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.
2.
3.
4.
5.
6.
7.
8.
9.
10.
C.
D.
B.
C.
C.
B.
A.
C.
A.
B.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
B.
A.
D.
C.
D.
D.
D.
C.
D.
C.
3-3.
3-1
3-4.
CITY OF SOUTH DUNDEE
APPROPRIATION, EXPENDITURES, AND ENCUMBRANCES LEDGER
GENERAL FUND: Public Safety - Police
MONTH: JULY, 2006
Transaction
1
Reference
Appropriations Encumbrances Expenditures
Budget
2
Purchase Orders
Issued
3
4
Invoices received
and approved for
payment
Payrolls
5
Budget Revision
($18,000,000)
Unexpended
Appropriation
Balance
= SUM
($18,000,000)
$600,000
($580,000)
($17,400,000)
$575,000
$898,000
$20,000
($17,405,000)
($16,507,000)
($16,487,000)
($17,980,000)
$20,000
$1,473,000
($16,487,000)
$ Amounts in ( ) denote credits
3-5.
Debits
10,000,000
A. Estimated Revenues Control
Appropriations Control
Budgetary Fund Balance
B.
C.
Credits
9,800,000
200,000
Estimated Revenues Control
Budgetary Fund Balance
Appropriations Control
9,800,000
200,000
10,000,000
Estimated Revenues Control
Estimated Other Financing Sources
Control
Appropriations Control
Estimated Other Financing
Uses Control
Budgetary Fund Balance
10,000,000
1,300,000
9,800,000
1,200,000
300,000
3-2
D. Estimated Revenues Control
Estimated Other Financing
Sources Control
Budgetary Fund Balance
Appropriations Control
Estimated Other Financing
Uses Control
9,800,000
1,200,000
300,000
10,000,000
1,300,000
3-6.
A.
Total Appropriations
Less: Other Revenues
Amount to be Raised From Property Tax
B.
Amount to be Raised From Property Tax
Divide by Percentage Collectible
Property Tax Levy (Rounded)
26,000,000
.98
26,530,612
C.
Total Market Value of Property
Exempt for Religious and Other Reasons
Assessed Property
Assessment Ratio
2,000,000,000
200,000,000
1,800,000,000
X 1/3
Assessed Value of Property
50,000,000
24,000,000
26,000,000
600,000,000
Less: Exemptions for Household, Old Age, etc.
Net Assessed Valuation
80,000,000
520,000,000
Property Tax Levy
26,530,612
Net Assessed Valuation
520,000,000
Property Tax Rate
.0510
or $5.10 per $100 net assessed valuation
D.
$
Millage Rate = $51.00 (the rate per $1,000 NAV)
3-3
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 SYCAMORE
GENERAL JOURNAL
YEAR ENDED DECEMBER 31, 2007
Credits
Debits
1,000,000
A. Estimated Revenues Control
Appropriations Control
Budgetary Fund Balance
B.
C.
980,000
20,000
Cash
Revenues Control
1,010,000
1,010,000
Encumbrances Control
Budgetary Fund Balance Reserved for
Encumbrances
D. Budgetary Fund Balance Reserved for
Encumbrances
Encumbrances Control
E.
500,000
500,000
470,000
470,000
Expenditures Control
Accounts Payable
480,000
Expenditures Control
Accounts Payable
460,000
480,000
460,000
3-4
3-7 (Continued).
F. Appropriations Control
Budgetary Fund Balance
Estimated Revenues Control
980,000
20,000
1,000,000
Revenues Control
Expenditures Control
Encumbrances Control
Fund Balance-Unreserved
1,010,000
940,000
30,000
40,000
Budgetary Fund Balance-Reserved for
Encumbrances
Fund Balance-Reserved for
Encumbrances
30,000
30,000
3-8 (A).
JOHNSON COUNTY
GENERAL FUND -GENERAL JOURNAL
YEAR ENDED DECEMBER 31, 2007
General Ledger
`
1. Estimated Revenues Control
Budgetary Fund Balance
Debits
Credits
Debits
Credits
10,100,000
10,100,000
Revenues Ledger:
Sales Taxes
Fines and Forfeits
Licenses and permits
Intergovernmental
Revenues
2. Budgetary Fund Balance
Appropriations Control
Subsidiary Ledger
6,000,000
2,000,000
1,750,000
350,000
9,690,000
9,690,000
Appropriations Ledger:
General Government
Public Safety
Culture and
Recreation
Health and Welfare
2,100,000
3,890,000
700,000
3,000,000
3-5
3-8 (A) (Continued).
3. Cash
Revenues Control
10,045,000
10,045,000
Revenues Ledger:
Sales Taxes
Fines and Forfeits
Licenses and Permits
Intergovernmental
Revenues
4. Encumbrances Control
Budgetary Fund Balance
Reserved for
Encumbrances
Encumbrances Ledger:
General Government
Public Safety
Culture and Recreation
Health and Welfare
5A. Budgetary Fund BalanceReserved for Encumbrances
Encumbrances Control
5,930,000
1,990,000
1,740,000
385,000
2,030,000
2,030,000
450,000
800,000
280,000
500,000
1,725,000
1,725,000
Encumbrances Ledger:
General Government
Public Safety
Culture and Recreation
Health and Welfare
5B. Expenditures Control
Accounts Payable
450,000
500,000
275,000
500,000
1,738,000
1,738,000
Expenditures Ledger:
General Government
Public Safety
Culture and Recreation
Health and Welfare
6A. Estimated Revenues Control
Budgetary Fund Balance
452,000
510,000
276,000
500,000
35,000
35,000
Revenues Ledger:
Intergovernmental Revenues
6B. Budgetary Fund Balance
Appropriations Control
35,000
100,000
100,000
3-6
3-8 (A) (Continued).
Appropriations Ledger:
General Government
7.
100,000
Expenditures Control
Accounts Payable
7,745,000
7,745,000
Expenditures Ledger:
General Government
Public Safety
Culture and Recreation
Health and Welfare
3-8 (B).
1,747,000
3,080,000
418,000
2,500,000
JOHNSON COUNTY
GENERAL LEDGER
Estimated Revenues
Control
Revenues Control
(1)10,100,000
(6a) 35,000
10,135,000
(3)10,045,000
Appropriations Control
(2)9,690,000
(6b) 100,000
9,790,000
Budgetary Fund Balance
Reserved
for Encumbrances
(5a)1,725,000
Expenditures Control
Cash
(3)10,045,000
Accounts Payable
(5b)1,738,000
(7)7,745,000
9,483,000
(5b)1,738,000
(7) 7,745,000
9,483,000
Encumbrances Control
(4)2,030,000
(4)2,030,000
305,000
305,000
(5a)1,725,000
3-7
Budgetary Fund Balance
(2)9,690,000
(6b) 100,000
(1)10,100,000
(6a) 35,000
345,000
3-8 (C).
JOHNSON COUNTY
REVENUE LEDGER
$ Amounts in ( ) denote credits
Transaction
Reference
Estimated
Revenues
Actual
Revenues
Estimated
Revenues Not
Yet Realized
[= Sum]
SALES TAXES
(1)
Initial Budget
(3)
Collections
TOTAL
FINES AND
FORFEITS
(1)
(3)
$6,000,000
Initial Budget
Collections
TOTAL
LICENSES
AND PERMITS
(1)
(3)
TOTAL
$6,000,000
TOTAL
TOTAL: ALL REVENUES
$70,000
($5,930,000)
$70,000
($1,990,000)
$2,000,000
$10,000
($1,990,000)
$10,000
($1,740,000)
$1,750,000
$10,000
($1,740,000)
$10,000
$1,750,000
$1,750,000
INTERGOVERNMENTAL
REVENUE
(1)
Initial Budget
(3)
Collections
(6)
Budget Revision
($5,930,000)
$2,000,000
$2,000,000
Initial Budget
Collections
$6,000,000
$350,000
($385,000)
$350,000
($35,000)
$0
$385,000
($385,000)
$0
$10,135,000
($10,045,000)
$35,000
$90,000
Proof
Estimated Revenues Control Account = 10,100,000 (Entry 1) + 35,000
(Entry 6)=$10,135,000
Subsidiary = $6,000,000 + 2,000,000 + 1,750,000 + 385,000 = $10,135,000
Revenues 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 FUND
APPROPRIATIONS, ENCUMBRANCES, AND EXPENDITURES LEDGER
$ Amounts in ( ) denote credits
Transaction
GENERAL
GOVERNMENT
Reference
2
Budget
4
Purchase Orders
Issued
5
6
Invoices received
and approved for
payment
Budget Revision
7
Personnel
services
TOTAL
Unexpended
Appropriation
Balance
Appropriations Encumbrances Expenditures
= SUM
($2,100,000)
($2,100,000)
$450,000
($450,000)
($1,650,000)
$452,000
($100,000)
($2,200,000)
$0
($1,648,000)
($1,748,000)
$1,747,000
($1,000)
$2,199,000
($1,000)
PUBLIC
SAFETY
2
Budget
4
Purchase Orders
Issued
$800,000
5
Invoices received
and approved for
payment
($500,000)
7
Personnel
services
TOTAL
($3,890,000)
($3,890,000)
($3,890,000)
$300,000
($3,090,000)
$510,000
($3,080,000)
$3,080,000
$0
$3,590,000
$0
CULTURE &
RECREATION
TOTAL
2
Budget
($700,000)
4
Purchase Orders
Issued
$280,000
5
Invoices received
and approved for
payment
($275,000)
7
Personnel
services
($700,000)
3-9
($700,000)
$5,000
($420,000)
$276,000
($419,000)
$418,000
($1,000)
$694,000
($1,000)
HEALTH &
WELFARE
2 Budget
($3,000,000)
4 Purchase Orders Issued
($3,000,000)
$500,000
($2,500,000)
Invoices received and
5 approved for payment
($500,000)
7 Personnel services
$500,000
($2,500,000)
$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)
Proof
Encumbrances Control = $2,030,000 (Entry 4) - $1,725,000 (Entry 5A)
Subsidiary Accounts-Public Safety, $300,000; Culture and Rec., $5,000
Expenditures Control = $1,738,000 (Entry 5B) + $7,745,000 (Entry 7)
Subsidiary = $2,199,000 + $3,590,000 + $694,000 + $3,000,000
Appropriations Control = ($9,690,000 (Entry 2) + 100,000 (Entry 6b)
Subsidiary = $2,200,000 + $3,890,000 + $700,000 + $3,000,000
3-10
= $ 305,000
= $ 305,000
= $9,483,000
= $9,483,000
= $9,790,000
= $9,790,000
3-8 (D).
JOHNSON COUNTY
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED DECEMBER 31, 2007
Budgeted Amounts
Original
Final
Revenues:
Sales Taxes
Fines and Forfeits
Licenses and Permits
Intergovernmental
Total Revenues
Actual
Amounts
(Budgetary
Basis)
Variance
With Final
Budget
Positive
(Negative)
$6,000,000
2,000,000
1,750,000
350,000
10,100,000
$6,000,000
2,000,000
1,750,000
385,000
10,135,000
$5,930,000
1,990,000
1,740,000
385,000
10,045,000
$(70,000)
(10,000)
(10,000)
-0(90,000)
2,100,000
3,890,000
700,000
3,000,000
2,200,000
3,890,000
700,000
3,000,000
2,199,000
3,890,000
699,000
3,000,000
1,000
--1,000
---
9,690,000
9,790,000
9,788,000
2,000
Excess (Deficiency) of Revenues
Over Expenditures and
Encumbrances
410,000
345,000
257,000
(88,000)
Fund Balance, Beginning
150,000
150,000
150,000
---
$560,000
$495,000
$ 407,000
$(88,000)
Expenditures and Encumbrances:
General Government
Public Safety
Culture and Recreation
Health and Welfare
Total Expenditures and
Encumbrances
Fund Balance, Ending
(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 Government
Public Safety
Culture and Recreation
Health and Welfare
Total
$ 1,000
--0-1,000
--0-$ 2,000
3-11
3-9.
CITY OF GRAFTON
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED DECEMBER 31, 2007
Budgeted Amounts
Original
Final
Revenues:
Taxes
Licenses and Permits
Intergovernmental
Miscellaneous
Total Revenues
Actual
Amounts
(Budgetary
Basis)
Variance
With Final
Budget
Positive
(Negative)
$3,000,000
800,000
300,000
200,000
4,300,000
$3,000,000
800,000
290,000
197,000
4,287,000
$3,000,000
801,320
293,000
198,000
4,292,320
--1,320
3,000
1,000
5,320
900,000
2,000,000
1,400,000
898,000
2,000,000
1,400,000
898,000
1,999,000
1,398,000
--1,000
2,000
4,300,000
4,298,000
4,295,000
3,000
--0--
(11,000)
(2,680)
8,320
Other Financing Sources(Uses)
Transfers to Other Funds
(600,000)
(600,000)
(600,000)
---
Net Change in Fund Balance
(600,000)
(611,000)
(602,680)
8,320
1,038,000
1,038,000
1,038,000
---
$438,000
$427,000
$ 435,320
$8,320
Expenditures and Encumbrances:
General Government
Public Safety
Health and Welfare
Total Expenditures and
Encumbrances
Excess (Deficiency) of Revenues
Over Expenditures and
Encumbrances
Fund Balance, Beginning
Fund Balance, Ending
3-12
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
3-13