The City of Henderson Reported a Change in Fund Balances

question 37

Essay

The City of Henderson reported a change in fund balances of $2,267,000 in its governmental funds Statement of Revenues,Expenditures,and Changes in Fund Balances for the year ended December 31,2015. In addition,the following information is relevant:
A.Capital outlay expenditures amounted to $8,755,000 in the modified accrual statement. General government capital assets amounted to $90,000,000,excluding land and had an average life of 20 years.
B.The modified accrual statement reported proceeds from the sale of land in the amount of $500,000. The land had a basis of $390,000.
C.Property taxes had been levied in the amount of $10,000,000. It was estimated that 3% would never be collected,that $500,000 would be collected within 60 days of year-end,and that $217,000 would be collected more than 60 days from year-end. The City had recognized the maximum permitted under modified accrual accounting.
D.$205,000 of property taxes had been deferred at the end of the previous year and was recognized under modified accrual as revenue in the current year.
E.The modified accrual statement reflected debt service expenditures in the amount of $500,000 for interest and $612,000 for principal. No adjustment was necessary for interest accruals at year-end.
F.Long term compensated absences liabilities increased $120,000 from the previous year.
Required:
Prepare a reconciliation from the change in fund balances reported above to the change in Net Position in the governmental column in the government-wide Statement of Activities for the year ended December 31,2015.

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Definitions:

SSR

Stands for Sum of Squares due to Regression, which quantifies the variation explained by the regression model, comparing the estimated values to the mean of the dependent variable.

SST

Total sum of squares in statistical analysis, representing the total variation in the observed data relative to the mean.

Multiple Linear Regression

A statistical technique that models the relationship between a dependent variable and two or more independent variables by fitting a linear equation to observed data.

Partial Regression Slope Coefficients

Quantitative measures in multiple regression models that represent the rate of change in the dependent variable for one-unit change in the predictor variable, holding other variables constant.