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Solution Page Images for Required Trial Balances, financial statements and Schedules, and Reports and Analyses To Accompany
Accounting for Governmental and Nonprofit Entities, 15e
Earl R. Wilson, Jacqueline L. Reck, and Susan C. Kattelus
City of Bingham General Fund Post-Closing Trial Balance For year 2010 Cash Taxes Receivable-Delinquent Estimated Uncollectible Delinquent Taxes Interest and Penalties Receivable on Taxes Estimated Uncollectible Interest and Penalties Vouchers Payable Due to Other Funds Fund Balance Totals for all accounts Debits $70,000 470,000 23,690 1,304 354,000 13,000 152,886 $563,690 Credits
888 $741.020 52.396 $741.020 351.518 Credits $203.056 245.574 57.City of Bingham General Fund Post-Closing Trial Balance For year 2011 Cash Taxes Receivable-Delinquent Estimated Uncollectible Delinquent Taxes Interest and Penalties Receivable on Taxes Estimated Uncollectible Interest and Penalties Vouchers Payable Due to Other Funds Reserve for Encumbrances Fund Balance Totals for all accounts Debits $444.518 .442 10.640 40.000 78.
990 577.615 12.000 (1.800 12.000 735.000 1.000 112.000 222.400 27.349 3.645 5.000 3.094 4.955 1.000 578.700 ($12.640.000 251.700) 500.080 1.675 652 .000.106 957.485 713.200 (1.City of Bingham General Fund Operating Statement Account Balances For year 2011 Acct 3/4020 Acct 3/4030 Acct 3/4040 Acct 3/4050 Acct 3/4060 Acct 3/4070 Acct 3/4080 Acct 3/4090 Taxes-Real Property Taxes-Sales Interest and Penalties on Taxes Licenses and Permits Fines and Forfeits Intergovernmental Revenue Charges for Services Miscellaneous Revenues Estimated Unrealized Revenues Dr(Cr) Revenues Cr(Dr) Balance Dr(Cr) $6.000 975.000 110.811 10.000) 44.012.348 Appropriations Cr(Dr) $1.200) 703.345.900 9.462.000 Expenditures Dr(Cr) $1.000 0 210.400) 110.000 $6.000 710.700 (7.630.309.000 Available Balance Cr(Dr) $6.700) 250.500 (500) Acct 5/6/7020 Acct 5/6/7030 Acct 5/6/7060 Acct 5/6/7070 Acct 5/6/7080 Acct 5/6/7100 General Government Public Safety Public Works Health and Welfare Parks and Recreation Miscellaneous Encumbrances Dr(Cr) $2.429.000 500.000 42.400 (12.840 24.010 1.245 110.
396 52.4.548 203.574 41.000 97.868 $527.888 429.020 $444. 2011 Assets Cash Taxes receivabledelinquent Less: Estimated uncollectible delinquent taxes Interest and penalties receivable on taxes Less: Estimated uncollectible interest and penalties Total Assets Liabilities and Fund Balances Liabilities: Vouchers payable Due to other funds Total Liabilities Fund Balances: Reserve for Encumbrances Fund Balance Total Fund Balances Total Liabilities and Fund Balances 78.908 $527.056 19 .Balance Sheet As of December 31.020 351.442 41.624 $245.548 $57.b CITY OF BINGHAM General Fund .640 40.640 10.
488 277.400 110.106 957.010 578.630.245 110.510 20 .500 8.955 1.908 $6.c CITY OF BINGHAM General Fund Statement of Revenues.012.485 713.886 $ 429.200 710. 2011 Revenues: Property taxes Sales taxes Interest and penalties on taxes Licenses and permits Fines and forfeits Intergovernmental revenues Charges for services Miscellaneous revenues Total Revenues Expenditures: General government Public safety Public works Health and welfare Parks and recreation Miscellaneous appropriations Total Expenditures Excess of Revenues over Expenditures Other Financing Sources (Uses) Increase in Fund Balances for Year Fund Balances. Expenditures. and Changes in Fund Balances For the Year Ended December 31.000 222. 2011 1.427.700 251.4.429.349 3.309.022 -0277. 2010 Fund Balances. December 31.348 8.700 500.000 42.150.022 152. December 31.
000 Add: Increase in Reserve for Encumbrances -0Change in Fund Balances for Year 284.886 Fund Balances. 2011 $436.500 8.000 8.000 965.000 (1.462.269. 21 .002 78.000 Fund Balances.094) ( 4.510 Expenditures and Encumbrances: General government Public safety Public works Health and welfare Parks and recreation Miscellaneous appropriations Total Expenditures and Encumbrances 1.811) (10.700 1.000 8.000 44.4.000 3.000 3.325 111. December 31.640.000 250.012.002 78.700 251.990) 1.d CITY OF BINGHAM General Fund Statement of Revenues.400 110. 2010 152.510.510 Actual Over (Under) Final Budget $ 12.000 1.000.645) ( 5.908 ( 6.000 500.020 277.000 112.000 1.010 578.150.000 500.022 -0$152.000 770.000.450. and Changes in Fund Balances—Budget and Actual (non-GAAP basis) For the Year Ended December 31.700 -012.000 130.000 210.508 199.886 $ 429.675) ( 652) (40.906 970. Expenditures*.000 $6.000 44.000 703.886 *Including encumbrances of FY2011 appropriation outstanding as of December 31.000 222.615) (12.000 975.189 3.000 -0125.000 703.385 722.434.325.633.355 1.886 $ 277.427.000 Actual $6.022 152.228.000 125.200 710.456.400 500 33. 2011 Budgeted Amounts Original Final Revenues: Property taxes Sales taxes Interest and penalties on taxes Licenses and permits Fines and forfeits Intergovernmental revenues Charges for services Miscellaneous revenues Total Revenues $6.886 1.000 735. December 31.334.394.020 152.000 152.345.000 42.000 8.200 7.700 500.000 577.492) 74.022 Excess of Revenues over Expenditures 284.000 8.000 150.000 577.000 210.000 110.348 8.000 1. 2011.000 250.
000 .000.City of Bingham City Hall Annex Construction Fund Pre-Closing Trial Balance For year 2011 Debits OFS .000.Proceeds of Bonds Exp.000 $5.980.000 $4.000.800 $5.Interfund Transfers Out Totals for all accounts Credits $5.200 19. .Construction Expenditures OFU .
c.200) 5.5. 2010 Fund Balance.000 (19. December 31. CITY OF BINGHAM City Hall Annex Construction Fund Statement of Revenues.980.980. Expenditures and Changes in Fund Balance For the Year Ended December 31. 2011 54 .800) -0-0$ -0- Revenues Expenditures: Construction Expenditures Excess of Revenues over (under) Expenditures Other Financing Sources/(Uses): Proceeds of Bonds Interfund Transfers Out Excess of Revenues and Other Sources over (under) Expenditures and Other Financing Uses Fund Balance.200 (4. 2011 $ -04.000. December 31.
000 7.636.600 $1.529.032.636.000 .315 167.720 $1.City of Bingham Debt Service Fund Post-Closing Trial Balance For year 2011 Cash Taxes Receivable .000 1.285 880 430.600 Credits $106.Delinquent Estimated Uncollectible Delinquent Taxes Interest and Penalties Receivable on Taxes Estimated Uncollectible Interest and Penalties Investments – Temporary Fund Balance Totals for all accounts Debits $1.
d City of Bingham Debt Service Fund Balance Sheet As of December 31.529.000 7.032.6.315 430.000 64 .720 -01.000 106.529.000 $1.405 $1.529.720 $1. 2011 Assets Cash Investments—temporary Taxes receivable—delinquent Less: Estimated uncollectible Delinquent Taxes Interest and penalties receivable Less: Estimated uncollectible Interest and Penalties Total assets Liabilities Fund Balance Total Liabilities and Fund Balance $167.285 880 6.720 61.
000 1.Taxes Est.400 .000 600.000 100.800 1.000 1.800 1.000 32.Investment Income Other Financing Sources-Premium on Bonds Other Financing Sources-Interfund Transfers In Appropriations Expenditures – Bond Principal Expenditures . Revenue .315 167.285 880 430.Interest and Penalties on Taxes Est.000 19.Investment Income Estimated Other Financing Sources-Premium on Bonds Estimated Other Financing Sources-Interfund Transfers In Revenue .Taxes Revenue .022.080 21.000 7.000 19.000 $106.City of Bingham Debt Service Fund Pre-Closing Trial Balance For year 2011 Debits Cash Taxes Receivable .840 531.022.800.800.000 $5.800 1.000 7.427. Revenue .014.400 Credits $5. Revenue .Delinquent Estimated Uncollectible Delinquent Taxes Interest and Penalties Receivable on Taxes Estimated Uncollectible Interest and Penalties Investments – Temporary Fund Balance Budgetary Fund Balance Est.Interest and Penalties on Taxes Revenue .Bond Interest Totals for all accounts $1.032.000 100.000 827.
Expenditures. 2010 Fund balance. 2011 Revenues: Property taxes Interest on investments Interest and penalties on taxes Total revenues Expenditures: Interest on bonds Principal of matured bonds Total expenditures Excess of revenues over expenditures Other Financing Sources: Premium on bonds sold Interfund transfers in Excess of revenues and other financing sources over expenditures Fund balance.e City of Bingham Debt Service Fund Statement of Revenues.800.880 1.000 1. and Changes in Fund Balance For the Year Ended December 31.800 827.800 119.000 21.720 100.529.000 600.822.000 1.080 1.427.080 $1. December 31. 2011 514.080 65 .000 395.000 19. December 31.6.014.840 $1.
014.800 1.800 100.000 600.000 21.427.000 -0100.839.6.720 (16.000) Final Budget Actual Over (Under) Budget___ Actual 66 .822.920) 100.920) (11.080 1.000 827. 2011 Original Budget Revenues: Property taxes Interest on investments Interest and penalties on taxes Total revenues Expenditures: Interest on bonds payable Principal of matured bonds Total expenditures Excess of revenues over expenditures Other Financing Sources: Premium on bonds sold Interfund transfer in Excess of revenues and other financing sources over expenditures Fund Balance.000 7. December 31.000 32.014.f City of Bingham Debt Service Fund Statement of Revenues.000 412.800 -0-0827.840 531.000 1.080 -0-0-0(16.000 600.920) (16.529. 2011 512.840 $1.000 1.000 1.800. 2010 Fund Balance.000 1.000 7.839.000 19.427.000 395.880 1.800.840 $1.000 1.800. December 31.080 $ -0(5.000 827.000 $1.000 32.546.000 600.000 $1.000 412.427.640 514. and Changes in Fund BalanceBudget and Actual For the Year Ended December 31.000 1.000 1.014.920) $1.840 $1.526. Expenditures.000 19.920) -0$(16.
400.000.600.000.000 40.000 $23.000 $11.400.000 5.g CITY OF BINGHAM Computation of Legal Debt Margin December 31.6.000 16.000. 2011 $400.000 Assessed valuation of taxable property Legal debt limit (10% of assessed valuation) Debt outstanding subject to the legal limit: 6% general obligation serial bonds 5% general obligation serial bonds Total debt outstanding subject to limit Legal debt margin 67 .
470.680 Credits $4.146 13.Customer Deposits Customer Accounts Receivable Accumulated Provision for Uncollectible Accounts Inventory of Supplies Due from Other Funds Utility Plant in Service Accumulated Depreciation – Utility Plant Construction Work in Progress Vouchers Payable Customer Deposits Accrued Interest Payable 6% Revenue Bonds Payable Unamortized Bond Discounts on Revenue Bonds Payable Net Assets .720 .773.390 4.City of Bingham Water Utility Fund Post-Closing Trial Balance For year 2010 Cash Restricted Cash .864.200 160.680 $20.000 65.100 14.400 72.200 1.200 434.904 57.420 57. Net of related Debt Net Assets .712 41.864.250 $20.Unrestricted Totals for all accounts Debits $284.011.Invested in Capital Assets.000.000 19.189.440 94.278 1.
100 14.300 94.820 101.020 58.546 40.894 .Unrestricted Totals for all accounts $985.013. Net of related Debt Net Assets .894 $22.168 58.470.Invested in Capital Assets.944 792.264 $22.902.460 199.286 664.990 4.391.000 19.013.Customer Deposits Customer Accounts Receivable Accumulated Provision for Uncollectible Accounts Inventory of Supplies Due from Other Funds Utility Plant in Service Accumulated Depreciation – Utility Plant Construction Work in Progress Vouchers Payable Customer Deposits Accrued Interest Payable 6% Revenue Bonds Payable Unamortized Bond Discounts on Revenue Bonds Payable Net Assets .460 434.000 61.940 1.City of Bingham Water Utility Fund Post-Closing Trial Balance For year 2011 Cash Restricted Cash .767.490 $5.
384 58.e CITY OF BINGHAM Water Utility Fund Statement of Net Assets As of December 31. 2011 ASSETS: Current Assets: Cash Due from other funds Customer accounts receivable Less: Accumulated provision uncollectible accounts Inventory of supplies Total Current Assets Restricted Assets: Cash Utility Plant: Utility plant in service Less: Accumulated provision for depreciation Construction work in progress Total Utility Plant Total Assets LIABILITIES: Current and Accrued Liabilities: Vouchers payable Accrued interest payable Total Current and Accrued Liabilities Liabilities Payable from Restricted Assets: Customer deposits Long-Term Debt: 6% Revenue bonds Less: Unamortized bond discount Total Liabilities NET ASSETS: Invested in capital assets.670 101.560.286 15.7.000 75 .490 5. net of related debt Unrestricted Total Net Assets 1.168 40.000 61.902.320.100 528.060 14.554.004 17.704 664.208 14.546 1.120 58.020 434.640 94.940 14.391.408.460 19.460 $ 985.994.470.848 $ 199.944 792.767.820 193.990 4.300 16.176.511.264 $ 2.
490 Accumulated Provision for Uncollectible Accounts $5.400 Depreciation Expense 380.800 Interest on Long-Term Debt 842.470.286 Construction Work in Progress 664.460 Totals for all accounts $24.700 Operation Expense 826.348 .000 Unamortized Bond Discounts on Revenue Bonds Payable 61.786 Maintenance Expense 268.168 Restricted Cash .902.300 Vouchers Payable 94.Unrestricted 41.City of Bingham Water Utility Fund Pre-Closing Trial Balance For year 2011 Debits Credits Cash $985.066.100 6% Revenue Bonds Payable 14.008 Uncollectible Accounts 3.000 Utility Plant in Service 19.546 Due from Other Funds 40.773.020 Customer Deposits 58.712 Net Assets .460 Accrued Interest Payable 434.820 Inventory of Supplies 101.940 Net Assets .250 Sales of Water 3.990 Accumulated Depreciation – Utility Plant 4.335.348 $24.335.460 Customer Accounts Receivable 199.Invested in Capital Assets.391. Net of related Debt 1.Customer Deposits 58.
475.194 1.460 745.e CITY OF BINGHAM Water Utility Fund Statement of Revenues. and Changes in Net Assets For the Year Ended December 31. December 31.7.706 $3.560.208 $ 826.062.814.246 1. 2011 Operating Revenues: Sales of water (net of provision for uncollectible accounts of $3.800) Operating Expenses: Operation expense Maintenance expense Depreciation expense Total Operating Expense Operating Income Nonoperating Revenue and Expense: Interest on long-term debt Change in Net Assets Net Assets.962 $2.900 76 .587. Expenses. 2010 Net Assets. December 31.786 268.400 380. 2011 842.008 1.
460 $1.500) (868.700) 701.994.628 (348.104 Beginning of Year (1.918. 2011 Cash flows from operating activities: Cash received from customers and City Cash provided by customer deposits (see Note A) Cash payments to employees for services(less: $70.930) (332.200) (746.854 $2.800) $1. 2011 Reconciliation of cash and cash equivalents to the balance sheet: End of Year Cash and cash equivalents in current and accrued assets Restricted cash and cash equivalents Total cash and cash equivalents $ 985.200 $342.043.104 $1.500 for construction) Cash payments to suppliers Net cash provided by operating activities Cash flows from capital and related financing activities: Construction of capital assets Interest paid on long-term debt Net cash used for capital and related financing activities Net increase in cash and cash equivalents Cash and cash equivalents. 2010 Cash and cash equivalents.7.f CITY OF BINGHAM Water Utility Fund Statement of Cash Flows For Year Ended December 31.224 3.628 $284.904 57. December 31.216.168 58.524 342.100 77 . December 31.043.
net Increase in inventory of supplies Increase in due from other funds Increase in accounts payable Increase in customer deposits Net adjustments Net cash provided by operating activities $ 380.904.400) (27.587.260 330.7.950) (7. $3. minus deposits refunded to customers.008 (37.f (Cont’d) Reconciliation of operating income to net cash provided by operating activities: Operating income Adjustments: Depreciation Increase in accounts receivable.050. 78 . deposits received. $6.000) 21.918.706 Note A: Entry 7-b-13.518 $1.224 $1.600 1.
City of Bingham Employees' Retirement Fund Post-Closing Trial Balance For year 2010 Cash Investments Interest Receivable on Investments Accounts Payable and Accrued Expenses Net Assets Held in Trust for Pension Benefits Totals for all accounts Debits $33.096.003.800 $3.072.096.000 $3.800 $3.440 3.360 60.000 Credits $24.800 .
000 130.072.Annuity Benefits Totals for all accounts Debits $39.Investment Income Additions .Employer Contributions Additions .200 $3.358.762.000 184.760 64.000 3.762.800 363.000 $3.200 .City of Bingham Employees' Retirement Fund Pre-Closing Trial Balance For year 2011 Cash Investments Interest Receivable on Investments Accounts Payable and Accrued Expenses Net Assets Held in Trust for Pension Benefits Additions .400 300.440 3.000 Credits $12.Change in Fair Value of Investments Deductions .
200 $3.000 Credits $12.440 3.000 3.358.760 64.462.200 .450.City of Bingham Employees' Retirement Fund Post-Closing Trial Balance For year 2011 Cash Investments Interest Receivable on Investments Accounts Payable and Accrued Expenses Net Assets Held in Trust for Pension Benefits Totals for all accounts Debits $39.462.200 $3.
400 300.200 12.400 3.d CITY OF BINGHAM Employees' Retirement Fund Statement of Changes in Plan Net Assets For the Year Ended December 31. 2011 Assets: Cash Accrued interest receivable Investments.000 184.462.200 Additions: Employer contributions Investment income: Interest Increase in fair value of investments Total investment income Total additions Deductions: Annuity benefits Net increase in plan net assets Net assets.c CITY OF BINGHAM Employees' Retirement Fund Statement of Plan Net Assets As of December 31.000 130.8.400 677. at fair value Total Assets Liabilities: Accounts payable and accrued expenses Net assets held in trust for pension benefits 8. December 31.800 $3. 2011 $ 363.450. December 31.072.400 314.000 377.200 $ 39.358. 2011 81 .440 64.450.000 $3.000 3. 2010 Net assets.760 3.
840 Net Assets .277. .874.Delinquent 412.General Govt.Property Taxes 7.000 Improvements other than Buildings 9.Temporary 430.350.812.476.000.000 Vouchers Payable 57.Interest on Long-Term Debt 929. Government-Wide Level Pre-Closing Trial Balance For year 2011 Debits Credits Cash $1.371.Interest on Tax Anticipation Notes 9. .City of Bingham Governmental Activities. .000 General Revenues .Invested in Capital Assets.106 Exp.000 Current Portion of Long Term Debt 850. .000 5% Serial Bonds Payable 4.589.033.090 General Revenues . .Equipment 5. .560.640 Accrued Interest Payable on Long-term Debt 467.000 Net Assets .200 Accumulated Depreciation .500 General Revenues .000 Accumulated Depreciation .Operating Grants and Contributions 500.909.Parks and Rec.Improvements other than Buildings 2.750.085. .000 Internal Payables to Business-Type Activities 40.371 Taxes Receivable .Public Safety .000 Accumulated Depreciation .000 Program Revenues .920 .485 Exp.Restricted for Debt Service 1.190.General Government 2. 1.000 Exp.197 Exp.280.860.Buildings 2.920 $75.600 Program Revenues .484.Infrastructure 11.000 Exp.098. Net of Related Debt 25.Health and Welfare 1.700 General Revenues .000 Net Assets .Interest and Penalties on Taxes 43.700 General Revenues .000 Unamortized Premium on Serial Bonds Payable 95.Charges for Services 425.Investment Earnings 21.General Government .Unrestricted 207.000 Infrastructure 29.Public Works 1.000 6% Serial Bonds Payable 10.396 Interest and Penalties Receivable on Taxes 59. .Sales 251.Taxes .500 Totals for all accounts $75.532.014.000 Buildings 13.800.046.454 Investments .Charges for Services 1.Public Safety 4.Miscellaneous 110.020 Estimated Uncollectible Delinquent Taxes $309.000 Land 1.955 Exp.000 Equipment 8.000 Accumulated Depreciation .114 Program Revenues .727 Estimated Uncollectible Interest and Penalties 11.874.245 Exp.
Temporary 430.Delinquent 412.860.000 Current Portion of Long Term Debt 850.092 Totals for all accounts $63.Infrastructure 11.000 Vouchers Payable 57.529.371 Taxes Receivable .396 Interest and Penalties Receivable on Taxes 59.000 Net Assets .476.000 Equipment 8.454 Investments .410 $63.410 .200 Net Assets .727 Estimated Uncollectible Interest and Penalties 11.000 Buildings 13.City of Bingham Governmental Activities.Unrestricted 37.750. Net of Related Debt 22.585.000 Infrastructure 29.000 5% Serial Bonds Payable 4.Invested in Capital Assets.000 Accumulated Depreciation .000 Accumulated Depreciation .000 Accumulated Depreciation .000 Internal Payables to Business-Type Activities 40.585.Buildings 2.200 Accumulated Depreciation .350.560.640 Accrued Interest Payable on Long-term Debt 467.491.000.000 Unamortized Premium on Serial Bonds Payable 95.190.000 Land 1.Restricted for Debt Service 1.484.000 Improvements other than Buildings 9.Equipment 5.020 Estimated Uncollectible Delinquent Taxes $309.Improvements other than Buildings 2.532.720 Net Assets .800.280.098.000 6% Serial Bonds Payable 10. Government-Wide Level Post-Closing Trial Balance For year 2011 Debits Credits Cash $1.
476.060 32.848 $ 2.100 58.897 (40.460 430.060 14.468 $ 985.172 $ 26.208 24.014.767.000 30.162.645.036 57.003.560.092) $23.544.259.408.986.000 38.264 $ 2.9.529.640 467.316 97 .460 850.546 58.491.460 14.000) 430.461.019.983.000 55.000 101. net of related debt Restricted for: Debt service Unrestricted Total Net Assets 22.d CITY OF BINGHAM Statement of Net Assets As of December 31.053.460 16.204 58.546 58.168 193. 2011 Governmental Activities Business-type Activities Total Assets Cash and cash equivalents Receivables (net of estimated uncollectibles) Internal balances Inventories Restricted assets: cash Investments Capital assets (net of accumulated depreciation) Total Assets Liabilities Vouchers payable Accrued interest payable Customer deposits Current portion of long-term debt Bonds payable(net of discounts and premiums) Total Liabilities Net Assets Invested in capital assets.828 1.720 755.529.200 1.371 150.144 1.020 434.176.670 40.280 $ 1.000 15.539 344.200 41.567 0 101.558.004 17.100 58.000 17.994.660 901.640 94.000 850.944 792.720 (37.640 151.554.
000 Net (Expense) Revenue and Changes in Net Assets Governmental Business-type Total Activities Activities Governmental activities: General government Public safety Public works Health and welfare Parks and recreation Interest expense Total Business-type activities: Water utility Total government $ 2.246 1.597) (4.853.238.962 $ 2.108.909.106 1.454 3.000 General revenues: Property taxes Sales taxes Interest and penalties Investment earnings Miscellaneous Total general revenues Decrease in net assets Net assets.164. December 22.214.171.1248) 25.700 251.597) (4. 2010 Net assets.033.578.085. 2011 21.500 8.440.652) 27.290 (1.726 $ 23.321.362.869.812.208 98 .090 $ (785.d CITY OF BINGHAM Statement of Activities For the year ended December 31.000 $ 500.245) (938.700 251.245) (938.371. 2011 Program Revenues Functions/Programs Expenses Charges for services Operating Capital grants and Grants and contributions Contributions $ 500.955 1.164.828 745.246 (9.000 110.000 110.124.589.000 (785.106) (1.544.500 8.066.500) (10.255) (1.812.983.700 $ ______ 1.033.814.000 43.277.197 4.238.485 1.277.942 $4.909.036 2.668.909.485) (1.000 43.942) 7.500) (10.245 938.277. December 31.300 _______ 500.488 $1.600 425.246 7.188) 745.560.090 21.9.290 (1.700 $14.511.033.500 12.188) 745.485) (1.688 $26.106) (1.255) (1.
000 97.640 40.640 78.720 $ 1. Long-term liabilities are not due and payable and therefore are not reported in the funds.529.628 Amounts reported for governmental activities in the statement of net assets differ from the total fund balances reported in this statement because: Capital assets used in governmental activities.986.640 40.529. net of 38.000) Net assets of governmental activities $23.720 1.720 1.268 Reconciliation of governmental funds fund balances to governmental activities net assets at the government-wide level Total governmental funds fund balances $ 1.371 430.828 Note: The City Hall Annex Construction Fund is excluded from the balance sheet since the fund was closed prior to year-end.628 $ 2.720 Total Governmental Funds $ 1.268 $ 57.d CITY OF BINGHAM Balance Sheet Governmental Funds As of December 31.548 Debt Service Fund $1.476. 2011 General Fund ASSETS Cash and cash equivalents Investments Receivables (net) Total assets LIABILITIES AND FUND BALANCES Liabilities: Vouchers payable Due to other funds Total liabilities Fund balances: Reserved for Encumbrances Unreserved.200 depreciation. (16. 99 .959.495.032.959.020 351.000) Accrued interest payable are not a liability of the funds (467.000 67. reported in: General fund Debt service funds Total fund balances Total liabilities and fund balances $ 444.983.529.897 $ 2.000 97.888 _______ 429.548 1.057.405 $ 1.057.492 $ 527.056 83.9.529.888 1.315 430.908 $ 527.720 $ 57.640 78.529. are not reported in the funds.000 150.020 351.
427.348 Current: Interest December For the YearAnd Changes Expenditures Ended StatementTaxes of Governmental Fund 2011 Revenues.700 222.429.106 $1.090 827.510 222.200 43.700 110.700 1.309.488 710.590 Service Fund 1.309.400 $ 21.245 957.000 1.249 8. Balances CITY OF BINGHAM City Hall 21.688 600.800.245 3.200 8.150. in Funds General government 31.500 710.080 1.000 578.955 957.700 $6.812.485 4.980.012.200 110.955 Totals .080000 -010.429.000 110.d Fund Debt Construction3.000 100 .500 500.980.200 1.000 578.348 110.000 1.980.200 251.000 600.485 4.822.427.000 827.349 713.9.010 1.106 251.630.000 42.000 14.400 500.557. 7.349 713.630.000 4.
800 514.014. December 31.200) 5.800) 4.000.628 Fund balances. Expenditures And Changes in Fund BalancesGovernmental Funds For the Fiscal Year Ended December 31.d Cont’d.908 101 .000 100.098) 5.000 ______-05. 2010 277.886 Totals (4.080 126.96.36.1990 119.726 $ 1.880 1.022 ________ ________ 277. December 31.000 791.840 $1.308.100.000 19.720 General Fund Excess (deficiency) of revenues over expenditures Proceeds of tax supported bonds Premium on Bonds Sold Interfund transfers in (out) Total other financing sources (uses) Net change in fund balances Fund balances. 2011 $ 429.000.200 0 0 $ 0 Debt Service Fund 395.529.000 (19.980.959. CITY OF BINGHAM Statement of Revenues.902 1.022 152. 2011 Capital Projects Fund (4.980.
869. the cost of these assets is allocated over their estimated useful lives as depreciation expense. interest expense exceeded interest expenditures by $102. in the statement of activities. but the repayment reduces long-term liabilities in the statement of net assets. In addition.495.898) 102 .9. However. Change in net assets of governmental activities 1. This is the amount by which capital outlays exceeded depreciation in the current period.000) ($1. amortization of premium of $5. On the accrual basis.200 $ 791. Expenditures And Changes in Fund BalancesGovernmental Funds to the Statement of Activities For the Year Ended December 31.000) (107.902 (4. Bond proceeds provide current financial resources to governmental funds. Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. 2011 Net changes in fund balances – total governmental funds Amounts reported for the governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures.000 for the year.940.000 was reported in the statement of activities. CITY OF BINGHAM Reconciliation of the Statement of Revenues.d Cont’d. Repayment of bond principal is an expenditure in the governmental funds. but issuing debt increases long-term liabilities in the statement of net assets.
320.902.286) 664.560.208 103 . 2011 Water Utility Fund ASSETS Current assets: Cash and cash equivalents Customer accounts receivables.264 $2.767.670 40.460 19.120 58.460 14.546 1.060 14. net of discount Total Liabilities NET ASSETS Invested in capital assets.9.d Cont’d.100 528.168 193.391.994.990 (4.944 792.640 1.384 58.004 17. net Internal receivables Inventories Total current assets Noncurrent assets: Restricted cash and cash equivalents Capital assets: Utility plant in service Less: accumulated depreciation Construction work in progress Total capital assets Total Assets LIABILITIES Current liabilities: Accounts payable Accrued interest payable Total current liabilities Noncurrent liabilities: Customer deposits Advance from General Fund 6% revenue bonds payable. net of related debt Unrestricted Total Net Assets $ 985.300 16.554.020 434.408.000 101. CITY OF BINGHAM Statement of Net Assets – Proprietary Funds As of December 31.176.848 94.
814.208 104 . 2010 Net assets – December 31.9. and Changes in Proprietary Net Assets—Proprietary Funds For the Year Ended December 31.062.475.587.460) 745. net of amortization Change in net assets Net assets – December 31.962 $2.786 268.560. 2011 Operating revenues: Sales of water (Net of provision for Uncollectible accounts of $3.d Cont’d.400 380.900 826. Expenses. CITY OF BINGHAM Combined Statement of Revenues.246 1.194 1.008 1. 2011 $3.706 (842.800) Operating expenses: Operation expense Maintenance expense Depreciation expense Total operating expenses Operating income Other income and deductions: Interest expense.
2011 $2.700) 701.706 380.600 1.524 342.000) 21.008 (37.854 (746.628 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Water Utility Fund $1.104 $1.400) (27. CITY OF BINGHAM Proprietary Funds Statement of Cash Flows For Year Ended December 31.260 $1.d.587. December 31.100 3.9.216. 2011 Water Utility Fund Cash flows from operating activities: Cash received from customers and City Cash provided by customers’ deposits Cash paid to employees Cash paid to suppliers Net cash provided by operating activities Cash flows from capital and related financing activities: Construction of capital assets Interest paid on long-term debt Net cash used for capital and related financing activities Net increase in cash Cash and cash equivalents. 2010 Cash and cash equivalents.224 (348. Cont’d.043.800) 1. December 31. net Increase in inventory of supplies Increase in due from other funds Increase in accounts payable Increase in customer deposits Net cash provided by operating activities 105 .930) (332.224 Operating Income Adjustments: Depreciation Expense Increase in receivables.918.950) (7.500) (868.994.918.200) (1.
d Cont’d.400 3.000 314.072.450. CITY OF BINGHAM Statement of Fiduciary Net Assets For Year Ended December 31.358.200 CITY OF BINGHAM Statement of Changes in Fiduciary Net Assets For Year Ended December 31.400 184. at fair value Total Assets LIABILITIES Accounts payable and accrued expenses NET ASSETS Held in trust for pension benefits $ 39.000 3. 2011 $ 363. 2011 Employees’ Retirement Plan Additions: Employer contributions Investment earnings: Net increase in fair value of investments Investment income Total investment earnings Total additions Deductions: Annuity benefits Change in net assets Net assets. 2010 Net assets.000 377.760 3. December 31. December 31.800 $3.400 677.450.400 300.200 12.9.000 130. 2011 Employees’ Retirement Plan ASSETS Cash and cash equivalents Interest receivable Investments.440 64.000 $3.200 106 .462.
056 $26.000 $7.386 Note (d) .003.011.688 $12.455.249.321.640 $1.057.000 See Note (d) $17.668.019.254.427. Calculation of Crawford Performeter ratios: (Values of ratios are rounded) Performance Category Financial Position Same Same Same Same Same Same Financial Performance Same Same Same Same Financial Capability Same Same Same Same Same Performance Measure Unrestricted net assets General Fund budgetary fund balance Capital asset Condition Pension plan funding Debt to assets Current ratio Quick ratio Change in net assets Interperiod equity Sales tax growth BTA self-sufficiency Debt service coverage Revenue dispersion Debt service load Financing margin— bonded debt per capita Financing margin— legal debt limit Financing margin— property taxes per capita Financing margin— sales tax rate Value of Ratio Numerator ($37.640 $2.Chapter 10 Considerable variation in the content of the financial analysis is to be expected since the analysis of a City’s financial information is not an exact science.000 See Note (r) -(.321 7.652 .590 See Note (j) $3.127 $329.468 $1.454 0. the somewhat limited financial analysis we provide here should not be construed as a template by which you should judge your students’ analyses.183 .249.700 $10.600 50.427.90 .412 $156.042 .590 $2. a. particularly since time series data for multiple years are unavailable.004) .000 $40.184.590 $8.036 $10. government-wide ratios use governmental activities data.544.812.000 $16.495.495. 107 .846 Note (j) 1.300 $1.066.25 Note (r) Notes: Unless indicated otherwise.700 See Note (r) (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) Denominator $10.314 -$1.119.640 $27.000.000 $10. Thus.414.196 .427.000 50.590 $11.000 $188.8.131.524.888 $22. Moreover.510 $57. the lack of demographic or economic data about the City of Bingham essentially precludes a complete analysis.249.415 1.092) $351.488 See Note (j) $2. Some students may attempt to extrapolate beyond what can reasonably be supported by the information in the problem.100 See Note (d) $41.268 $444.454 $1.
6 of instructions.640 vouchers payable + $40. (k) Service charge revenues. (e) Total GA liabilities / total GA assets (Source: GW statement of net assets) (f) Current assets ($1. business-type activities / total expenses of business-type activities. governmental activities (Source: GW statement of activities) (j) Sales tax growth cannot be calculated because sales tax information for FY 2010 was not provided. (Sources: GW statement of activities) (l) net revenues. end of year minus total net assets.(a) Unrestricted net assets / Total governmental activities revenue (Source: GW financial statements) (b) Unreserved General Fund fund balance / Total GF revenues (Source: Governmental fund financial statements) (c) Accumulated depreciation / Average cost of depreciable assets (Sources: December 31.000 current portion of long-term debt) (Sources: 12-31-2011 pre-closing trial balance. and changes in fund balances. program revenues) / total revenues. GW statement of net assets) (d) Fair value of plan assets / actuarial accrued liability. governmental activities / total expenditures for principal and interest of general long-term debt (Source: GW statement of activities and governmental funds statement of revenues. GW statement of net assets) (g) Unrestricted cash in the General Fund / current liabilities (Sources: Governmental funds balance sheet. expenditures. this ratio cannot be calculated.000 interest payable + $850. and changes in fund balances). governmental activities (Source: GW statement of activities) (n) Total expenditures for principal and interest on general long-term debt / total noncapital cash outlays.000 internal balances payable + $467. 2010 trial balance from p.371 cash and cash equivalents + $150.. governmental activities (Sources: Governmental funds statement of revenues. governmental activities / total expenses.897 net receivables + $430. GW statement of net assets) (h) Total net assets (governmental and business-type activities). inspection of governmental activities Cash account—all credits except those for the capital projects fund) 108 . (m) Non-tax revenues (i. expenditures. Since actuarial information is not provided for the City of Bingham problem.000 temporary investments in debt service fund) / current liabilities ($57.e. beginning of year (Source: GW statement of activities) (i) Net revenues.476.
. Overall. all reflect lower than needed levels of current financial resources.042.000. and this is likely to continue for quite some time. the rather high debt to asset ratio (about .a. (Source: Governmental activities general ledger.90) and property taxes per capita ($156. slightly below the “red flag” level of .) (p) Bonded debt over legal debt limit.7 percent of noncapital expenditures being used for debt service. As shown by several of the financial position ratios. as explained below: 1.000.g of this case was given as $40. In addition. which from 6. On the other hand.(o) General bonded debt (including unamortized premium) / Population (Given in instructions as 50. the city’s debt burden is contributing significantly to the observed financial weakness.000. (Source: GW statement of net assets. Analysis: Although there is no information provided by which to compare the City of Bingham’s ratios to those of comparable small cities. The ratio of its General Fund budgetary fund balance to general revenues is only . this ratio cannot be calculated. Its unrestricted net assets ratio.000 general obligation bond issue ("sold at an advantageous 5 percent annual interest rate") financed the construction and the cost of land which had to be purchased as 109 2. the fact that capital assets are only about 39 percent depreciated suggests that financing needs for replacement capital assets may be only moderate in the next few years. As a further indication of possible financial distress. (q) Property tax levy (General Fund and debt service fund. current ratio. This is also reflected in the “fixed charge” debt service load of 12. A $5.230. and quick ratio.000.000.14) / Population of 50. certain tentative conclusions can be made regarding the city’s financial condition. In the long-run. the city’s net assets decreased substantially during the year. 3.25) suggests that although the citizens of the City of Bingham will be supporting a significant debt service load for many years to come. Since information about sales taxes or the prior year was not provided. as adjusted for transaction 4. 4. the City of Bingham does not have adequate financial reserves and could suffer significant problems in the following year should a revenue shortfall or unforeseen expenditures occur.42) and moderate ratios of bonded debt per capita ($329. resource growth may not meet the needs. Taxes Receivable— Current account) (r) (Sales tax revenue current year minus sales tax revenue prior year) / sales tax revenue prior year. its interperiod equity declined during the year because total expenses for the year exceeded total revenues.05 commonly considered a level of financial distress. A "much needed" annex to the city hall was built at a cost of approximately $4.000).
000 to the debt service fund fund balance for future redemption of bonds and interest due on December 31. the billing rate is set at the current high level in anticipation of future plant expansion or replacement. Over $377. The savings on construction. after expenditures. Premium on the sale of the bonds amounted to $100.066.700.246.000) and furniture and equipment for the annex ($498. depending on the Utility manager’s future plans for the fund’s unrestricted net assets. Net income of the water utility for the year amounted to $745. This may appear excessive. Interest of $21.000.080 interest and penalties on taxes levied for debt service were earned.200).000 was added to the net assets available for benefits to members of the Employees' Retirement Fund of the City of Bingham during the year. This premium was invested during the year. and $1. This amount plus the $100. but $4.000 was earned on these investments. the City of Bingham appears to be struggling with a high debt burden and low operating reserves.800. Construction efficiencies allowed $19.400. bond premium. 110 . Perhaps. as was all other cash received in advance of required disbursements.a site for the annex ($250.000.000. 6. more than $500. or about 24 percent of sales. Revenue from taxes levied for debt service amounted to $1. on sales of $3. 5.000 new bond issue less $600.800 to be saved.000 retired) was added to bonded debt during the year. 2011. and interest earnings helped cover bond interest payments during the year. The current year saw some improvement in operating reserves.000 ($5.000 premium added. In conclusion.
2011. the respective financial position of the governmental activities. Nevertheless. each major fund. similar to that shown in Illustration 12-2 appears to be appropriate for the year ended December 31. 2011.Chapter 12 The auditor's report for the City of Bingham should follow the wording of Illustration 12-2. and City Manager. If so. and the respective changes in financial position and. such as those shown in Illustration 12-2. 2011. evidence supporting the amounts and disclosures in the financial statements. An audit includes examining. in all material respects. We believe that our audit provides a reasonable basis for our opinions. Our responsibility is to express an opinion on these financial statements based on our audit. on a test basis. In our opinion. which collectively comprise the City’s basic financial statements as listed in the table of contents. each major fund. City of Bingham We have audited the accompanying financial statements of the governmental activities. These financial statements are the responsibility of the City of Bingham’s management. as well as evaluating the overall financial statement presentation. this will provide you with an opportunity to explain to the student why the specified report wording is critical to an auditor. cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. as of and for the year ended December 31. the financial statements referred to above present fairly. although most probably will not use the exact wording specified. as of December 31. City Council. one or more explanatory paragraphs are usually required in most situations. where applicable. An audit also includes assessing the accounting principles used and significant estimates made by management. the businesstype activities. and the aggregate remaining fund information of the City of Bingham (State). --End-- 111 . We conducted our audit in accordance with auditing standards generally accepted in the United States of America. the business-type activities. and the aggregate remaining fund information of the City of Bingham (State). In addition. An unqualified audit report on the City of Bingham should appear as follows: The Honorable Mayor. it should use the wording specified in the audit guide. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. some students may have issued a "qualified" report for some perceived reason. If not. An unqualified report.
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