Wednesday, May 25, 2011

Rashad Young on City of Greensboro Coliseum Accounting

"...there have been several news reports that compare the General Fund Budget reductions
to the All Funds Budget
and confuse how $13 million in budgetary solutions [cuts?]
can yield an increase to the budget of $8 million.

...The All Funds Recommended Budget shows an increase from the FY 10-11

...This change is exclusively due to an accounting change
that requires the City to report the revenue and expense
for events at the War Memorial Coliseum.

Who required it?

Why did who require it?

Historically, the City only accounted for the Net Revenue.


For instance, if a Concert cost $100,000
but brought in $110,000 in revenue,
the City only accounted for the net of those two figures or $10,000.

Going forward, the City is required to account
for the Revenue of $110,000 and the Expenditure of $100,000.

If $110,000 - $100,000 = $10,000,
how did $13 million turn into $25 million?

How can revenues be higher than expenses,
if the Greensboro Coliseum runs an annual deficit?

How much is the Coliseum actually losing?

This change does not provide more funds for the Coliseum to operate,
it just accounts the receipt of the total revenue and the total expense
for events and our budget has to reflect this change."


Rashad M. Young
City of Greensboro Manager
May 20, 2011, to the Mayor and City Council

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