1. Mifflin Co. ended the 2018 year with the following account balances (in $millions):

Cash 125

Supplies Inventory 10

Delinquent Ppty Tax Receivable 70

Allowance for Uncollectible Ppty Tx 5

Voucher Payable 23

Salaries Payable 15

Deferred Revenues-Ppty Taxes 40

Assigned Fund Balance 2

Fund Balance Not Spendable 10

Unassigned Fund Balance 110

• Purchases of supplies and capital outlays are subject to encumbrances. Salaries and other items are not encumbered Any open encumbrances at year-end are removed.
• Mifflin management applies the GASB 60-day rule to Sales tax and intergovernmental grants.

a- $15 due employees (Salaries Payable) is paid in cash

b-Outstanding Purchase Orders at the beginning of 2019 are reencumbered out of Assigned Fund Balance. They are for $2 Public Safety Supplies. (HINT: first recognize encumbrance. Then remove assignment of this amount of funds.

c-Delinquent Taxpayers pay $20 in 2018 taxes during the first 60 days of the year.

d- 2019 Property Taxes are levied. The amount of taxes levied is enough to exactly meet the 475 budgeted tax collections, while maintaining a 5% Uncollectible Tax rate.

e-$425 of Property Taxes are collected in cash by the due date.

f-A lawsuit results in a judgement against the county. $10 of 2019 collections (#5) are due for refund and then the refund amount is paid out to citizens.

g- A lawsuit results in a judgement against the county. $10 of the 2019 taxes on property that were levied but not received are overturned.

h-Delinquent Taxpayers pay $40 in 2018 taxes after the first 60 days of the year. No fees or penalties were assessed.

i-The County receives $200 from the state in collected Sales Tax.

j-The County is notified that $50 in Sales Tax will be forwarded within the first 30 days of the following year.

k-The County is notified that $11 in Sales Tax will be forwarded 90 days after the 2019 year-end.

l-A $20 voucher due from 2018 is paid in cash.

m-The Purchase order for Public Safety-supplies $2 is approved (#2).

n-The voucher for Public Safety-supplies $2 is prepared and supplies are purchased on account (#2).

o-Mifflin Co. receives a $100 state grant to be used this year for Public Safety salaries.

p-The following purchase orders are approved:

-a $200 for PS Capital Outlays

-b $25 for PS Capital Outlays

q-A Voucher is made for the following expenditure and purchase:

-a $205 for PS Capital Outlays

r-The following salaries are recognized during the year:

-a $250 for Public Safety Salaries ($90 meets eligibility for the state grant money (#15).

-b $150 for Health Salaries

-c $65 other Salaries

-d $35 Approved Vacation Pay

s-All Amounts in #18 are paid to employees in cash.

t-$50 of the $150 paid in Health Salaries (#18a) meets eligibility for a federal grant. Documentation is submitted requesting payment from the Federal Government.

u-The $205 Voucher (#17) is settled in Cash.

v-The end of year Allowance for Uncollectible Property Taxes balance is set at $20

w-$30 of Delinquent Property taxes is expected to be collected within 60 days of year end and $25 of outstanding Delinquent Taxes is expected to be received, but after the 60 day period.

x-Another $20 in Salaries (Public Safety) are earned at year end, but payment will not be made until 2020.

y-The actuary determines that $95 will be needed for Pension payments this year. A check is sent to the pension fund manager.

z-$45 is moved from the General Fund to the Debt Service Fund to pay amounts due on obligations.

aa-A year-end audit found $15 of Public Safety supplies on hand. The increase in supplies must be set aside as Not Spendable

bb-To comply with GASB Standard #54 regarding fund balance details, adjustments may be needed to reclassify Unassigned Fund Balances. Although Fund Balance restrictions (classifications) do not affect the operating statement, which only reports Total Fund Balance, such reclassifications do, in fact, affect the balance sheet, which does classify Fund Balance into 5 categories.

For 2019, 3 adjustments to Fund Balance were made end-of-the-year.

1-The county staff made an end-of-year adjustment to restrict grant money that was not spent (#15 and #18A)

2-Any unspent Encumbrances must be closed year-end and set aside from the Unassigned Fund Balance (Assigned). This includes the $25 for PS Capital Outlays from #16B.