Question

The City of Roanoke adopted the following budget for fiscal year 2019:   

Anticipated Revenues: Property Taxes Licenses and Permits Fines and Forfeits             Total	- $6,060,000     402,000   308,000 $6,770,000
Approved spending levels: General Government Public Safety Public Works             Total	- $1,860,000 2,500,000 1,785,000 $6,145,000

    In addition, the City reported the following actual amounts for the same fiscal year.

Revenues: Property Taxes Licenses and Permits Fines and Forfeits             Total	- $5,862,000     391,000   311,000 $6,564,000
Expenditures – Current Year General Government Public Safety Public Works                 Total Encumbrances - Current Year Public Safety Expenditures related to 2018 encumbrances	- $1,601,000 2,380,000 1,695,000 $5,676,000 - $ 100,000 $ 10,000

Required: Prepare a budgetary comparison schedule for the City for the year ended December 31, 2019 assuming the fund balance of the General Fund (budgetary basis) was $652,000 at January 1, 2019. No "original budget" column is required. Include a "variance" column.

Answer 1

City of Roanoke
Budgetary Comparision Schedule
For the year ended 2019
	Budget(Original and Final	Actual	Variance with final budget over or (under)
Revenues
Property Taxes	$         60,60,000	$58,62,000	$ (1,98,000)
Liciences and Permits	$           4,02,000	$   3,91,000	$ (11,000)
Fines and Forfiets	$           3,08,000	$   3,11,000	$                            3,000
Total Revenues	$         67,70,000	$65,64,000	$ (2,06,000)
Expenditures
General Government	$         18,60,000	$16,01,000	$ (2,59,000)
Public Safety	$         25,00,000	$23,80,000	$ (1,20,000)
Public Works	$         17,85,000	$16,95,000	$ (90,000)
Total Expenditures	$         61,45,000	$56,76,000	$ (4,69,000)
Excess of revenue over Expenditure	$           6,25,000	$ 8,88,000	$                      2,63,000
Increase in Encumbrances outstanding		$      90,000	$                         90,000
Increase in Fund Balances	$           6,25,000	$   9,78,000	$                      3,53,000
Fund Balance 1/1	$           6,52,000	$   6,52,000	$                                  -
Fund Balance 12/31	$         12,77,000	$16,30,000	$                      3,53,000

Note:

Increase In Encumbrances Outstanding

Fund balances do not include encumbrances.

So, the $100,000 of encumbrances which were included as actual expenditure for budgetary comparison should be added back to confirm they doesnt affect fund balances. Even though, $10,000 of the expenditures made during the year for goods received in 2019 that were ordered in 2018 were reported as expenditures of the current year and therefore deducted fund balances by that amount.

So, 100,000 -10,000 = 90,000