Several Questions

       The power to enact and enforce a tax levy.        Absence of profit motive.        Resource providers do not expect benefits proportional to the resources provided.        Absence of a defined ownership interest that can be sold, transferred, or redeemed.

       When goods and services are received, but only if resources are available in the fund.        When purchases orders are issued, regardless of whether or not resources are available in the fund.        When goods and services are received, regardless of whether or not resources are available in the fund.        When the invoices are paid.

       A debit to the Encumbrance Account.        A credit to the Encumbrance Account.        A credit to Budgetary Fund Balance—Reserve for Encumbrance Account.        A debit to the Accounts Payable account.

       Special Revenue Funds may be used when a government wishes to segregate income for specific purposes.        Special Revenue Funds may only be used when a substantial portion of the resources are provided by restricted or committed revenue sources.        Assigned resources can be accounted for in a Special Revenue Fund.        Once a Special Revenue Fund is established by the governmental entity, it will continue to be a Special Revenue Fund until all of the resources are exhausted.

       The government-wide financial statements are not required to present prior-year data.        The government-wide financial statements include a Statement of Net Assets, Statement of Activities, and Statement of Cash Flows.        The government-wide financial statements include capital assets, include infrastructure, and reflect depreciation, except for the infrastructure using the modified approach.        All of the above are true.

       Debit a receivable account and credit deferred revenues, a liability account.        No entry is required.        Debit a receivable account and credit the Fund Balance account.        Debit a receivable account and credit a revenue account.

7. (TCOs A and B) Identify at least three items that are found in the Required Supplementary Information section of the Comprehensive Annual Financial Report. (Points : 10)

8. (TCO D) The City of Davenport adopted the following budget for fiscal year 2012: Anticipated Revenues: Property Taxes                                                                            $5,340,000 Licenses and Permits                                                                       523,000 Fines and Forfeits                                                                            425,000 Total                                                                                              $6,288,000   Approved Expenditures: General Government                                                                 $2,160,000 Public Safety                                                                                  2,450,000 Public Works                                                                                  1,560,000 Total                                                                                              $6,170,000   In addition, the City reported the following actual amounts for the same fiscal year:   Revenues: Property Taxes                                                                             $5,375,000 Licenses and Permits                                                                        519,000 Fines and Forfeits                                                                              437,000 Total                                                                                               $6,331,000   Expenditures-Current Year: General Government                                                                    2,175,000 Public Safety                                                                                   2,490,000 Public Works                                                                                   1,542,000 Total                                                                                                 6,207,000   Required: Prepare a budgetary comparison schedule for the city ended June 30, 2012 assuming the fund balance of the General Fund (Budgetary Basis) was $598,000 on July 1, 2011. No “original budget” column will be required. Please include a “variance” column. Please arrange your budget utilizing the appropriate format. (Points : 10)

9. (TCO D) The following information was available for the General Fund for the City of Newman for the Year Ended June 30, 2012.   a. Revenues for the year: Property Taxes of $6,240,000, fines and penalties of $484,000, sales taxes of $453,000, intergovernmental revenue of $272,000, and charges for services of $64,000. b. Expenditures from current appropriations included: General Government of $3,320,000,  Public Safety of $1,923,000, Public Works of $821,000, Health and Welfare of $294,000, and Miscellaneous Appropriations of $42,000. c. A transfer was made from the General Fund to the Debt Service Fund of $700,000. A transfer of $510,000 was made to the General Fund from the Enterprise Fund. d. A sale of city-owned land was made to a private enterprise which is considered infrequent but not unusual was under city management control. The proceeds amounted to $330,000 and the land had a basis of $200,000 which was reported in the government-wide Statement of Net Assets the year before. e. Beginning balances included Fund Balance in the amount of $290,000 and Reserve for Encumbrances in the amount of $20,000. Required: Prepare a statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund for the City of Newman for the Year Ended June 30, 2012. (Points : 10)