16 Feb ACC515: Non-Profit and Governmental Accounting
Problem 1: Assessing Government’s Financial Conditions
The following information was taken from the CAFRs of two cities of approximately the same
size in the same state.
Lake Grove Lake Meade
(dollar amounts in thousands)
Population 92,000 96,000
Number of employees 1,050 1,420
Total operating revenues $120,000 $170,000
Property Tax levy 83,000 102,000
Total operating expenditures 112,000 174,000
Cash, investments and receivables 27,000 15,000
Current liabilities 9,000 12,000
Unassigned general fund balance 7,000 1,000
General obligation debt 21,000 32,000
Total appraised value of property 965,000 1,620,000
Requirements:
1. Compare the financial condition of the two cities based on the following indicators:
a. Per capita operating expenditures
b. Per capita general obligation debt
c. Operating surplus (deficit)
d. Liquid assets/current liabilities
e. Unassigned general‐fund balance/total operating revenues
f. Per capita number of employee
2. Compare the financial condition of the two cities based on the following additional
measures:
a. Operating revenue/total appraised value of the property
ACC515: Non-Profit and
Governmental Accounting
Unit 5 Assignment
b. Property taxes/total appraised value of the property
c. Per capita total appraised the value of the property
Problem 2: Which not-for-profit is more fiscally sound?
Visit GuideStar at www.guidestar.org. Select two organizations that have a similar mission and
are of relatively similar size (e.g., Parkinson’s Disease Foundation and American Parkinson
Disease Association).
Let’s assume that you are a financial analyst for a foundation, and you are concerned with the
long-term fiscal viability of the two entities.
Requirements:
1. Compare the two as to:
a. The proportion of resources directed to fund-raising
b. The proportion of resources directed to program activities
c. Percentage of revenues from contributions and grants
d. Percentage of revenues from user charges and other sources
e. Short-term liquidity
f. The burden of debt
g. Adequacy of fiscal resources
h. Current fiscal performance
2. Discuss your findings by commenting on which appears to be more fiscally sound.
Instructions:
Answer all the questions completely showing your solutions in completing all the
requirements as stated at the end of each problem above.
Requirements:
When preparing your responses, indicate the problem that you are writing a response
on.
Use spreadsheets using MS Excel and create a workbook to respond to the problems.
Create a separate worksheet for each problem and label each tab properly.
If narratives are required to complete your answer, submit them as an MS Word
document.
Be sure to read the criteria below, by which your paper/project will be evaluated,
before and after completing the project.
Evaluation Rubric for Unit 5 Assignment
Criteria Exemplary Proficient Development
Needed
Deficient
50 points 40 – 49 points 29 – 39 points 0 – 28 points
Problem #1 Answered
completely.
Writes clearly
using concise
language and
almost entirely
free from spelling
errors. As
applicable in the
assignment, all
sources are
properly cited
and observes
APA format
Answer missing
minor details.
Writes clearly
with some
grammatical, and
spelling errors
but doesn’t
impede
understanding.
As applicable in
the assignment,
most sources are
properly cited
and observes
APA format
Answer missing
key details.
Does not write
clearly with
numerous
grammatical and
spelling errors.
As applicable in
the assignment,
sources are not
cited or are cited
incorrectly and
inconsistent in
observing APA
format.
Missing or
inadequately
answered.
Does not write
clearly with
unacceptable
grammatical and
spelling errors.
As applicable in
the assignment,
sources are not
cited and does
not observe APA
format.
50 points 40 – 49 points 29 – 39 points 0 – 28 points
Problem #2 All parts
answered
completely.
Writes clearly
using concise
language and
almost entirely
free from spelling
errors. As
applicable in the
assignment, all
sources are
properly cited
and observes
APA format
Most parts
answered
completely;
missing minor
details.
Writes clearly
with some
grammatical, and
spelling errors
but doesn’t
impede
understanding.
As applicable in
the assignment,
most sources are
properly cited
and observes
APA format
Some parts
answered
completely;
missing key
details.
Does not write
clearly with
numerous
grammatical and
spelling errors.
As applicable in
the assignment,
sources are not
cited or are cited
incorrectly and
inconsistent in
observing APA
format.
Missing or
inadequately
answered.
Does not write
clearly with
unacceptable
grammatical and
spelling errors.
As applicable in
the assignment,
sources are not
cited and does
not observe APA
format
