Chapter 3

3-1. The solution to this and the first exercise of Chapters 1 and 2 and 4 through 9 will differ
from student to student assuming each has a different CAFR.

3-2.
1. C.
2. D.
3. B.
4 4. C.
5. C.
6. B.
7. A.
8. C.
9. A.
10. B.

3-3.
1. B.
2. A.
3. D.
4. C.
5. D.
6. D.
7. D.
8. C.
9. D.
10. C.

3-1
3-4. CITY OF SOUTH DUNDEE
APPROPRIATION, EXPENDITURES, AND ENCUMBRANCES LEDGER
GENERAL FUND: Public Safety - Police

MONTH: JULY, 2006

Unexpended
Appropriation
Balance
Transaction Reference Appropriations Encumbrances Expenditures = SUM
1  Budget ($18,000,000)     ($18,000,000)
Purchase Orders
 2 Issued   $600,000   ($17,400,000)
Invoices received
and approved for
 3 payment   ($580,000) $575,000 ($17,405,000)
 4 Payrolls     $898,000 ($16,507,000)
 5 Budget Revision $20,000     ($16,487,000)
 
($17,980,000) $20,000 $1,473,000 ($16,487,000)

$ Amounts in ( ) denote credits

3-5.
Debits Credits
A. Estimated Revenues Control 10,000,000
Appropriations Control 9,800,000
Budgetary Fund Balance 200,000

B. Estimated Revenues Control 9,800,000

Budgetary Fund Balance 200,000
Appropriations Control 10,000,000

C. Estimated Revenues Control 10,000,000

Estimated Other Financing Sources
Control 1,300,000
Appropriations Control 9,800,000
Estimated Other Financing
Uses Control 1,200,000
Budgetary Fund Balance 300,000

3-2
D. Estimated Revenues Control 9,800,000
Estimated Other Financing
Sources Control 1,200,000
Budgetary Fund Balance 300,000
Appropriations Control 10,000,000
Estimated Other Financing
Uses Control 1,300,000

3-6.

A. Total Appropriations $ 50,000,000

Less: Other Revenues 24,000,000
Amount to be Raised From Property Tax 26,000,000

B. Amount to be Raised From Property Tax 26,000,000

Divide by Percentage Collectible .98
Property Tax Levy (Rounded) 26,530,612

C. Total Market Value of Property 2,000,000,000

Exempt for Religious and Other Reasons 200,000,000
Assessed Property 1,800,000,000
Assessment Ratio X 1/3

Assessed Value of Property 600,000,000

Less: Exemptions for Household, Old Age, etc. 80,000,000

Net Assessed Valuation 520,000,000

Property Tax Levy 26,530,612

Net Assessed Valuation 520,000,000

Property Tax Rate .0510

or $5.10 per $100 net assessed valuation

D. Millage Rate = $51.00 (the rate per $1,000 NAV)

3-3
3-6 (Continued).
E. Market Value of Home 180,000

Assessment Ratio 1/3

Assessed Value (Rounded) 60,000

Homestead Exemption 2,000

N.A.V. Subject to Tax 58,000

Property Tax Rate X $ 0.0510

Property Tax $ 2,958.00

3-7.

VILLAGE OF SYCAMORE
GENERAL JOURNAL
YEAR ENDED DECEMBER 31, 2007
Debi Credits
ts
A. Estimated Revenues Control 1,000,000
Appropriations Control 980,000
Budgetary Fund Balance 20,000

B. Cash 1,010,000
Revenues Control 1,010,000

C. Encumbrances Control 500,000

Budgetary Fund Balance Reserved for
Encumbrances 500,000

D. Budgetary Fund Balance Reserved for

Encumbrances 470,000
Encumbrances Control 470,000

Expenditures Control 480,000

Accounts Payable 480,000

E. Expenditures Control 460,000

Accounts Payable 460,000

3-4
3-7 (Continued).
F. Appropriations Control 980,000
Budgetary Fund Balance 20,000
Estimated Revenues Control 1,000,000

Revenues Control 1,010,000

Expenditures Control 940,000
Encumbrances Control 30,000
Fund Balance-Unreserved 40,000

Budgetary Fund Balance-Reserved for

Encumbrances 30,000
Fund Balance-Reserved for
Encumbrances 30,000

3-8 (A).
JOHNSON COUNTY
GENERAL FUND -GENERAL JOURNAL
YEAR ENDED DECEMBER 31, 2007
General Ledger Subsidiary Ledger
` Debits Credits Debits Credits
1. Estimated Revenues Control 10,100,000
Budgetary Fund Balance 10,100,000

Revenues Ledger:
Sales Taxes 6,000,000
Fines and Forfeits 2,000,000
Licenses and permits 1,750,000
Intergovernmental
Revenues 350,000
2. Budgetary Fund Balance 9,690,000
Appropriations Control 9,690,000

Appropriations Ledger:
General Government 2,100,000
Public Safety 3,890,000
Culture and
Recreation 700,000
Health and Welfare 3,000,000

3-5
3-8 (A) (Continued).

3. Cash 10,045,000
Revenues Control 10,045,000

Revenues Ledger:
Sales Taxes 5,930,000
Fines and Forfeits 1,990,000
Licenses and Permits 1,740,000
Intergovernmental
Revenues 385,000
4. Encumbrances Control 2,030,000
Budgetary Fund Balance
Reserved for
Encumbrances 2,030,000

Encumbrances Ledger:
General Government 450,000
Public Safety 800,000
Culture and Recreation 280,000
Health and Welfare 500,000
5A. Budgetary Fund Balance-
Reserved for Encumbrances 1,725,000
Encumbrances Control 1,725,000
Encumbrances Ledger:
General Government 450,000
Public Safety 500,000
Culture and Recreation 275,000
Health and Welfare 500,000
5B. Expenditures Control 1,738,000
Accounts Payable 1,738,000
Expenditures Ledger:
General Government 452,000
Public Safety 510,000
Culture and Recreation 276,000
Health and Welfare 500,000
6A. Estimated Revenues Control 35,000
Budgetary Fund Balance 35,000
Revenues Ledger:
Intergovernmental Revenues 35,000
6B. Budgetary Fund Balance 100,000
Appropriations Control 100,000

3-6
3-8 (A) (Continued).

Appropriations Ledger:
General Government 100,000
7. Expenditures Control 7,745,000
Accounts Payable 7,745,000
Expenditures Ledger:
General Government 1,747,000
Public Safety 3,080,000
Culture and Recreation 418,000
Health and Welfare 2,500,000

3-8 (B). JOHNSON COUNTY

GENERAL LEDGER
Estimated Revenues
Control Revenues Control Cash
(1)10,100,000 (3)10,045,000 (3)10,045,000
(6a) 35,000
10,135,000

Appropriations Control Expenditures Control Accounts Payable

(2)9,690,000 (5b)1,738,000 (5b)1,738,000
(6b) 100,000 (7)7,745,000 (7) 7,745,000
9,790,000 9,483,000 9,483,000

Budgetary Fund Balance

Reserved
for Encumbrances Encumbrances Control Budgetary Fund Balance
(5a)1,725,000 (4)2,030,000 (4)2,030,000 (5a)1,725,000 (2)9,690,000 (1)10,100,000
(6b) 100,000 (6a) 35,000
305,000 305,000 345,000

3-7
3-8 (C).
JOHNSON COUNTY
REVENUE LEDGER
$ Amounts in ( ) denote credits

Estimated
Revenues Not
Estimated Actual Yet Realized
Transaction Reference Revenues Revenues [= Sum]

SALES TAXES
(1) Initial Budget $6,000,000   $6,000,000

(3) Collections   ($5,930,000) $70,000

TOTAL $6,000,000 ($5,930,000) $70,000

FINES AND
FORFEITS
(1) Initial Budget $2,000,000   $2,000,000
(3) Collections   ($1,990,000) $10,000
 
TOTAL $2,000,000 ($1,990,000) $10,000

LICENSES
AND PERMITS
(1) Initial Budget $1,750,000   $1,750,000
(3) Collections   ($1,740,000) $10,000
TOTAL  
$1,750,000 ($1,740,000) $10,000
INTER-
GOVERNMENTAL
REVENUE
(1) Initial Budget $350,000   $350,000
(3) Collections   ($385,000) ($35,000)
(6) Budget Revision $35,000   $0
 
TOTAL $385,000 ($385,000) $0

TOTAL: ALL REVENUES $10,135,000 ($10,045,000) $90,000

Proof
Estimated Revenues Control Account = 10,100,000 (Entry 1) + 35,000
(Entry 6)=$10,135,000
Subsidiary = $6,000,000 + 2,000,000 + 1,750,000 + 385,000 = $10,135,000
Revenues Control = $10,045,000 (Entry 3)
Subsidiary = $5,930,000 + 1,990,000 + 1,740,000 + 385,000 = $10,045,000

3-8
3-8 (C). JOHNSON COUNTY – GENERAL FUND
APPROPRIATIONS, ENCUMBRANCES, AND EXPENDITURES LEDGER
Unexpended
$ Amounts in ( ) denote credits Appropriation
Balance
Transaction Reference Appropriations Encumbrances Expenditures = SUM
GENERAL
GOVERNMENT
2 Budget ($2,100,000)     ($2,100,000)
Purchase Orders
4 Issued   $450,000   ($1,650,000)
Invoices received
and approved for
5 payment   ($450,000) $452,000 ($1,648,000)
6 Budget Revision ($100,000)     ($1,748,000)
Personnel
7 services     $1,747,000 ($1,000)
 
TOTAL ($2,200,000) $0 $2,199,000 ($1,000)

PUBLIC
SAFETY
2 Budget ($3,890,000)     ($3,890,000)
Purchase Orders
4 Issued   $800,000   ($3,090,000)
Invoices received
and approved for
5 payment   ($500,000) $510,000 ($3,080,000)
Personnel
7 services     $3,080,000 $0
 
TOTAL ($3,890,000) $300,000 $3,590,000 $0

CULTURE &
RECREATION
2 Budget ($700,000)     ($700,000)
Purchase Orders
4 Issued   $280,000   ($420,000)
Invoices received
and approved for
5 payment   ($275,000) $276,000 ($419,000)
Personnel
7 services     $418,000 ($1,000)
 
TOTAL ($700,000) $5,000 $694,000 ($1,000)

3-9
 HEALTH &
WELFARE
2 Budget ($3,000,000)     ($3,000,000)

4 Purchase Orders Issued   $500,000   ($2,500,000)

Invoices received and

5 approved for payment   ($500,000) $500,000 ($2,500,000)
7 Personnel services     $2,500,000 $0
 
TOTAL ($3,000,000) $0 $3,000,000 $0

TOTAL ALL DEPARTMENTS ($9,790,000) $305,000 $9,483,000 ($2,000)

Proof
Encumbrances Control = $2,030,000 (Entry 4) - $1,725,000 (Entry 5A) = $ 305,000
Subsidiary Accounts-Public Safety, $300,000; Culture and Rec., $5,000 = $ 305,000
Expenditures Control = $1,738,000 (Entry 5B) + $7,745,000 (Entry 7) = $9,483,000
Subsidiary = $2,199,000 + $3,590,000 + $694,000 + $3,000,000 = $9,483,000
Appropriations Control = ($9,690,000 (Entry 2) + 100,000 (Entry 6b) = $9,790,000
Subsidiary = $2,200,000 + $3,890,000 + $700,000 + $3,000,000 = $9,790,000

3-10
3-8 (D).
JOHNSON COUNTY
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED DECEMBER 31, 2007

Variance
Actual With Final
Amounts Budget
Budgeted Amounts (Budgetary Positive
Original Final Basis) (Negative)
Revenues:
Sales Taxes $6,000,00 $6,000,000 $5,930,000 $(70,000)
Fines and Forfeits 0 2,000,000 1,990,000 (10,000)
Licenses and Permits 2,000,000 1,750,000 1,740,000 (10,000)
Intergovernmental 1,750,000 385,000 385,000 -0-
Total Revenues 350,000 10,135,000 10,045,000 (90,000)
10,100,00
0
Expenditures and Encumbrances:
General Government 2,100,000 2,200,000 2,199,000 1,000
Public Safety 3,890,000 3,890,000 3,890,000 ---
Culture and Recreation 700,000 700,000 699,000 1,000
Health and Welfare 3,000,000 3,000,000 3,000,000 ---
Total Expenditures and
Encumbrances 9,690,000 9,790,000 9,788,000 2,000
Excess (Deficiency) of Revenues
Over Expenditures and
Encumbrances 410,000 345,000 257,000 (88,000)

Fund Balance, Beginning 150,000 150,000 150,000 ---

Fund Balance, Ending $560,000 $495,000 $ 407,000 $(88,000)

(E) The following amounts of appropriations for 2007 lapsed as of December 31,
2007 (The amount of each appropriation that was neither expended during 2007
nor encumbered at year-end--See the Variance column above):

General Government $ 1,000

Public Safety --0--
Culture and Recreation 1,000
Health and Welfare --0--
Total $ 2,000

3-11
3-9.
CITY OF GRAFTON
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED DECEMBER 31, 2007

Variance
Actual With Final
Amounts Budget
Budgeted Amounts (Budgetary Positive
Original Final Basis) (Negative)
Revenues:
Taxes $3,000,000 $3,000,000 $3,000,000 ---
Licenses and Permits 800,000 800,000 801,320 1,320
Intergovernmental 300,000 290,000 293,000 3,000
Miscellaneous 200,000 197,000 198,000 1,000
Total Revenues 4,300,000 4,287,000 4,292,320 5,320
Expenditures and Encumbrances:
General Government
Public Safety 900,000 898,000 898,000 ---
Health and Welfare 2,000,000 2,000,000 1,999,000 1,000
Total Expenditures and 1,400,000 1,400,000 1,398,000 2,000
Encumbrances
4,300,000 4,298,000 4,295,000 3,000
Excess (Deficiency) of Revenues
Over Expenditures and
Encumbrances --0-- (11,000) (2,680) 8,320

Other Financing Sources(Uses)

Transfers to Other Funds (600,000) (600,000) (600,000) ---

Net Change in Fund Balance (600,000) (611,000) (602,680) 8,320

Fund Balance, Beginning 1,038,000 1,038,000 1,038,000 ---

Fund Balance, Ending $438,000 $427,000 $ 435,320 $8,320

3-12
3-10.

A. The Distinguished Budget Awards Program was first established in 1984. During 2002,
1,0404 governments participated in the program; 1,044 governments are expected to
participate in 2003.

B. The answer to this question will vary from state to state.

C. The answer to this question will vary from state to state.

3-C. SEE THE SOLUTION TO CONTINOUS PROBLEM IN CHAPTER 4 OF THE

INSTRUCTOR’S MANUAL

3-13