Hi, hope you are staying safe. Questions are in bold. I still have questions 3 and 4 to answer.

Help with either one would be great.

Instructions

Consider the following issues:

The Board of Alderman of the Hayville approved the Appropriations budget for its General Fund for the year ending December 31st as shown below.

General Government: $500,000

Public Safety 2: $800,000

Public Works: $1,200,000

Health and Welfare: $1,300,000

Culture and Recreation: $700,000

Contributions to Retirement Fund: $600,000

Total General Fund Appropriations: $7,100,000

In a paper, provide responses to the following:

1 Explain the legal significance of an appropriation and why auditors engaged for a financial and compliance audit need to know the meaning of the term.

1. The legal significance of an appropriation refers to an ordinance of authorization for administration to incur on behalf of the government, liabilities in specific amounts, for specificpurposes, and for a specific periods of time indicated whithin the ordinance. Auditors engaged for a financial and compliance audit need to know the meaning of the term because they must affirm that material expenditures are not in violation of the terms specified within the appropriation ordinance.

2 It is illegal for a governmental unit to spend money for any purpose unless a valid appropriation for that purpose exists? Does this legal rule assure good financial management for each governmental unit? Why or why not?

2. Generally, it is illegal for a governmental unit to spend money for any purpose unless a valid appropriation for that purpose exists. However, if resource input and service output are directly aligned with stated appropriation purpose, good financial management for each governmental unit is suggested. But this legal rule does not necessarily assure good financial management as inefficiency, aligned or not, is subjective and may signal poor planning.

3 Provide the entry in General Journal form to record the budget in all necessary General Ledger and Subsidiary Ledger accounts.

4 Illustrate a form of Appropriations, Expenditures, and Encumbrances subsidiary ledger account that would provide the information needed by a government finance director to ensure compliance with legal requirements concerning appropriations.