A close look at the last 5 budgets shows a surprising similarity...year after year (formula: Budget - Personnel Services = Reserves...or Maintenance/Operations + Contract Services)
Standard Govt Accounting Procedures Expenses Government accounting recognizes expenses when they create a decrease in current resources. Most agencies and municipalities have a cash reserve on hand in order to pay expenses. As this cash balance goes down, each expense relating to this drain is recognizable. This recognition process creates a more understandable set of financial information so a performance review or trend analysis can quickly show when the agency or municipality spent money.
YOU BE THE JUDGE! Highlight in attached file
