Reference no: EM131033710
Utilizing the City of Houston Comprenhensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2015, assess the financial condition of the government. For purposes of this project, financial condition is broadly defined as a city's ability to provide an adequate range of services on a continuing basis. Specifically, it refers to a city's ability to (1) maintain existing service levels, (2) withstand major economic disruptions, and (3) meet the demands of a changing society in a dynamic economy. Examine the following issues and questions.
a. Analysis of revenues and revenue sources.
(1) How stable and flexible are the city's revenue sources in the event of adverse economic conditions?
(2) Is the revenue base well diversified, or does the city rely heavily on one or two major sources?
(3) Has the city been relying on intergovernmental revenues for an excessive portion of its operating expenditures?
(4) What percentage of total expenses of governmental activities is covered by program revenues? By general revenues?
(5) Do any extraordinary or special items reported in the statement of activities deserve attention?
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