A political ofﬁcial boasts that the year-end excess of revenues over expenditures was signiﬁcantly greater than was budgeted. Are ‘‘favorable’’ budget variances necessarily a sign of efﬁcient and effective governmental management? Explain.
Answer to relevant QuestionsWhat are allotments? What purpose do they serve?What is the purpose and effect of reinstating year-end encumbrances on the books at the beginning of the following year?London Township began Year 1 with a balance of $10 million in its bridge repair fund, a capital projects fund. The fund balance is classiﬁed as restricted.At the start of the year, the governing council appropriated $6 ...The following information was drawn from a county’s general fund budgets and accounts for a particular year (in millions):• For purposes of budgeting, the county recognizes encumbrances as the equivalent of expenditures ...The GASB requires a government to prepare budgetary comparisons for its general fund and major special revenue funds that have a legally adopted annual budget. The city for which you work does not have a legally adopted ...
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