and Control The city ha ity's visitors' bureau, which promotes tourism and conventions, is funded by an by the asounany tax (a tax on the cost of a stay in a hotel). Because the visitors' bureau is su Percent fund). Pri maintaini R 34 A city imposes an hotel complained that the . On even department. Yet the ar amountsed only to satisfy "diree occupancy tax, it is arena's a You recently received a call from the director of the visitors' bureau. She co specified dollar amount on her served manager is about to impose an overhead charge of a the revenues can be used only to satisfy "d The po tax specifies that tourism and bookings at the city 's convention center. The mana difficulty balancing its budget, but she fails to see how thec L. la lisht of the city's fscal problems, what is the most likely motivation for the new charge? Wiu to promote that the city is having that she ba . The ci to her department will do much to alleviate the city's fiscal problems. The c to be new overhead charge achieve its objective? What would be the impact of the new charge on the city's annual fund financial state ments, prepared in governmental funds on a modified accordance with GAAP (which requires that the city account for its 1. Wo accrual basis)? Would the impact be the same if the city accounted cash basis? for its governmental funds on a 3. What would be the impact of the new charge on the city's government-wide statements, in whi governmental funds are consolidated? Would it have an impact on reported net position? 4. In what way might the charge have a substantive impact on the city's economic condition? in which all 5. Assuming that the city provided accounting, legal, and purchasing services to the visitors' bureau, do you think the charge would be consistent with the statutory requirement that the hotel occupancy be used to meet only "direct expenditures" related to tourism and use of the convention center (an issue not addressed in this text)? tax To w P. 3-5 Government activities may be less "profitable" than they appear. A city prepares its budget in traditiqnul Ye and Control The city ha ity's visitors' bureau, which promotes tourism and conventions, is funded by an by the asounany tax (a tax on the cost of a stay in a hotel). Because the visitors' bureau is su Percent fund). Pri maintaini R 34 A city imposes an hotel complained that the . On even department. Yet the ar amountsed only to satisfy "diree occupancy tax, it is arena's a You recently received a call from the director of the visitors' bureau. She co specified dollar amount on her served manager is about to impose an overhead charge of a the revenues can be used only to satisfy "d The po tax specifies that tourism and bookings at the city 's convention center. The mana difficulty balancing its budget, but she fails to see how thec L. la lisht of the city's fscal problems, what is the most likely motivation for the new charge? Wiu to promote that the city is having that she ba . The ci to her department will do much to alleviate the city's fiscal problems. The c to be new overhead charge achieve its objective? What would be the impact of the new charge on the city's annual fund financial state ments, prepared in governmental funds on a modified accordance with GAAP (which requires that the city account for its 1. Wo accrual basis)? Would the impact be the same if the city accounted cash basis? for its governmental funds on a 3. What would be the impact of the new charge on the city's government-wide statements, in whi governmental funds are consolidated? Would it have an impact on reported net position? 4. In what way might the charge have a substantive impact on the city's economic condition? in which all 5. Assuming that the city provided accounting, legal, and purchasing services to the visitors' bureau, do you think the charge would be consistent with the statutory requirement that the hotel occupancy be used to meet only "direct expenditures" related to tourism and use of the convention center (an issue not addressed in this text)? tax To w P. 3-5 Government activities may be less "profitable" than they appear. A city prepares its budget in traditiqnul Ye