Governmental Ratios

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Author:
Seifer
ID:
150710
Filename:
Governmental Ratios
Updated:
2012-04-28 15:00:43
Tags:
Governmental Fund Accounting Non Profit Ratio Analysis
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Description:
Governmental and Non-for profit Accounting Ratio Analysis
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  1. Net Debt Per Capita

    General Obligation debt - Debt Service Fund balance/Population
    • -Found on Government wide and Governmental Statements
    • -Measures the ability of the citizens to pay general government debt
    • -high figure indicates that citizens bear an above-average burden
    • -below $1000 would indicate low fiscal stress
  2. Net Debt to Fair Value of Property

    General Obligation Debt - Debt Service Fund balance/Market Value of Property
    • -Government Wide and Governmental Statements
    • -Measures the ability of the government to pay its long-term debt based on the fair value of its property subject to tax
    • -High ratio indcates the possibility of stress
  3. Net Debt to Assets

    Governmental Activities:
    General Obligation Debt - DSF balance/Total Assets: Governmental Activities

    Business-type Activities:
    Debt from Business-type Activities (i.e. Revenue Bonds)/Total Assets: Business type Activities

    Primary Government:

    Total debt Primary Government - DSF balance/Total assets Primary Government
    • -Government-wide Statement of Net Assets
    • -Governmental Funds financial statements
    • - Governmental Activities
    • - Business-Type Activities
    • - Primary Government Activities

    -Measure of solvency
  4. Debt Service to Total Expenditures - General and Debt Service funds

    Principal and Interest Expenditure/Total Expenditures: General and DSFs

    • -Governmental Funds Financial Statements
    • (Statement of Revenues, Expenditures, and Changes in Fund Balance)

    -Measures the degree to which expenditures are tied up in debt service charges

    • - <=5% Low Carrying Charge
    • - =10% Moderate Carrying Charge
    • - >=15% High Carrying Charge
  5. Net Assets/Expenses

    Total net assets Governmental Activitites/Total expenses from Governmental Activities

    Total net assets Business-type Activities/Total expenses from Business-type Activities

    Total net assets Primary Government/Total expenses from Primary Government
    • -Government-Wide Financial Statements
    • - Statement of Net Assets
    • - Statement of Activities

    -Measure of overall financial position
  6. Unrestricted Net Assets/Expenses

    Unrestricted net assets Governmental Activities/Total expenses from Governmental Activities

    Unrestricted net assets Business-type Activities/Total expenses from Business-type Activities

    Unrestricted net assets Primary Government/Total expenses from Primary Government
    • -Government-Wide Financial Statements
    • - Statement of Net Assets
    • - Statement of Activities

    -more conservative measure of the availability of resources to meet expenses
  7. Unreserved Fund Balance/Revenues - General Fund

    General Fund unreserved fund balance/General Fund total revenues
    • -Governmental funds financial statements
    • -Balance Sheet (Governmental funds)
    • -Statement of Revenues, Expenditures and Changes in Fund balances

    • - Liquidity Measure
    • - > 8% is Strong
  8. Governmental Revenues Per Capita

    Total revenues Governmental Funds/Population
    -Governmental Funds financial statements

    -Measures the demand for services for a particular jurisdiction
  9. Interest Coverage-Revenue Bonds

    Operating income: Enterprise Funds/Interest Expense
    -Enterprise funds financial statements

    • - measure of an enterprise's ability to pay the interest on its enterprise debt
    • -Calculate ratio for each enterprise fund
  10. Operating Ratio - Enterprise Funds

    Operating expenses - Depreciation expense/Operating revenues
    -Enterprise fund financial statements

    - measure of the expense coverage of an enterprise, based on operations.

    - A high ratio indicates stress

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