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calculate the budgetary cushion and the operating margin and assesses the results based on guidance established by the government finance officers Association in New York's
calculate the budgetary cushion and the operating margin and assesses the results based on guidance established by the government finance officers Association in New York's physical stress monitoring system
The following data affecting the calculation of a small village's budget solvency and operating results indicators were obtained from the village's 2017 General Fund financial statements. Calculate the budgetary cushion and the operating margin and assess the results based on guidance established by the Government Finance Officers Association and New York's Fiscal Stress Monitoring System. a. Balance sheet data: The village's fund balance is $9,456,000, consisting of: Nonspendable - $217,000; Restricted - $1,882,000; Assigned - $887,000; and Unassigned - $6,470,000 b. Statement, of revenues, expenditures, and changes in fund balance data: Net change in fund balance $592,000; Total revenues - $19,001,000; Recurring transfers in - $50,000 c. Assessment criteria: The GFOA recommends that the total of unassigned, assigned, and committed fund balance of the General Fund should be no less than two months of regular General Fund operating revenues or regular General Fund operating expenditures. New York State's Fiscal Monitoring System assigns negative points in its rating scheme unless the government's assigned and unassigned fund balance in the General Fund is more than 10 percent of General Fund expenditures plus transfers out. (Note: When making the assessment in this problem, assume the village's revenues plus recurring transfers in are the same as expenditures plus transfers out) Step by Step Solution
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