Financial Statements in Government: A Compliance and Liquidity Approach

Homework for chapter III of Financial Reporting in Government
By Dr. John Sacco , George Mason University
Revised Sunday, November 16, 1997

A set of data is given for a particular jurisdiction. You are to do an analysis of the financial compliance , success , and conditions of this jurisdiction. First, offer a definition of each of these three terms, being sensitive to both narrow and board features of the definition. Then, do the quantitative analysis of the degree of compliance, success, and health using the data below. The lesson (lesson 4 in this chapter) on Using the Financial Statements can be helpful for this assignment. Once in this lesson these are some key terms to search:
  Budget for the general fund:
  Revenues:
   taxes           1,000,000
   fees                40000
   fines               10000
   intergovt           20000
  Total                                1,070,000
  Expenditures:
   administration     400000
   safety             500000
   recreation         150000
   health              20000
  Total                                1,070,000

  Actual for the general fund:
  Revenues:
   taxes             900,000
   fees                44000
   fines               12000
   intergovt           18000
  Other sources
   borrowing           79000
  Total                                 974,000
  Expenditures:
   administration     405000
   safety             500000
   recreation         130000
   health              18000
  Total                               1,053,000

  Other data
  general obligation debt    30,000,000      
  total debt                 45,000,000

  population                    250,000      


  current assets                          19x0     19x1     19x2
  cash and short term investments        80000    83000    85000

  current liabilities
  vouchers payable                       78000    82000    85500
  

See Also: project elements , course readings , the glossary , stories , exercies and demonstrations , and a summary