Exploring Vero Beach’s financial report Refer to the financial statements of the City of Vero Beach in Chapter 3.
1. Wages and salaries are often a large proportion of a general-purpose government’s expenditures. Why, then, are these amounts not separately reported in Vero Beach’s government wide and governmental fund financial statements?
2. The notes to Vero Beach’s financial statements state that inventories are accounted for using the consumption method. What does this mean?
3. What amount does Vero Beach report for inventories related to governmental activities in its government-wide statement of net assets?
4. What amount does Vero Beach report in its governmental fund statements as expenditures for repayment of debt principal? Is the same amount reported as an expense in the government-wide statements? Explain.
5. What types of other financing sources and uses does Vero Beach report in the general fund? What effect did these items have on the net change for the year in the fund balance?