Interim Budgetary Comparison Statement

An interim budgetary comparison statement for a governmental fund is found in Illustration

a) Should this statement be prepared on the unit's budgetary basis or on the GAAP basis? Why?

(b) Why are interim budgetary comparison statements important to effective management control and legislative oversight?

NAME OF GOVERNMENTAL UNIT Budgetary Comparison Schedule General Fund (Non-GAAP Budgetary Basis) For the Year Ended December 31, 2020 Budgeted Amounts Variance Actual with Final Amounts Budget (Budgetary Positive Original Final Basis (Negative) Revenues: laxes $ 882,500 $ 882,500 $881,300 $ (1,200) Licenses and permits 125,500 103,000 103,000 Intergovernmental revenues 200,000 186,500 186,500 Charges for services 90,000 90,000 91,000 1,000 Fines and forfeits 32,500 32,500 33,200 700 Miscellaneous revenues 19.500 19,500 19,500 Total revenues 1,350,000 1,314,000 1,314,500 500 Expenditures and encumbrances: General government 129,000 129,000 121,805 7,195 Public safety 277,300 277,300 258.395 18.905 Highways and streets 84,500 85,500 85,400 100 Sanitation 50,000 57,000 56,250 750 Health 47,750 47,750 44,500 3,250 Welfare 51,000 51,000 46,800 4,200 Culture and recreation 44,500 44,500 40,900 3,600 Education 541,450 541,450 509,150 32,300 Total expenditures and encumbrances 1.225,500 1,233,500 1,163,200 70.300 Excess (deficiency) of revenues over expenditures and encumbrances 124,500 30,500 151,300 70,800 Other financing sources (uses): transfers out (74,500) (74,500) (74,500) Net change in fund balance 50,000 6,000 76.800 70,800 Fund balance-beginning 350,000 350.000 350.000 Fund balance-ending $ 400,000 $ 356,000 $426,800 $70,800