The City of Edmond, Oklahoma, uses the Crawford Performeter® as a financial analysis tool and presents the results of this analysis in its Management Discussion and Analysis in the annual audited financial statements. For the year ended June 30, 2006, values for the following indicators were presented for the city as a whole:
Unrestricted net assets as apercentage of annual revenue
Percentage of assets funded
with outstanding debt
Change in net assets
of current year expenses funded by current year revenues
1.Use Illustration 10–7 in the text and assign a rating to each of the ratios provided (with 1 = lowest or worst to 10 = highest or best), calculate a score using the suggested weights provided, and compute an overall rating of the financial health and performance of this city for FY 2006.
2.Describe in your own words whether this city is in good shape or bad shape based on these indicators. Do the ratios point to areas where the city should pay particular attention in the future?
3. What other information would you find useful in analyzing the financial performance of this city for this year?
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