I am taking Finance and Budget Management as part of my Public Administration de

I am taking Finance and Budget Management as part of my Public Administration degree requirement. This is Part 3 of a Local Budget Report assignment and these are the full details. You must use the 2022 Arkansas City, KS budget sheet and ACFR, as well as past year ones to find answers. Just Part 3. This is the prompt:
The third part of the project is a financial health assessment. It allows you to utilize information beyond what is commonly found in the budget document. By this point in the course, you are very familiar with the annual operating budget and how it presents the financial plan for the upcoming fiscal year. As you know, there are voluntary guidelines that can be used to produce budget documents, namely GFOA’s distinguished budget presentation award program, but there are no mandated national standards or even generally accepted budget principles. However, at the end of the fiscal year, all the states and most local governments prepare financial statements in accordance with generally accepted accounting principles (GAAP). External auditors are engaged to test these management-prepared financial statements and to issue an opinion that the financial statements are fairly presented in conformity with GAAP. The resulting document is termed the Annual Comprehensive Financial Report (ACFR). In this third part of the project, you will combine information from the ACFR with data from the annual operating budget to complete a financial health assessment of the city. Make sure that the ACFR and the annual budget both focus on the same fiscal year. Use data from previous annual operating budgets and ACFRs to support your analyses as needed. In addition, use data from more recent annual operating budgets and ACFRs to support your assessments. Your analysis of financial health will rely on a combination of ratios that assess financial situation and financial condition: financial situation or position describes a government’s finances at a specific point in time (e.g., at the end of the fiscal year), whereas financial condition considers the government’s finances over time (e.g., over the medium-term or long-term). Financial situation analysis uses a combination of ratios, including common size ratios, liquidity ratios, solvency ratios, and profitability ratios, to describe a government’s finances at a specific point in time, and these same ratios when considered over the medium or long-term can also explain financial condition of the government. Additionally, financial condition analysis uses a set of indicators (e.g., debt burden, risk exposure factor, etc.) that measure whether a government will be able to meet both its financial obligations and constituent service obligations currently and in the future. Analysis of financial condition also includes a broader array of economic, political, social, and demographic considerations

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