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Beginning and Ending Fund Balances. The following information is provided about the Village of Wymette’s General Fund operating statement and budgetary accounts for fiscal year ended June 30, 2010. Estimated revenues - $3,150,000 Revenues – 3,190,000 Appropriations – 3,185,000 Expenditures – 3,175,000 Fund balance (beginning of year) – 580,000 Budgetary fund balance (after FY 2010 Budget was recorded) – (35,000)
Required:
a) Did the Village of Wymette engage in imprudent budgeting practice by authorizing a greater amount of expenditures than revenues estimated for the year, or potentially violate village or state balanced-budget laws?
b) Calculate the end-of-year balanced for the Fund Balance and Budgetary Fund Balance accounts that would be reported on the Village’s balance sheet prepared as of June 30, 2010. Show all necessary work.
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