Mustang Village had unassigned fund balance of $4,200,000; assigned fund balance of $1,400,000, restricted fund balance of $2,200,000, and nonspendable fund balance of $800,000 at the end of its current fiscal year. The assigned fund balance is not appropriated to balance next year's budget. Mustang Village had total revenues in its General Fund of $28,000,000 and total expenditures to $27,800,000. It also has recurring transfers in of $1,800,000 from its Electric Utility Enterprise Fund. What is Mustang Village's budgetary cushion for its General Fund for the current year?

Question

Quizplus · Accepted Answer

The budgetary cushion is:
 11ee3ffc_f3a8_36b5_93d2_79f76fe8cb1d_TBCB1000_00 We define "available fund balance" as the total of unassigned and assigned fund balance, adjusted as follows: (a) minus any assigned fund balance appropriated to balance next year's budget and (b) plus any fund balance formally established by the government specifically to meet emergency needs that are classified as "committed" for financial reporting purposes. In this question, available fund balance is $5,600,000 (unassigned fund balance of $4,200,000 plus assigned fund balance of $1,400,000).
In this case, the calculation of the General Fund's budgetary cushion is:
 11ee3ffc_f3a8_36b6_93d2_b7f262e0c726_TBCB1000_00 The answer is 18.8% or rounded to 19%.

Mustang Village Had Unassigned Fund Balance of $4,200,000; Assigned Fund