainder of this chapter, followed by additional conclusion

473 EXPERT WITNESS CHALLENGES AND EXCLUSIONS: 2000 2002

22,23,24,25,26

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In frame 2 of the actions layer, type or paste in the following ActionScript, which you can find in frame 2 of the actions layer of 46fla on the CD-ROM:

Reported in Exhibit 473 is the number of challenges relating to the admissibility of nancial and non nancial expert witnesses over the January 2000 through December 2002 time period The results of these challenges are also reported in Exhibit 473 Our investigation indicates that:

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a total of 165 times (184 percent) while 730 challenges (816 percent) involved non nancial experts When nancial experts were challenged, their testimony was excluded in whole or in part in 68 cases or 412 percent of the time17 In contrast, non nancial experts were excluded in whole or in part in 336 cases or 460 percent of the time18 Financial and non nancial experts have their testimony excluded entirely at a higher rate than excluded in part Our investigation reveals 721 percent of the nancial expert exclusions and 768 percent of the non nancial expert exclusions were in whole rather than in part Based on the above data, once challenged, nancial and non nancial experts appear to be excluded in roughly the same proportions The annual number of challenges and rate of exclusions of nancial and non nancial expert witnesses over the 2000 2002 time period is presented in Exhibit 474 Based on annual data:

27 28

The number of challenges of experts has trended upward The total number of expert chal-

lenges increased by 156 percent in 2001 (from 250 in 2000 to 289 in 2001) and increased by 232 percent in 2002 (from 289 in 2001 to 356 in 2002) Financial expert challenges have stayed relatively steady as a percentage of the total number of challenges over this three-year period In 2000, 55 of the 250 challenges (220 percent) were challenges of nancial experts In 2002, 66 of the 356 challenges (185 percent) were challenges of nancial experts

Use of Monoamine oxidase inhibitors, Selective serotonin reuptake inhibitors and antipsychotic medication users Apomorphine/levodopa Parkinson disease patients Cimetidine and ranitidine users