You will need to prepare a single-page report that summarizes the financial condition of the city government.2
Your report should provide an assessment of the citys
Strengths and weakness. What do the governments recent financial statements tell us about the organizations liquidity, profitability, and solvency position? Does it appear to have strong financial policies to guide future decisions? Does it appear to have sufficient financial reserves? Does it have a diversified revenue portfolio? Does it have a lot of debt, pension liabilities, or other long-term obligations? What impact has the COVID-19 pandemic had on its revenues, expenditures, and unassigned fund balance? Is the city reporting a negative unrestricted net position? Has it every reported a negative unassigned fund balance?
Resiliency to changes in the economy, policy, or environment. For example, how would lower than expected revenues, higher than expected expenditures, shifts in federal or state policy, growth in liabilities including recent and frequent use of long-term debt, or changes in underlying economic environment impact your organizations liquidity, profitability, or solvency position?
