NON-Profit Accounting Assignment
jams_r1
LectureNotes.docx(1) Fiscal effort (GF) = (Total governmental funds revenue – total governmental funds intergovernmental revenue) /Median family income (SS – demographic per capita income x US average family size 3.14) OR Total appraised value of property (SS – taxable value of property)
This measures the extent to which a government is taking advantage of its fiscal capacity.
SS=CAFR statistical section.
(2) Operating position (GF)= unassigned fund balance from general fund/ total revenues from general fund, which measures the ability to handle unforeseen resource needs over the short-run.
(3) Liquidity (GF)= cash and short-term investments from general fund/ (total liabilities from general fund– deferred revenues from general fund), which measures the ability to meet short-term obligations with current assets.
(4) Resource growth (GW)= change in governmental activity net assets / total governmental activities net asset, which measures the growth/decline of financial resources. A positive percentage demonstrates improved financial performance, indicating a better position to face future financial challenges.
(5) Adequacy of revenue (GF)= (total governmental funds revenue – total governmental funds intergovernmental revenue) / total governmental funds expenditures, which measures whether a government’s own-source revenues are covering expenditures.
(6) Stability of revenue (GF):
Intergovernmental revenue percentage = intergovernmental revenues from funds other than capital project fund/ total revenues from funds other than capital project fund; lower ratios are better.
Property tax revenue percentage = total property tax revenue (SS – tax revenue by source) / total revenues from funds other than capital project fund; higher ratios are better.
(7) Debt burden (MD&A and SS)= Total tax-supported debt outstanding / population OR Total appraised value of property OR per capita income; lower ratio is preferred.
