For our Exam #3 you will perform an assessment of the City of Homer, Alaska CAFR using the ratios identified in Chapter 10. You will compute all the ratios for 2 comparative years, and provide a brief...

Illustration 10-3
            Illustration 10-3 Selected Financial Ratios Based on CAFR Governmental Funds Information
        S.no    Indicator    Computation    Year 2017    Year 2018    Interpretation
            Revenue Measures
        1    Revenue per Capita    Total Operating revenue    4,155,457    4,424,035    Here the Operating Revenue per capita is increasing. It is in increasing
                Population    740,000    735,000     trend the Government can maintain the existing service levels.
                    5.615482    6.019095
        2    Intergovernmental revenues    General fund Intergovernmental Revenues    1,025,798    941,257    In 2018 the Intergovernmental revenue fund and the General revenue
                Total General Fund Revenue    13,363,325    12,946,912    fund is less when compared with previous years. It is an indication that
                    0.076762    0.072701    Govenrment doesn’t depend on Revenues
            Expenditures Measure
        3    Expenditures per Capita    Total Operating Expenditure    6,413,603    5,889,758    In 2018 we see the decrease in operating expenditure and
                Population    740,000    735,000    decrease in population when compared with 2017.
                    8.667031    8.013276    So we are in safer hands to meet the per capita expenditure.
        4    Employees per Capital    Number of Municipal employees    3,330    6,137    When compared with 2017 the number of municipal employees is
                Population/(or households)    740,000    735,000    increased in 2018. Increased wages and employment opportunity
                    0.004500    0.008350    result in higher Employees per capita
            Operation Position Measures
        5    Revenue over Expenditure    Total Operating revenue    4,155,457    4,424,035    The operating revenue over expenditure is very weak. Even though
                Total Operating Expenditure    6,413,603    5,889,758    the revenue increased and expenditure decreased from previous
                    0.647913    0.751140    year. The overall expenditure is more than revenue so the expenses
                            has to be controlled to maintain stability
        6    Operating Surplus/deficit    General Fund Operating Surplus/Deficit 4    1,212,521    2,223,909    When compared with 2017, in the year 2018 the operating surplus
                General Fund Operating Revenues 2    13,363,325    12,946,912    is high. So the business is in safer hands.
                    0.090735    0.171771
        7    Fund Balances    General Fund Balances 5    -7,207,029    -7,155,081    The fund balance should always be less. Yes, there is decline in fund
                General F und Operating Revenues 2    13,363,325    12,946,912    balances. There is unassigned deficit which is being ca
ied forward
                    -0.539314    -0.552648    and showing General fund balance as deficit
        8    Liquidity    Cash and short−term investments    19,850,376    24,121,245    If the liquidity ratio is...