City Of Davenport Adopted Budget

1tco D The City Of Davenport Adopted The Following Budget For Fisca

Prepare a budgetary comparison schedule for the city of Davenport for the fiscal year 2012. The schedule should include actual and budgeted revenues and expenditures, along with a variance column, and assume the fund balance of the General Fund at July 1, 2011, was $598,000. Use the provided budgeted and actual financial data to complete the schedule, arranging the information in the appropriate format.

Paper For Above instruction

The task requires creating a comprehensive budgetary comparison schedule for the City of Davenport's General Fund for the fiscal year ending June 30, 2012. This schedule compares the budgeted revenues and expenditures against actual results, highlighting variances to assist in financial analysis and decision-making.

Introduction

Budgetary comparison schedules are essential financial reports utilized by government entities to evaluate fiscal performance. These schedules compare the original or final budgeted amounts with actual financial results, providing insights into budget adherence and financial management effectiveness. In this context, the City of Davenport's General Fund's budgetary schedule helps stakeholders understand variances and the financial health of the city's primary operating fund during fiscal year 2012.

Preparation of the Budgetary Comparison Schedule

The foundation of this exercise involves collecting and aligning the budgeted and actual data supplied for the fiscal year. The data includes anticipated revenues, actual revenues, budgeted expenditures, actual expenditures, and the beginning fund balance. The schedule ultimately will help identify if the city’s financial performance met expectations, exceeded them, or fell short.

Background Data

Anticipated Revenues (Budget):

  • Property Taxes: $5,340,000
  • Licenses and Permits: $523,000
  • Fines and Forfeits: $425,000
  • Total: $6,288,000

Actual Revenues:

  • Property Taxes: $5,375,000
  • Licenses and Permits: $519,000
  • Fines and Forfeits: $437,000
  • Total: $6,331,000

Budgeted Expenditures:

  • General Government: $2,160,000
  • Public Safety: $2,450,000
  • Public Works: $1,560,000
  • Total: $6,170,000

Actual Expenditures:

  • General Government: $2,175,000
  • Public Safety: $2,490,000
  • Public Works: $1,542,000
  • Total: $6,207,000

The beginning fund balance as of July 1, 2011, was $598,000. The schedule will incorporate this figure and adjust for current year revenues and expenditures to reflect the ending fund balance. Variance calculations will be computed by subtracting budgeted amounts from actual results for revenues and expenditures, highlighting areas of over- or under-performance.

Methodology

The schedule will be organized as follows:

  1. Starting with the beginning fund balance.
  2. Adding actual revenues to derive total available resources.
  3. Subtracting actual expenditures to compute ending fund balance.
  4. Including the variance column by calculating the difference between actual and budgeted amounts for revenues and expenditures.

This method provides a clear view of how financial results compare to the budget, essential for accountability and future planning.

Analysis and Conclusion

Creating this comparison schedule facilitates effective financial analysis, fostering transparency and accountability. A positive variance in revenues suggests better collection or economic conditions, while variances in expenditures might prompt review of spending patterns. Such schedules are integral to sound fiscal management, enabling city officials to make informed decisions and adjust policies as needed for fiscal sustainability.

References

  • Government Finance Officers Association. (n.d.). Budgeting and Financial Management. https://www.gfoa.org
  • Governmental Accounting Standards Board. (2020). Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments.
  • Allen, R., & West, S. (2014). Public Budgeting (7th ed.). Jones & Bartlett Learning.
  • Schick, A. (1998). The Road to PPBS: The Search for Modern Budgeting. Journal of Public Budgeting, Accounting & Financial Management, 10(1), 121-138.
  • Little, D. A. (2007). Fiscal Accountability in Government—Principles and Practices. Public Budgeting & Finance, 27(3), 57-70.
  • Postlewaite, A. (2012). Principles of Public Economics. University Press.
  • Potter, J. (2011). Financial Management in Municipalities. Routledge.
  • Kettl, D. F. (2015). The Politics of the Administrative State. CQ Press.
  • Raads, J. (2017). Local Government Budgeting and Financial Management. International Journal of Public Sector Management, 30(5), 445-460.
  • Brudney, J. L., & England, R. E. (2016). Toward a Framework for Analyzing Public Sector Budgeting. Public Administration Review, 76(2), 170-183.

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