Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 12, Problem 19EP
The City of Ashcroft has produced a Service Efforts and Accomplishments report for the past four years in an attempt to answer the question “How are we doing?” for its citizens. Reproduced here is an excerpt from the 2016–2020 SEA report that details library services. The report shows the efforts of library staff to offer more library programs to the increasing population and customer base in the city. Program participation has seen steady increases over the past four years, with some programs so high in demand waiting lists to participate are starting to occur.
Citizen Perceptions
The 2018 community survey reported that 86 percent of city residents rated library services as “good” or “excellent,” only marginally down from 88 percent in 2016. For the variety of materials at the library, 79 percent of citizens rated the variety as “good” or “excellent,” unchanged from 2016.
Library Budget
The owner of a house with a total assessed valuation of $200,000 paid property taxes of $67 in FY 2020 to support the library. Twenty-six percent (26%) of the library’s FY 2020 budget depends upon support from Fairview County in return for services provided to rural Polk County residents. Fairview County’s support is expected to decrease after FY 2020. Options being considered to offset the loss of county funding include allocation of General Fund monies and/or reduction in library services.
Source: SEA reports issued by the City of Ankeny, Iowa.
Required
- a. Which of the performance measures best represents inputs, outputs, and outcomes?
- b. How does the city demonstrate that its financial resources are used efficiently?
- c. How would you address a citizen who feels he or she is not getting his or her money’s worth?
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The City of Jamestown want to improve hikind trails and bike paths for park improvement. The city applies for a grant from state government. On April 1 the city receives a notes that they will be awarded a grant of $420,000 for the program and to be received in two installments on July 1,2015 and July 1,2016. The grant stipulates that $210,000 is for use in each of the city’s fiscal years ending June 30, 2016, and June 30, 2017. During FY 2015, the city expended $90,000 for park improvements from grant resources.
Required:
For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following:
1. April 1, 2015, notification of grant approval.
2. July 1, 2015, receipt of first installment of the grant.
3. During FY 2015 to record expenditures under the grant.
4. July 1, 2016.
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Officials for the City of Artichoke, West Virginia, have recently formed a transit authority to create a public transportation system for the community. These same Officials are now preparing the city's CAFR for the most recent year. The transit authority has already lost a considerable amount of money and the officials have become interested in its reporting and whether it qualifies as a component unit of the city.
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"Changes in Component Units," Government Finance Review, February 2011.
"GASB Issues Guidance on Financial Reporting Entity, Component Units," Accounting Policy & Practice Report, January 7, 2011.
"Financial Reporting for Affiliated Organizations," The Journal of Government Financial Management, Winter 2003.
"How to Implement GASB Statement No. 34," The Journal of Accountancy, November 2001.
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Chapter 12 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 12 - Are governments and not-for-profit organizations...Ch. 12 - What is the difference between two types of...Ch. 12 - Prob. 3QCh. 12 - Robert Bland suggested that tensions may exist...Ch. 12 - Identify some essential components of the annual...Ch. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - What are the three broad categories of service...Ch. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 14CCh. 12 - Budgets of government entities a. Are integrated...Ch. 12 - Which of the following statements regarding...Ch. 12 - Which of the following steps would not usually be...Ch. 12 - The budgeting principle in generally accepted...Ch. 12 - Prob. 16.5EPCh. 12 - An approach to budgeting that requires the very...Ch. 12 - Which of the following does not represent a...Ch. 12 - Prob. 16.8EPCh. 12 - Prob. 16.9EPCh. 12 - Prob. 16.10EPCh. 12 - Prob. 16.11EPCh. 12 - Which of the following is not one of the general...Ch. 12 - Prob. 16.13EPCh. 12 - The police chief of the Town of Meridian submitted...Ch. 12 - The City of Manhattan, Kansas, prepares an annual...Ch. 12 - The City of Ashcroft has produced a Service...Ch. 12 - Prob. 20EPCh. 12 - Prob. 21EPCh. 12 - The U.S. Office of Management and Budget (OMB)...
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