1 Question Student Answer Chapters 1 and 2 2 Question TCO A Which of the following items are considered Required Supplementary Information RSI Management s Discussion and Analysis Budgetary Comparison Schedule Schedule of Risk Management Activities All of the above TCO B In addition to the government wide statements governmental entities are required to prepare fund financial statements for which of the following category of funds Student Answer Governmental type funds Proprietary funds Fiduciary funds All of the above Instructor Explanation Chapter 2 3 Question Student Answer TCO C The County Commission of Hunter County adopted its General Fund budget for the year ending June 30 comprising of estimated revenues of 3 750 000 and appropriations of 3 150 000 Hunter County utilizes the budgetary accounts required by GASB standards The budgeted excess of estimated revenues over appropriations will be recorded as a credit to Surplus Revenues 600 000 a debit to Estimated Excess Revenues 600 000 a credit to Budgetary Fund Balance 600 000 a memorandum entry only Instructor Explanation Chapter 3 4 Question Student Answer TCO D Which of the following is a true statement regarding the use of a Special Revenue Fund Special Revenue Funds may be used when a government wishes to segregate income for specific purposes Instructor Explanation Chapter 4 5 Question Student Answer 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 TCO B Which of the following is true regarding the government wide Statement of Net Assets The government wide Statement of Net Assets must be prepared in a classified format that is both assets and liabilities must be separated between current and long term liabilities A reporting entity primary government plus component units total column is required The government wide Statement of Net Assets reflects capital assets net of accumulated depreciation for both governmental and business type activities The government wide Statement of Net Assets includes all resources entrusted to the government including governmental proprietary and fiduciary TCO D GASB standards that each governmental reporting entity display General Fund in its general purpose financial statements Instructor Explanation Chapter 2 6 Question Student Answer require only one recommend one or more require one or more recommend one or more Instructor Explanation Chapters 2 and 3 7 Question TCOs A and B Please list and describe the three major sections of the Comprehensive Annual Financial Report and provide a brief description of what is included in each of the section Student Answer The three major sections of the Comprehensive Annual Financial Report CAFR are the Introductory section the Financial section and the Statistical section The Instructor Explanation The three major sections are introductory financial and statistical The introductory section includes the letter of the transmittal organizational chart and the list of the principal officials The financial section will include the auditor s report Management Discussion and Analysis the basic financial statements which includes the footnotes Reporting Supplementary Information and the combining statements for some of the non major funds those that are not reported separately in the basic financial statements and schedules The statistical section will include certain statistical tables that will include financial trends revenue and debt capacity demographical economical and operating information will be mentioned as well The data is generally presented for the past 10 years Points Received 10 of 10 8 Question TCO D The City of Minyard adopted the following budget for fiscal year 2012 Anticipated Revenues Property Taxes 4 480 000 Licenses and Permits 604 000 Fines and Forfeits 498 000 Interest on Penalties on taxes 24 000 Total 5 606 000 Approved Expenditures General Government 1 790 000 Public Safety 2 560 000 Public Works 1 120 000 Miscellaneous Appropriations 31 000 Total 5 501 000 In addition the City reported the following actual amounts for the same fiscal year Revenues Property Taxes 4 499 000 Licenses and Permits 584 000 Fines and Forfeits 491 000 Interest on Penalties on taxes 19 000 Total 5 593 000 Expenditures Current Year General Government 1 835 000 Public Safety 2 610 000 Public Works 1 076 000 Miscellaneous Appropriations 28 000 Total 5 549 000 Required Enter the template provided into the answer box and prepare a budgetary comparison schedule for the city ended June 30 2012 assuming the fund balance of the General Fund Budgetary Basis was 632 000 on July 1 2011 No original budget column will be required Please include a variance column Template City of Minyard Budgetary Comparison Schedule General Fund Final Budget Actual Variance Revenues Property Taxes Licenses and Permits Fines and Forfeits Interest on Penalties on Taxes Total Revenue Expenditures Encumbrances Current Year General Government Public Safety Public Works Miscellaneous Appropriations Total Expenditures Encumbrances Current Year Excess of Revenues Over Expenditures Encumbrances Current Year Net Change in Fund Balance Fund Balance July 1 2011 Fund Balance June 30 2012 Student Answer Final Budget Actual Variance Revenues 4 480 000 4 499 000 19 000 Property Taxes 604 000 584 000 20 000 Licenses and Permits 498 000 491 000 7 000 Fines and Forfeits 24 000 19 000 5 000 Interest on Penalties on Taxes Total Revenue 5 606 0000 5 593 000 13 000 Expenditures Encumbrances Current Year General Government 1 790 000 1 834 000 44 000 Public Safety 2 560 000 2 610 000 50 000 Public Works 1 120 000 1 076 000 44 000 Miscellaneous Appropriations 31 000 28 000 3 000 Total Expenditures Encumbrances Current Year 5 501 000 5 549 000 48 000 Excess of Revenues Over Expenditures 44 000 Encumbrances Current Year Net Change in Fund Balance Fund Balance July 1 2011 632 000 Fund Balance June 30 2012 588 000 Instructor Explanation City of Minyard Budgetary Comparison Schedule General Fund Final Budget Actual Variance Revenues Property Taxes 4 480 000 4 499 000 19 000 Licenses and Permits 604 000 584 000 20 000 Fines and Forfeits 498 000 491 000 7 000 Interest on Penalties on Taxes 24 000 5 000 19 000