In Memphis the original operating budget for fiscal year 2015 anticipated a

In memphis the original operating budget for fiscal

This preview shows page 5 - 7 out of 9 pages.

year 2015 anticipated a contribution to fund balance of $81.4 million; the actual contribution to fund balance for fiscal year 2015 was $23.9 million. Differences between the original budget and the final amended budget of Memphis can be briefly summarized as follows:Local taxes were increased $13.4 million, largely attributable to sales tax and liquor by the drink tax. State taxes were increased $3 million for increases in state income taxes. Transfers In from Memphis Light Gas & Water increased by $6.2 million. Expenditures budget was increased $42,008 to adjust for increased material and supplies line items, largely attributable to public safety and transportation.Transfers out were adjusted up $13.5 to accommodate transfers to the Healthcare and OPEB Funds.Both cities acknowledged their respective Office of the City Auditors in their transmittal letters but did not go into detail concerning internal audit functions.However,each city’s website is in agreement with the function of the internal auditors. According to Austin’s Office of the City Auditor, they were created to assist in establishing accountability, transparency, and continuous improvement in the local government operations and service delivery. Memphis auditors in return provide services to assess thereliability and integrity of financial and operational information, evaluate internal controls, and conduct investigations of abuse, fraud, and waste. Therefore, both serve an equivalent purpose concerning internal audit functions.5
Background image
CAFR REPORTThe budget-to-actual comparison of the general governmental fund is located in the required supplementary information section. According to the notes to the basic financial statements, government fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Therefore, both cities prepare its annual operating budget based on the resources measurable and available, a budgetary basis. The positive and negative variances in the budget to actual revenues and expenditures are based on the difference between actual and the final budget amounts. Furthermore, actual amounts are on both a budgetary and GAAP basis. For that reason, a reconciliation of the budgetary basis to GAAP basis is included in the notes to required supplementary information section. In Memphis, property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and thus have beenrecognized as revenues of the current fiscal period. Licenses and permits, charges for services, fines and forfeitures, and miscellaneous revenues (except for investment earnings) are recorded as revenues when received in cash because they are generally not measurable until actually received. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Background image
Image of page 7

You've reached the end of your free preview.

Want to read all 9 pages?

  • Fall '10
  • smith
  • Generally Accepted Accounting Principles, cafr report

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture