The budget report for the first three quarters of the fiscal year has been prepared for the City of Leeville’s Street Maintenance Division. The Division is responsible for regular maintenance of the city’s streets, curbs, medians, alleys, and sidewalks. Located in the northeastern part of the United States, the City has a fiscal year that runs from October 1st to September 30th.

Required

Review the budget report and answer the following questions.

a. No encumbrances are listed for Personnel as of July 1st. What is a likely reason there are no encumbrances for Personnel?

b. No encumbrances are listed for Capital Outlays as of July 1st. Normally, would you expect encumbrances to be used for Capital Outlays? What is the likely reason there are no encumbrances listed for Capital Outlays?

c. Analyze the Available Appropriations remaining for the Division. Are there any line items where it appears expenditures and encumbrances will exceed available appropriation by the end of the year? Are there any line items where it appears there is more available appropriation than will be needed? Provide calculations to support your analysis.

d. Given the information provided, discuss factors that could impact the spending patterns of the various line items and explain that what appears to be potentially an over(under)spending budget may not actually occur. 

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CITY OF LEEVILLE Street Maintenance Division Third Quarter Budget Report Run date: July 1, 20x2 Account Number Account Title 01 08-00 6110 01 08-00 7110 01 08-00 7310 01 08-00 7410 01 08-00 7810 Capital Outlay Personnel $ 647,000 Materials and Supplies 1,113,600 Utilities 98,991 144,928 117,000 FY 20x2 Budget Miscellaneous Expenditures Encumbrances 20x2 to Date Outstanding $537,010 979,968 73,748 87.681 110,250 $ 0 19,599 0 4,384 0 Available Appropriations $109,990 114,033 25,243 52,863 6,750