Financial Trend 1onitoring System—Reserves. The City of Scottsdale, Arizona, provides the following report on the following page about its reserve policies on page 12 of its October 2007 financial trends booklet.
Required
a. Refer to Illustration 10—1. To which categories of factors affecting financial condition do you believe this statement belongs?
b. Assess the adequacy of this note. Do you need more information to understand how the reserve financial policy affects the city’s financial condition? Explain.