Question

The following transactions occurred during the 2020 fiscal year for the City of Evergreen. For budgetary purposes, the city reports encumbrances in the Expenditures section of its budgetary comparison schedule for the General Fund but excludes expenditures chargeable to a prior year’s appropriation.

1. The budget prepared for the fiscal year 2020 was as follows:

Estimated Revenues:
Taxes	$	1,943,000
Licenses and permits		372,000
Intergovernmental revenue		397,000
Miscellaneous revenues		62,000
Total estimated revenues		2,774,000
Appropriations:
General government		471,000
Public safety		886,000
Public works		650,000
Health and welfare		600,000
Miscellaneous		86,000
Total appropriations		2,693,000
Budgeted increase in fund balance	$	81,000

General government	$	58,000
Public safety		250,000
Public works		392,000
Health and welfare		160,000
Miscellaneous		71,000
Total	$	931,000

General government	$	411,000
Public safety		635,000
Public works		254,000
Health and welfare		439,000
Miscellaneous		11,100
Credit to Vouchers Payable	$	1,750,100

	Actual Liability				Estimated Liability
General government	$	52,700			$	52,200
Public safety		236,200				240,900
Public works		360,000				357,000
Health and welfare		130,600				130,100
Miscellaneous		71,000				71,000
	$	850,500			$	851,200

Additional information follows: The General Fund Fund Balance—Unassigned account had a credit balance of $96,900 as of December 31, 2019; no entries have been made in the Fund Balance—Unassigned account during 2020.

CITY OF EVERGREEN Appropriations/Encumbrances/Expenditures Ledger Encumbrances Expenditures Appropriations Transaction Account/Description Debit Credit Balance Debit Balance Credit Available Balance General Government 1 Budget Authorization 2 Encumbrances issued 5 Payroll 7 Invoices approved for payment Public Safety 1 Budget Authorization 2 Encumbrances issued 5 Payroll 6 Invoices for items ordered 7 Invoices approved for payment Public Works 1 Budget Authorization 2 Encumbrances issued 5 Payroll 7 Invoices approved for payment Health and Welfare 1 Budget Authorization 2 Encumbrances issued 5 Payroll 7 Invoices approved for payment Miscellaneous 1 Budget Authorization 2 Encumbrances issued 5 Payroll 7 Invoices approved for payment

Answer 1

a.

CITY OF EVERGREEN¾JOURNAL ENTRIES

General Ledger      Subsidiary Ledger

Debits Credits Debits   Credits   

General Fund:

1. ESTIMATED REVENUES 2,774,000

APPROPRIATIONS 2,693,000

BUDGETARY FUND

BALANCE 81,000

Estimated Revenues Ledger:

TAXES 1,943,000

LICENSES AND PERMITS 372,000

INTERGOVERNMENTAL

REVENUE 397,000

MISCELLANEOUS REVENUES 62,000

Appropriations Ledger:

GENERAL GOVERNMENT 471,000

PUBLIC SAFETY 886,000

PUBLIC WORKS 650,000

HEALTH AND WELFARE 600,000

MISCELLANEOUS 86,000

General Ledger   Subsidiary Ledger

  Debits Credits   Debits Credits

  General Fund:

2. ENCUMBRANCES¾2020 931,000

ENCUMBRANCES

OUTSTANDING¾2020 931,000

Encumbrances Ledger—2020:

GENERAL GOVERNMENT 58,000

PUBLIC SAFETY 250,000

PUBLIC WORKS 392,000

HEALTH AND WELFARE 160,000

MISCELLANEOUS 71,000

General Fund:

3. TAXES RECEIVABLE¾

CURRENT 2,005,000

ALLOWANCE FOR

UNCOLLECTIBLE

CURRENT TAXES 65,000

REVENUES 1,940,000

Revenues Ledger:

PROPERTY TAXES 1,940,000

Governmental Activities:

TAXES RECEIVABLE¾

CURRENT 2,005,000

ALLOWANCE FOR

UNCOLLECTIBLE

CURRENT TAXES 65,000

GENERAL REVENUES—

PROPERTY TAXES 1,940,000

  General Ledger Subsidiary Ledger

Debits    Credits    Debits    Credits

General Fund and Governmental Activities:

4. CASH 1,591,000

TAXES RECEIVABLE---

DELINQUENT 132,000

TAXES RECEIVABLE---

CURRENT 1,459,000

  General Fund:

5. EXPENDITURES-2020 1,750,100

VOUCHERS PAYABLE 1,750,100

Expenditures Ledger—2020:

GENERAL GOVERNMENT 411,000

PUBLIC SAFETY 635,000

PUBLIC WORKS 254,000

HEALTH AND WELFARE 439,000

MISCELLANEOUS 11,100

Governmental Activities:

EXPENSES—GENERAL

GOVERNMENT* 422,100

EXPENSES—PUBLIC SAFETY 635,000

EXPENSES—PUBLIC WORKS 254,000

EXPENSES—HEALTH AND

WELFARE 439,000

VOUCHERS PAYABLE 1,750,100

*Miscellaneous items are included in General Government

  General Fund:

6. ENCUMBRANCES

OUTSTANDING—2019 14,000

ENCUMBRANCES—2019 14,000

  General Ledger Subsidiary Ledger

Debits    Credits Debits    Credits

Encumbrances Ledger¾2019:

PUBLIC SAFETY 14,000

EXPENDITURES-2019 14,000

EXPENDITURES-2020 470

VOUCHERS PAYABLE 14,470

Expenditures Ledger-2020:

PUBLIC SAFETY 470

Expenditures Ledger-2019:

PUBLIC SAFETY 14,000

Governmental Activities:

EXPENSES—PUBLIC SAFETY 14,470

VOUCHERS PAYABLE 14,470

General Fund:

7. ENCUMBRANCES—

OUTSTANDING—2020 851,200

ENCUMBRANCES—2020 851,200

Encumbrances Ledger—2020:

GENERAL GOVERNMENT 52,200

PUBLIC SAFETY 240,900

PUBLIC WORKS 357,000

HEALTH AND WELFARE 130,100

MISCELLANEOUS 71,000

EXPENDITURES¾2020 850,500

VOUCHERS PAYABLE 850,500

General Ledger Subsidiary Ledger

Debits    Credits Debits    Credits   

Expenditures Ledger—2020:

GENERAL GOVERNMENT 52,700

PUBLIC SAFETY 236,200

PUBLIC WORKS 360,000

HEALTH AND WELFARE 130,600

MISCELLANEOUS 71,000

Governmental Activities:

EXPENSES—GENERAL

GOVERNMENT 123,700

EXPENSES—PUBLIC SAFETY 236,200

EXPENSES—PUBLIC WORKS 360,000

EXPENSES—HEALTH AND

WELFARE 130,600

VOUCHERS PAYABLE 850,500

General Fund:

8. CASH 839,000

REVENUES 839,000

Revenues Ledger:

LICENSES AND PERMITS 373,000

INTERGOVERNMENTAL REVENUE 400,000

MISCELLANEOUS REVENUES 66,000

  

  General Ledger   Subsidiary Ledger

Debits    Credits Debits    Credits   

Governmental Activities:

CASH 839,000

PROGRAM REVENUES—

GENERAL

GOVERNMENT—

CHARGES FOR SERVICES 373,000

PROGRAM REVENUES—

PUBLIC SAFETY—

OPERATING GRANTS

AND CONTRIBUTIONS 400,000

GENERAL REVENUES—

MISCELLANEOUS 66,000

General Fund and Governmental Activities:

9.    VOUCHERS PAYABLE 2,505,000

CASH 2,505,000

The Governmental Activities ledger is not shown here.

CITY OF EVERGREEN

GENERAL FUND

REVENUE LEDGER (NOT REQUIRED)

	ESTIMATED REVENUES	REVENUES	BALANCE Debit (Credit)
	TAXES
1	1,943,000		1,943,000
3		1,940,000	3,000
	LICENSES AND PERMITS
1	372,000		372,000
8		373,000	(1,000)
	INTERGOVERNMENTAL REVENUE
1	397,000		397,000
8		400,000	(3,000)
	MISCELLANEOUS REVENUES
1	62,000		62,000
8		66,000	(4,000)

GENERAL FUND

APPROPRIATIONS/ENCUMBRANCES/EXPENDITURES LEDGER

(NOT REQUIRED)

TRANSACTION APPROPRIATION ENCUMBRANCE EXPENDITURE BALANCE

   GENERAL GOVERNMENT______   

1 471,000 471,000

2 58,000 413,000

5 411,000 2,000

7 (52,200) 52,700 1,500

   PUBLIC SAFETY_____ _

1 886,000 886,000

2 250,000 636,000

5 635,000 1,000

6 (Note A) 470 530

7 (240,900) 236,200 5,230

   PUBLIC WORKS______   

1 650,000 650,000

2 392,000 258,000

5 254,000 4,000

7 (357,000) 360,000 1,000

   HEALTH AND WELFARE_______   

1 600,000 600,000

2 160,000 440,000

5 439,000 1,000

7 (130,100) 130,600 500

   MISCELLANEOUS ________      

1 86,000 86,000

2 71,000 15,000

5 11,100 3,900

7 (71,000) 71,000 3,900

The Public Safety account shown here is for 2020. In addition, a credit of $14,000 would be made to the Public Safety subsidiary account for 2019, at which time that account would be placed in the “dead file” with other 2019 subsidiary accounts that had been retired at the end of that fiscal year.

b.

CITY OF EVERGREEN

GENERAL FUND

BUDGETARY COMPARISON SCHEDULE

FOR THE YEAR ENDED DECEMBER 31, 2020

VARIANCE

BUDGET WITH FINAL

(ORIGINAL BUDGET

AND OVER

FINAL) ACTUALA   (UNDER)

REVENUES:

TAXES $1,943,000 $1,940,000 $ (3,000)

LICENSES AND PERMITS 372,000 373,000 1,000

INTERGOVERNMENTAL REVENUE 397,000 400,000 3,000

MISCELLANEOUS REVENUES 62,000    66,000    4,000

TOTAL REVENUES 2,774,000 2,779,000 5,000

EXPENDITURES (BUDGET BASIS):

GENERAL GOVERNMENT 471,000 469,500 (1,500)

PUBLIC SAFETY 886,000 880,770 (5,230)

PUBLIC WORKS 650,000 649,000 (1,000)

HEALTH AND WELFARE 600,000 599,500 (500)

MISCELLANEOUS 86,000 82,100 (3,900)

TOTAL EXPENDITURES    2,693,000 2,680,870    (12,130)

EXCESS OF REVENUES OVER

EXPENDITURES 81,000 98,130 17,130

INCREASE IN ENCUMBRANCES

OUTSTANDINGB -0- 65,800 65,800

INCREASE IN FUND BALANCES 81,000 163,930 82,930   

FUND BALANCES, 1/1    96,900 96,900 - 0 -

FUND BALANCES, 12/31   $ 177,900   $ 260,830 $ 82,930

A The actual expenditures in this statement include encumbrances of 2020 appropriations outstanding at year-end, but do not include the expenditures of the 2019 appropriations recorded in Entry 6.

B Fund balances do not include encumbrances. Therefore, the $79,800 of encumbrances that were included as part of actual expenditures for budgetary comparison purposes must be added back to ensure they do not affect fund balances. However, $14,000 of the expenditures made during the year for goods received in 2020 that were ordered in 2019 were reported as expenditures of the current year for GAAP purposes and therefore reduced fund balances by that amount. Thus, the change in fund balances must be adjusted for that amount as well.