Accounting Standards

CAFR Budget Analysis

(Town of Manchester Connecticut)

Manchester, Connecticut USA, a thriving small city in the growing eastern section of the Hartford region. The town is located in central Connecticut and is approximately 10 miles east of the City of Hartford, the State Capital. The towns of East Hartford, South Windsor, Vernon, Bolton and Glastonbury border the town. It is approximately 85 miles southwest of Boston and 115 miles northeast of New York City. The town encompasses 27.2 square miles and has a population of 57,079 people.

The town is independent full-service with political subdivision of the State of Connecticut and is autonomous from any county or other political subdivision of the State of Connecticut. It is incorporated in 1823 and in 1947 adopted a Council-Manager form of government. The legislative function is performed by the nine members of Board of directors, which is elected biennially. The board of directors formulates policies for the administration of the town. The general manager is appointed by the board of directors to serve as the Town's Chief Executive Officer with appointive and removal authority over department director and other employees of the town as well as responsible for the implementation of the established policies.

The Board of directors adopts both an annual operating and a six-year capital budget in accordance with the Chapter V of the Town Charter. Chapter V sets out the procedures and practices used during consideration of both the capital and operating budgets. The operating budget is legally enacted at the category level, but as a management tool budgeting control is maintained at the object of expenditure level. The accounting system is organized on a fund basis. Each fund is a distinct self -balancing accounting entity. And the various funds are further described in the Notes of the financial statements.

The budget is integrated into the accounting system and budgetary data, as presented in the financial statements for all funds with annual budgets compares expenditures with amended budgets. The accounting records for governmental and expandable trust funds are maintained on a modified accrual basis with revenues being recorded when measurable and available, and expenditures being recorded when services or goods are received and accepted the liability when incurred. The accrual basis of accounting is used for proprietary and certain fiduciary funds. Encumbrances outstanding at year-end are not recorded as expenditures as defined by generally accepted accounting principles (GAAP) and are excluded from liabilities.

Moreover, the accounting system of the Town of Manchester is dependent on a strong foundation of internal accounting controls to ensure that financial information generated is both accurate and reliable. The internal controls are designed to reasonably safeguard the Town's assets, check the accuracy and reliability of accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies.

The table below shows the Town's operating results and unreserved fund balance position for the past five years:

And the schedule below indicates budget of Manchester compared to the actual expenditure incurred for the FY 2005

Furthermore, the town provides a comprehensive range of municipal services including education, human services, public safety (including full-time paid fire and emergency medical rescue services), public works, recreation, library, landfill, water and sewer, cultural and historic activities, transportations, environmental and planning. Manchester has more than 1,000 acres of park land, a range of housing styles and prices in attractive neighborhoods, Manchester Memorial Hospital, Manchester Community College, an award-winning school