Problem
Often, part of a government agency's budget is devoted to capital projects. No matter how well a project and its costs are planned for, there are always residual effects on the budget and on future budgeting practices. In this assignment, you'll overview a government agency's project, including its effects on the agency's budget, and you'll consider practices and requirements to support accurate reporting of projects.
Research a state or local government capital project (e.g., new building or structure, park improvements, road improvements, addition to a municipal building), the agency that is responsible for the project, and the operating budget for the agency.
Address the following in your paper or presentation:
1. Give a brief overview of the chosen government capital project and of the agency responsible (i.e., size and responsibilities).
2. Explain the advantages, disadvantages, and residual effects of the project on the agency's operating budget.
3. How does the project affect the debt in the short and long term?
4. How does the project affect operating expenses in the short and long term?
5. Explain how the operating expense for the project differs from government debt items.
6. Identify how the agency included training resources in their budget for the project. If they did not include training resources, propose how the agency could or should address training in their budget.
7. Describe any evidence that the agency employed accurate reporting practices for the project. Would you suggest any differences in their approach? If accurate reporting practices are not evident, what should the agency do to ensure accurate reporting?
8. Summarize your findings about the effects of the capital project on the operating budget, and make recommendations for improvement.