Governmental Accountin $-$

Scenario $-$ Analyzing the Impact of a Revenue Source

You are employed by a local bank as an Analyst. Two local communities have approached your bank asking for a loan. Your job as the Analyst is to assess each community's fiscal condition.

During your analysis of Community A$,$ you discover that it has an unusually high ratio of intergovernmental revenues to total revenues. What concerns, if any, would you identify in the conclusions of your analysis based on this factor?

Then, you discover that Community B has an unusually low ratio of intergovernmental revenues to total revenues. What concerns, if any, would you identify in the conclusions of your analysis based on this factor?