State law provides that all cash not immediately needed by school districts to finance current operations be forwarded to the counties in which the school districts are located. The law also requires that county treasurers place these resources in a separate fund and invest them on behalf of the school districts. Because Contra County is experiencing financial problems and to provide resources to the county, the county treasurer tells the county administrator that he plans to invest the school district funds in “junk bonds” yielding 9 percent interest. He will credit the “normal” rate of return (5 percent) to the school districts and the remaining 4 percent to the county itself. Explain the position the county administrator should take on the treasurer’s proposal.
Answer to relevant QuestionsA city ordinance provides that “no money shall be spent for any purpose without the prior approval of the city council.” In approving the budget for the year, the council had authorized spending $ 1,300,000 for road ...(Use of funds in governmental accounting) On Election Day, the citizens of a small village voted affirmatively on the following proposition: “To authorize the sale of $ 3,000,000 in bonds for the purpose of constructing a ...Compare the timing of revenue and expense (or expenditure) recognition using the accrual basis of accounting with that using the modified accrual basis of accounting. Which basis of accounting is used in each fund category?During a heated campaign for mayor of Hoschkosh, an unsuccessful candidate said: “I will do away with all the special interests in government. I will abolish all the Special Revenue Funds and merge that money with the ...What is a capital budget? Why should it be prepared for a period greater than one year?
Post your question