Question: Reginald Canary the mayor of the City of Bloomerville is
Reginald Canary, the mayor of the City of Bloomerville, is trying to locate available resources in the governmental-type funds to help “bail out” the General Fund. The General Fund expenditures currently exceed budgetary amounts by $ 10 million with 2 months remaining in the fiscal year. Canary feels some unused resources in a Capital Projects Fund or a Debt Service Fund could be transferred to the General Fund to alleviate the impending budget deficit. Each of these funds has a fund balance of at least $ 50 million. If Canary cannot locate the needed resources, he will have to borrow money using tax anticipation notes based on an emergency tax levy. This prospect is a major problem for him because the current year is an election year. Is Canary’s plan ethical? If you were the chief financial officer of Bloomerville, how would you respond to Canary? How could such a situation be prevented?
Answer to relevant QuestionsThe City of New Falls is planning to acquire furniture and fixtures for the mayor’s office and the council chambers. One of the council members, Ryan Cannedy, sent you a memo asking whether a Capital Projects Fund is ...Compare and contrast the methods used to control expenditures in the General Fund and in Debt Service Funds. Be sure to explain the reasons for any differences.Following is a trial balance for the Tilker Falls Boat Marina Capital Projects Fund and the trans-actions that relate to the 2012– 2013 fiscal year. Prepare all the journal entries necessary to record these transactions ...On January 1, 2012, the chief operating officer of New Belgium, Jeff Stambaugh, signed a non-cancellable lease for street equipment. The lease was for 10 years, the economic life of the property. The fair market value of the ...What are revenue bonds? How do they differ from general obligation bonds?
Post your question