Chapter 3

3-1. The solution to this and the first exercise of Chapters 1 and 2 and 4 through 9 will differ from student to student assuming each has a different CAFR.

3-2.1. C.2. D.3. B.4. C.5. C.6. B.7. A.8. C.9. A.10. B.

3-3.1. B.2. A.3. D.4. C.5. D.6. D.7. D.8. C.9. D.10. C.

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3-4. CITY OF SOUTH DUNDEEAPPROPRIATION, EXPENDITURES, AND ENCUMBRANCES LEDGER

GENERAL FUND: Public Safety - Police

MONTH: JULY, 2006

Unexpended Appropriation

BalanceTransaction Reference Appropriations Encumbrances Expenditures = SUM

1  Budget ($18,000,000)     ($18,000,000)

 2Purchase Orders Issued   $600,000   ($17,400,000)

 3

Invoices received and approved for payment   ($580,000) $575,000 ($17,405,000)

 4 Payrolls     $898,000 ($16,507,000)

 5 Budget Revision $20,000     ($16,487,000)  

($17,980,000) $20,000 $1,473,000 ($16,487,000)

$ Amounts in ( ) denote credits 3-5.

Debits Credits

A. Estimated Revenues Control Appropriations Control Budgetary Fund Balance

10,000,0009,800,000

200,000

B. Estimated Revenues ControlBudgetary Fund Balance

Appropriations Control

9,800,000200,000

10,000,000

C. Estimated Revenues ControlEstimated Other Financing Sources Control

Appropriations ControlEstimated Other Financing Uses ControlBudgetary Fund Balance

10,000,000

1,300,0009,800,000

1,200,000300,000

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D. Estimated Revenues ControlEstimated Other Financing Sources ControlBudgetary Fund Balance

Appropriations ControlEstimated Other Financing Uses Control

9,800,000

1,200,000300,000

10,000,000

1,300,000

3-6.

A. Total AppropriationsLess: Other RevenuesAmount to be Raised From Property Tax

$ 50,000,00024,000,000

26,000,000

B. Amount to be Raised From Property TaxDivide by Percentage CollectibleProperty Tax Levy (Rounded)

26,000,000 .98 26,530,612

C. Total Market Value of PropertyExempt for Religious and Other ReasonsAssessed PropertyAssessment Ratio

2,000,000,000200,000,000

1,800,000,000 X 1/3

Assessed Value of Property 600,000,000

Less: Exemptions for Household, Old Age, etc. 80,000,000

Net Assessed Valuation 520,000,000

Property Tax Levy

Net Assessed Valuation

Property Tax Rate

26,530,612

520,000,000

.0510

or $5.10 per $100 net assessed valuation

D. Millage Rate = $51.00 (the rate per $1,000 NAV)

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3-6 (Continued).E. Market Value of Home 180,000

Assessment Ratio 1/3

Assessed Value (Rounded) 60,000

Homestead Exemption 2,000

N.A.V. Subject to Tax 58,000

Property Tax Rate X $ 0.0510

Property Tax $ 2,958.00

3-7.

VILLAGE OF SYCAMOREGENERAL JOURNAL

YEAR ENDED DECEMBER 31, 2007

Debits

Credits

A. Estimated Revenues Control Appropriations Control Budgetary Fund Balance

1,000,000980,00020,000

B. Cash Revenues Control

1,010,0001,010,000

C. Encumbrances Control Budgetary Fund Balance Reserved for Encumbrances

500,000

500,000

D. Budgetary Fund Balance Reserved for Encumbrances Encumbrances Control

Expenditures Control Accounts Payable

470,000

480,000

470,000

480,000

E. Expenditures Control Accounts Payable

460,000460,000

3-4

3-7 (Continued).F. Appropriations Control

Budgetary Fund Balance Estimated Revenues Control

Revenues Control Expenditures Control Encumbrances Control Fund Balance-Unreserved

Budgetary Fund Balance-Reserved for Encumbrances Fund Balance-Reserved for Encumbrances

980,00020,000

1,010,000

30,000

1,000,000

940,00030,00040,000

30,000

3-8 (A).JOHNSON COUNTY

GENERAL FUND -GENERAL JOURNALYEAR ENDED DECEMBER 31, 2007

General Ledger Subsidiary Ledger

` Debits Credits Debits Credits

1. Estimated Revenues Control Budgetary Fund Balance

10,100,00010,100,000

Revenues Ledger:Sales TaxesFines and ForfeitsLicenses and permitsIntergovernmental Revenues

6,000,0002,000,0001,750,000

350,000

2. Budgetary Fund BalanceAppropriations Control

9,690,0009,690,000

Appropriations Ledger:General GovernmentPublic SafetyCulture and

RecreationHealth and Welfare

2,100,0003,890,000

700,0003,000,000

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3-8 (A) (Continued).

3. CashRevenues Control

10,045,000

10,045,000

Revenues Ledger:Sales TaxesFines and ForfeitsLicenses and PermitsIntergovernmental Revenues

5,930,0001,990,0001,740,000

385,000

4. Encumbrances ControlBudgetary Fund Balance

Reserved for Encumbrances

2,030,000

2,030,000

Encumbrances Ledger:General GovernmentPublic SafetyCulture and RecreationHealth and Welfare

450,000800,000280,000500,000

5A. Budgetary Fund Balance- Reserved for Encumbrances

Encumbrances Control1,725,000

1,725,000

Encumbrances Ledger:General GovernmentPublic Safety

Culture and RecreationHealth and Welfare

450,000500,000275,000500,000

5B. Expenditures Control Accounts Payable

1,738,0001,738,000

Expenditures Ledger: General Government Public Safety Culture and Recreation Health and Welfare

452,000510,000276,000500,000

6A. Estimated Revenues Control Budgetary Fund Balance

35,00035,000

Revenues Ledger: Intergovernmental Revenues 35,000

6B. Budgetary Fund Balance Appropriations Control

100,000100,000

3-6

3-8 (A) (Continued).

Appropriations Ledger: General Government 100,000

7. Expenditures Control Accounts Payable

7,745,0007,745,000

Expenditures Ledger: General Government Public Safety Culture and Recreation Health and Welfare

1,747,0003,080,000

418,0002,500,000

3-8 (B). JOHNSON COUNTY GENERAL LEDGER

Estimated RevenuesControl Revenues Control Cash

(1)10,100,000(6a) 35,000

(3)10,045,000 (3)10,045,000

10,135,000

Appropriations Control Expenditures Control Accounts Payable(2)9,690,000(6b) 100,000

(5b)1,738,000(7)7,745,000

(5b)1,738,000(7) 7,745,000

9,790,000 9,483,000 9,483,000

Budgetary Fund BalanceReserved

for Encumbrances Encumbrances Control Budgetary Fund Balance(5a)1,725,000 (4)2,030,000 (4)2,030,000 (5a)1,725,000 (2)9,690,000

(6b) 100,000(1)10,100,000(6a) 35,000

305,000 305,000 345,000

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3-8 (C). JOHNSON COUNTY

REVENUE LEDGER

$ Amounts in ( ) denote credits

Transaction ReferenceEstimated Revenues

Actual Revenues

Estimated Revenues Not Yet Realized

[= Sum]

SALES TAXES

(1) Initial Budget $6,000,000   $6,000,000

(3) Collections   ($5,930,000) $70,000

TOTAL $6,000,000 ($5,930,000) $70,000

FINES AND FORFEITS

(1) Initial Budget $2,000,000   $2,000,000 (3) Collections   ($1,990,000) $10,000

 TOTAL $2,000,000 ($1,990,000) $10,000

LICENSES AND PERMITS

(1) Initial Budget $1,750,000   $1,750,000 (3) Collections   ($1,740,000) $10,000

TOTAL  $1,750,000 ($1,740,000) $10,000

INTER-GOVERNMENTAL

REVENUE(1) Initial Budget $350,000   $350,000 (3) Collections   ($385,000) ($35,000)(6) Budget Revision $35,000   $0

 TOTAL $385,000 ($385,000) $0

TOTAL: ALL REVENUES $10,135,000 ($10,045,000) $90,000

ProofEstimated Revenues Control Account = 10,100,000 (Entry 1) + 35,000 (Entry 6)=$10,135,000Subsidiary = $6,000,000 + 2,000,000 + 1,750,000 + 385,000 = $10,135,000Revenues Control = $10,045,000 (Entry 3)Subsidiary = $5,930,000 + 1,990,000 + 1,740,000 + 385,000 = $10,045,000

3-8

3-8 (C). JOHNSON COUNTY – GENERAL FUNDAPPROPRIATIONS, ENCUMBRANCES, AND EXPENDITURES LEDGER

$ Amounts in ( ) denote creditsUnexpended

Appropriation Balance

Transaction Reference Appropriations Encumbrances Expenditures = SUMGENERAL

GOVERNMENT

2 Budget ($2,100,000)     ($2,100,000)

4Purchase Orders Issued   $450,000   ($1,650,000)

5

Invoices received and approved for payment   ($450,000) $452,000 ($1,648,000)

6 Budget Revision ($100,000)     ($1,748,000)

7Personnel services     $1,747,000 ($1,000)

 TOTAL ($2,200,000) $0 $2,199,000 ($1,000)

PUBLICSAFETY

2 Budget ($3,890,000)     ($3,890,000)

4Purchase Orders Issued   $800,000   ($3,090,000)

5

Invoices received and approved for payment   ($500,000) $510,000 ($3,080,000)

7Personnel services     $3,080,000 $0

 TOTAL ($3,890,000) $300,000 $3,590,000 $0

CULTURE &RECREATION

2 Budget ($700,000)     ($700,000)

4Purchase Orders Issued   $280,000   ($420,000)

5

Invoices received and approved for payment   ($275,000) $276,000 ($419,000)

7Personnel services     $418,000 ($1,000)

 TOTAL ($700,000) $5,000 $694,000 ($1,000)

3-9

HEALTH &WELFARE

2 Budget ($3,000,000)     ($3,000,000)

4 Purchase Orders Issued   $500,000   ($2,500,000)

5Invoices received and approved for payment   ($500,000) $500,000 ($2,500,000)

7 Personnel services     $2,500,000 $0  

TOTAL ($3,000,000) $0 $3,000,000 $0

TOTAL ALL DEPARTMENTS ($9,790,000) $305,000 $9,483,000 ($2,000)

ProofEncumbrances Control = $2,030,000 (Entry 4) - $1,725,000 (Entry 5A) = $ 305,000Subsidiary Accounts-Public Safety, $300,000; Culture and Rec., $5,000 = $ 305,000Expenditures Control = $1,738,000 (Entry 5B) + $7,745,000 (Entry 7) = $9,483,000Subsidiary = $2,199,000 + $3,590,000 + $694,000 + $3,000,000 = $9,483,000Appropriations Control = ($9,690,000 (Entry 2) + 100,000 (Entry 6b) = $9,790,000Subsidiary = $2,200,000 + $3,890,000 + $700,000 + $3,000,000 = $9,790,000

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3-8 (D).JOHNSON COUNTY

BUDGETARY COMPARISON SCHEDULEGENERAL FUND

YEAR ENDED DECEMBER 31, 2007

Budgeted Amounts

ActualAmounts

(Budgetary Basis)

Variance With Final

Budget Positive

(Negative)Original Final Revenues:Sales TaxesFines and ForfeitsLicenses and PermitsIntergovernmental

Total Revenues

$6,000,000

2,000,0001,750,000

350,00010,100,00

0

$6,000,0002,000,0001,750,000

385,00010,135,000

$5,930,0001,990,0001,740,000 385,000

10,045,000

$(70,000)(10,000)(10,000) -0-

(90,000)

Expenditures and Encumbrances:General GovernmentPublic SafetyCulture and RecreationHealth and Welfare

Total Expenditures and Encumbrances

2,100,0003,890,000

700,0003,000,000

9,690,000

2,200,0003,890,000

700,0003,000,000

9,790,000

2,199,0003,890,000

699,000 3,000,000

9,788,000

1,000 ---

1,000 ---

2,000

Excess (Deficiency) of Revenues Over Expenditures and Encumbrances

Fund Balance, Beginning

Fund Balance, Ending

410,000

150,000

$560,000

345,000

150,000

$495,000

257,000

150,000

$ 407,000

(88,000)

---

$(88,000)

(E) The following amounts of appropriations for 2007 lapsed as of December 31, 2007 (The amount of each appropriation that was neither expended during 2007 nor encumbered at year-end--See the Variance column above):

General GovernmentPublic SafetyCulture and RecreationHealth and WelfareTotal

$ 1,000 --0-- 1,000 --0--$ 2,000

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3-9.CITY OF GRAFTON

BUDGETARY COMPARISON SCHEDULEGENERAL FUND

YEAR ENDED DECEMBER 31, 2007

Budgeted Amounts

ActualAmounts

(Budgetary Basis)

Variance With Final

Budget Positive

(Negative)Original Final Revenues:TaxesLicenses and PermitsIntergovernmentalMiscellaneous

Total Revenues

$3,000,000800,000300,000200,000

4,300,000

$3,000,000800,000

290,000197,000

4,287,000

$3,000,000801,320293,000

198,0004,292,320

---1,3203,000

1,000 5,320

Expenditures and Encumbrances:General GovernmentPublic SafetyHealth and Welfare

Total Expenditures and Encumbrances

900,0002,000,0001,400,000

4,300,000

898,0002,000,0001,400,000

4,298,000

898,0001,999,000

1,398,000

4,295,000

---1,000

2,000

3,000

Excess (Deficiency) of Revenues Over Expenditures and Encumbrances

Other Financing Sources(Uses) Transfers to Other Funds

Net Change in Fund Balance

Fund Balance, Beginning

Fund Balance, Ending

--0--

(600,000)

(600,000)

1,038,000

$438,000

(11,000)

(600,000)

(611,000)

1,038,000

$427,000

(2,680)

(600,000)

(602,680)

1,038,000

$ 435,320

8,320

---

8,320

---

$8,320

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3-10.

A. The Distinguished Budget Awards Program was first established in 1984. During 2002, 1,0404 governments participated in the program; 1,044 governments are expected to participate in 2003.

B. The answer to this question will vary from state to state.

C. The answer to this question will vary from state to state.

3-C. SEE THE SOLUTION TO CONTINOUS PROBLEM IN CHAPTER 4 OF THE INSTRUCTOR’S MANUAL

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