when setting up the constitutional
amendment in 1992 and we can, and
usually do, over-rule the safeguards.
including three years of federal stimu-
lus funding have increased by about
five percent. Spending during that
same period has increased 28 per-
cent. We "balanced" the budget by
taking out more debt, delaying
required pension payments, and using
the rainy day fund. The federal stimu-
lus funding ends on June 30, 2011.
The debt payments begin on July 1,
2011. We are at the edge of a tremen-
dous funding cliff.
Connecticut Office of Fiscal Analysis,
at June 30, 2014 our fund balance (the
measure of working capital) will be
This is 55 percent of our annual expen-
ditures. This means that, if we don't
pay any bills for the next fiscal year so
we use that year's money to pay our
June 30, 2014 bills, we will need to wait
until January 2015 to start paying our
July 1, 2014 payroll and bills.
ise and credibility as certified public
accountants lies in the analysis of the
financial statements. For the greatest
impact, we want to limit our recom-
mendations to that area. We are rec-
budgeting. It is important to note that
in a government, both the full accrual
ing can be considered GAAP. We are
asking for the full accrual basis.
accrual basis, the biggest change
would be converting our expenditures
from a cash basis to an accrual basis.
Payments toward the pension and
OPEB liabilities would still be based on
the cash paid and not the actuarially
required contribution (ARC). Debt
would still be considered income.
basis would be the best indication of
how we are progressing for our long-
term health. (We understand that this
will need to be phased in to comply
with the balanced budget require-
ments in our state constitution.)
administrative assistant at Norwich Community Development Corporation (NCDC), as registrants arrive.