Yorba Linda Essay

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Question 1 (a): Does the city of Yorba Linda’s current budgeting process meet the goals set of it?

No, the city of Yorba Linda’s current budgeting process does not meet the goals set of it. As mentioned, Mr. Simonian had three basic goals for the city's budgeting process which are intended to provide a forum for discussion that lead to the establishment of good city policies and priorities.

First, he wanted the budget to be easy for City Council members to understand. As stated in the case, Yorba Linda council members had little or no formal training in public administration or policy. This shows that they do not have proper background to do administration as well as basic accounting understanding to perform finance related matter.
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If there is any objection, this is when discussion is opened for anyone to express opinions as to why he or she does not agree or agrees with the decision. During this session, all the strengths and weaknesses of an idea can be argued by the members in order to assist in making good decision.

In referring to the case, Mr. Simonian budget was initially approved with four favorable votes and only one objection by John Gullixson. Mr. Gullixson disagreed on the increment of the cost of police services. Out of concern, he voiced out that Brea police personnel were overpaid through the contract. However, Mr. Simonian countered that Yorba Linda's police costs were low in comparison with most other cities in Orange Country since it does not have to employ full-time detectives as well as to cover all the overhead costs associated if Yorba Linda is to own a police force. Consequently, the budget was approved and adopted with four favorable votes and with Mr. Gullixson abstaining.

This clearly shows that, even though the budget was not unanimously approved by all the council members, it does not give bad reputation to the city manager and the staff as well as to the budgeting process. Somehow, it provides a platform to discuss on which decision is much better.

Question 2 (a): What is fund accounting.

Fund accounting is an accounting system emphasizing on accountability rather than profitability. It is normally used by
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