1. Is the information on the balance sheet, activity statement, and cash flow statement independent of one another or connected? Explain each.

2. An essay describing the 6 areas of "POTENTIAL FACTORS THAT COULD CAUSE DETERIORATING FINANCIAL CONDITION" from the Florida General Auditor. Clearly identify all six areas and one or more measures of interest within them. Provide examples or cases to support your answer.You may use your selected city to illustrate points. CITY OF GROVELAND FL https://flauditor.gov/pages/mun_efile%20pages/groveland%20city%20of.htm

3. Based on the Florida Auditor General material, discuss the following. https://flauditor.gov/pages/mun_efile%20pages/groveland%20city%20of.htm

1. Why the state must legally monitor financial condition?

2. What is financial condition?

3. What are data elements, financial indicators, and benchmarks?

4.Section 218.39(5) of the Florida Statutes requires what of independent Florida auditors?Explain any processes.

4. Suppose you live in a rural, bedroom community (primarily residential, with

very little commercial business). Property taxes have not been raised in 45

years, and the community is very politically conservative. The community

prides itself on having one of the lowest property tax rates in the state. Last

spring, the city council members met with city staff to discuss budgetary

needs for the future fiscal year. Once the proposed expenses were summed,

the council had to debate the necessity of raising revenue to maintain the

current demands. After arduous discussion, the body decided to pursue the

process to raise the property tax revenue. The city council and administration

surmised that citizens would want to understand the budget and the perceived

need for the increase. Two open house meetings were held at the local

elementary school. Very few people attended.

Property owners were sent their initial property tax notices, and people

spotted the proposed increase. A group of residents initiated the gathering of

signatures to refer the increase to the voters. As this was an election year for

two council seats, the opposing group added their spokespersons to the running

for those seats. From an administrative and political perspective, chaos

ensued. Name-calling, misinformation, anger, and distrust created a toxic

environment that led to the loss of loyal employees and elected leaders. A

referendum was placed on the ballot and succeeded in stopping the increase

in revenue. In the months following the election, approximately $300,000 in

expenses were cut, as administration and staff took on more work and services

were reduced.

What could the city have done differently or better, in this scenario? Would

small, incremental increases over time have been less controversial? What

ethical dilemmas did city officials face, in terms of building a viable budget

while addressing the demands of the public?

5.

a. What are the major classes of ratio analysis? What can we learn from each class?

b. What are the major elements of financial statement analysis?

c. What types of comparisons should be made with ratios?

d. What are some potential problems with ratios?

6.

a. How does financial condition analysis differ from financial statement analysis?

b. How can we obtain information for financial condition analysis?

c. How could one assess the quality of a government's financial reporting?

d. What general problem must be addressed in doing ratio analysis for governmental financial condition analysis?