Moreover the primary source of revenue for both government and business type

Moreover the primary source of revenue for both

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Moreover, the primary source of revenue for both government and business-type activities are the program revenues and general revenues. Program revenues are revenues gained directly from a government program or individuals or entities outside the reporting government's community. The revenue itself is used to cover the costs of the program. The three types of program revenue are Charges for Services, Program-Specific Grants and Contributions, and Earnings on Investment. Whereas the general revenues are revenues that are acquired through business and property taxes, and they are set aside for a particular purpose. Examples of general revenues include all taxes and non-tax-revenues, such as unrestricted grants and contribution (Hegar, n.d.). However, the CAFR does discuss the accounting basis for recognizing revenue which is the modified accrual basis of accounting because generally, revenue is recognized only when a critical event has occurred, and the amount of revenue is measurable. (CAFR, p.133). Despite that, the net assets on the governmental-fund balance sheet do report deferred revenues in arrears for property taxes not being paid in the current fiscal year but as an overflow, in the
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THE COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) 5 following year because they are not yet revenues and therefore, cannot be reported on the income statement. As a result, the unearned amount must be deferred to the company's balance sheet where it will be reported as a liability. (CAFR p. 29-31.) Likewise, the City of Sioux Falls, South Dakota has an average effective property tax rate of 1.32% which makes South Dakota the 16th highest property tax rate in the U.S. Besides; it is one of four states that have neither a corporate income tax nor a personal income tax. South Dakota is arguably the most income tax-friendly state in the country. Likewise, for property tax, the percentage of fair market value is assessed at 45.71% per $100 of taxable value and personal property are due by January 31 each year. Also, both interest and penalties on any default payment of property taxes begin on February 1 if payment is not received. Besides, the City of Sioux Falls, South Dakota does generate revenues from traffic fines, which appears to be listed under the general revenues on (CAFR, p.133). Also, the City (CAFR) does include required supplementary information which talked about budget comparison schedules, budget reconciliation in conformity to (GAAP), retirement for city works and budget amendments on (CAFR, p.105). However, the (CAFR) also include combining statements in its
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