Reference no: EM132585257

Question 1. The General Fund summary budget versus actual expenditures for the City of Delight for the Fiscal year Ended June 30, 2019 is:

Department                                       Budget                 Expend .  Encumb.           Variance           

Positive (Negative)

 

General Fund                                    1,000,000       1,100,000           50,000           100, 000 (negative)

Police                                                    8,590,000       8,420,000         400,000           170,000(positive)

Fire                                                        6,220,000       6,390,000         250,000           170,000(negative)

Community Development           2,100,000       1,760,000          300,000          340,000(positive)

Public Works                                      4,200,000       3,834,000            310,000        366,000(positive)

Parks and Recreation                     1,800,000        1,610,000        76,000             190,000(positive)

Total                                                     23,910,000      23,114,000      1,386,000       796,000(positive)

 

Students - fill in the designated spaces and understand that a positive variance exists when the budget exceeds actual expenditures and a negative variance occurs when actual expenditures exceed the budget.

Before the accounting department finalizing year-end reporting, what should they do regarding the encumbrance amounts?

Question 2. Total court expenses for the Convict Everyone Justice Court for the Fiscal Year Ended June 30, 2019 were $2,277,000 versus a budget of $1,942,000. The budget was based on the following:

a. Fixed building and equipment costs 220,000
b. Fixed judges' salaries and benefits 972,000
c. Fixed Exempt employee salaries & benefits 400,000
d. Non-exempt employee salaries and benefits,
including overtime (variable) 227,000
e. Variable office supplies 123,000
Total 1,942,000

The budget was based on the assumption of 14,000 court cases and variable costs of $25 per case. The head judge is being criticized/attacked for exceeding his budget and the County Board of Supervisors are encouraging his recall and removal from office. The Judge is arguing that his court's case load was 17,000 instead of 14,000 and he should not be punished for matters out of his control. The cost overrun is exclusively the result of variable expenses.

Answer the following:
1. What is the total of fixed budgeted costs?
Fixed building and equipment costs
Fixed judges' salaries and benefits
Fixed Exempt employee salaries & benefits
The total of fixed budgeted costs is.
2. Is this different from actual fixed costs?
3. What is the total of budgeted variable costs?
4. What is the total of actual variable costs?
5. What is the total of variable costs per case?

6. What is the total budget variance - positive or (negative)

Is the head judge's argument valid? Yes, no, or partially - explain in approximately 150 - 200 words

Question 3.

Assessing Municipal Financial Condition
City of Burbank CAFR
June 30, 2019

Introduction:
Following is a guideline for assessing a city's financial condition based on CAFR information only plus some outside demographic data. The City of Burbank and its related CAFR for the fiscal year ended June 30, 2019 have been chosen guidance for this, because it is a full- service city and has nearly all of the departmental components possible. Please refer to the accompanying CAFR as you move through the following.
1. Please provide a summary of the city's profile - see page 10/181 (or ii). (150-200 words)

2. Briefly discuss the form of government and the structure of the elected officials - see page 10/181 (or ii). (100-150 words).

3. Discuss in summary fashion the factors affecting the local economic condition - see pages 11/181 to 15/181 (or III to VII). Your conclusion response for this section should also include:
a. What are the strengths of this city based on the information provided?
b. What are the weaknesses of this city inferred from the information provided, or do you see anything else in the information that could be a concern for financial sustainability over the long-term that is not mentioned?
This section should range between 300 and 400 words.

4. Briefly describe the city's organization chart (an attachment or copy and paste of the chart is fine with just a few summary comments versus a more detailed narrative description).

5. What type of "opinion" has the city's auditors issued (23/181 or 2).

6. What is the city's General Fund net position (you add 000's - it is over 500 million), and what is the ratio of equity to total assets - divide total net position by total assets and display as a %. (28/181 or 7) - one sentence.

7. Does the city's General Fund display a relatively diverse revenue mix or is it too concentrated in one or a few main sources - any one category of 30% or more may be a concern (30/181 or 9) - 30-50 words.

8. What department or category consumes the largest amount of General Fund appropriations (expenditures in the case of a CAFR)? Does this present any challenges or inequities in your opinion? (31/181 or 10) - 50 - 100 words.

9. Discuss in summary form, the auditor's analysis of the city's overall financial condition. This section must include but is not limited to:
a. The presence and condition of enterprise funds (business activities such as water, sewer, etc. - may not be applicable for all cities).
b. Bonded debt ratings
(33/181-37/181 0r 12-16) - 200 to 300 words.

10. Incorporation of any other thoughts, analyses, etc, for the remainder of the CAFR (actual financial statements, key departments, funds, or large line items where actual expenditures exceeded budgeted appropriations) - 100 to 200 words.

11. Overall summary and conclusion - 150 -200 words.

Note; The overall assignment estimated word length is 1,000 to 1,300 words which equates to approximately 3 to 4 single-spaced pages.