Managerial Accounting Journal Example Essay

The Board of Aldermen of the Hayville approved the Appropriations budget for its General Fund for the year ending December 31 as shown below.1) Explain the statutory significance of an annexation and why auditors engaged for a financial and compliance audit need to know the meaning of the term.An annexation is an authorization for administrators to incur on behalf of the governmental unit liabilities in the amounts condition in the appropriation ordinance or statute, for the trains set forth in that ordinance or statute, during the period of time undertake. The auditor must movement to ascertain that there were no material expenditures in violation of the appropriation ordinance or resolution.2) It is illegal for a governmental unit to spend money for any purpose unless a valid appropriation for that purpose exists. Does this legal rule assure good financial management for from each one governmental unit? Why or why not? non necessarily. If the appropriation budget is prepared mechanically (with very little sight as to what services should be rendered and how the services should be delivered) adhering to the budget may be poor financial management. On the other hand, if the budget relates foreplay of resources to output of services, that have been well planned to meet clearly specified objectives, adhering to the budget should be good financial management.4) Illustrate a conformation of Appropriations, Expenditures, and Encumbrances subsidiary ledger account that would provide the information needed by a government finance director to make sure legal requirements concerning appropriations are complied with.Students should present a form similar to Illustration 3-7 (in the text) in answer to this requirement.(Wilson and Kattelus, 2003, p. 76)