The spreadsheet shown is the "Step 4 budget variance report."

5. Analyze the budget variance report you prepared in Step 4. What variances do you think should be investigated? Why? City of Somerville, MA Budgeted Expenditures (hypothetical) For Year Ended December 31, 2016 2016 Variance Variance Expenditure (Item Class) Budget Actual $ Advertising $ 66,048 $ 67,369 $ (1,321) -2.00% Athletics expense $ 36,400 $ 37,857 $ (1,457) 4.00% Bonds and debt-related expenditures $ 62,334,155 $ 62,957,497 $ (623,342) -1.00% Books $ 17,698 $ 22,654 $ (4,956) -28.00% Dues and subscriptions $ 154,062 $ 183,334 $ (29,272) -19.00% Education-related $ 294,264 $ 329,577 $ (35,313) -12.00% Miscellaneous line item $ 43,799,465 $ 45,551,444 $ (1,751,979) 4.00% Professional services expense $ 7,339,418 $ 9,174,273 $ (1,834,855) -25.00% Property, plant and equipment $ 5,700,126 $ 6,042,134 $ (342,008) -6.00% Rental expense $ 407,084 $ 390,801 $ 16,283 4.00% Repairs and maintenance expense $ 2,567,306 $ 2,978,076 $ (410,770) -16.00% Supplies expense $ 22,871 $ 22,643 $ 228 1.00% Technology expense $ 551,148 $ 606,264 $ (55,116) -10.00% Utilities expense $ 260,627 $ 304,934 $ (44,307) -17.00% Total expenditures $ 123,550,672 $ 128,668,856 $ (5,118,184) -139.01% how transcribed image text