Computerized Accounting System—Departmental Budgetary Comparison Report. Review the computer generated budgetary comparison report presented below for the Lincoln City Parks and Recreation Department as of July 1 of its fiscal year ending December 31, 2010, and respond to the questions that follow.

LINCOLN CITY FY 2010 Detail Report, Departmental Expenditures
Run date: July 1, 2010
08-00 Parks and Recreation Department
Account Number	Account Title	FY 2010 Budget	Expenditures 2010 to Date	Encumbrances Outstanding	Available Appropriations
01 08-00 6110	Personnel Services	$1,172,661	$533,472	$ 0	$639,189
01 08-00 7110	Materials and Supplies	376,457	207,683	27,424	141,350
01 08-00 7210	Conferences and Training	3,800	1,426	0	2,374
01 08-00 7310	Contractual Services	276,840	102,687	89,642	84,511
01 08-00 7410	Utilities	192,248	98,249	0	93,999
01 08-00 7810	Capital Outlay	57,924	21,387	3,600	32,937
01 08-00 7910	Other	248,673	172,538	6,742	69,393

Required

a. Explain the account code structure being employed by Lincoln City. Does that structure appear consistent with the expenditure classifications required by GASB standards? Does it allow for more detailed expenditure classifications, if desired? For example, could materials and supplies be further classified as recreational supplies, office supplies, building supplies, and so forth?

b. What is the likely reason there are no outstanding encumbrances for the Personnel Services, Conferences and Training, and Utilities accounts?

c. Does it appear that the Parks and Recreation Department may over expend its appropriation for any accounts before the end of FY 2010? If so, which accounts may run short?

d. Does it appear that the Parks and Recreation Department may under expend any of its appropriations for FY 2010? If so, which accounts may have excessive spending authority?

e. What factors may explain the expenditure patterns observed in parts c and d?

View less »