Explanations provided by the County for the differences between budget and actual are as follows. Property tax collections are down because the major industry in the community closed and many citizens are currently unemployed. Operating expenses are up because the only bridge over a river bisecting the County sustained damages by an uninsured motorist and had to be repaired immediately. The repair was not budgeted.

Required: Was the County in compliance with budget laws? Did the County accomplish the goal of interperiod equity? Explain your answers in detail. $(8$ points$)$