1. During a heated campaign for mayor of Morganville an unsuccessful candidate boasted that he would %u201Cdo away with all the special
interests in government. I will abolish all of the Special Revenue Funds and merge that money with the general operating resources of the city.%u201D You are
the successful candidate in that race and now the local press is pressuring you to respond to the campaign promise of that other candidate. How would you
respond to the press?
2.
The newly elected mayor of Wherever noticed that in the recently enacted budget of that city%u2019s General Fund revenues
exceed expenditures by $15000. Later that year after a hurricane caused a large amount of damage she ordered the city%u2019s finance officer to write a
check for $15000 on the General Fund to an emergency relief fund. Because of the unexpected nature of the hurricane no appropriation had been made to cover
this transaction. When confronted by the press she pointed out that the General Fund was only required under the balanced budget laws of the state to
%u201Cbreak even%u201D and that she could not in good conscience allow the city to retain idle monies when people needed help.
From an accounting standpoint did the mayor do the right thing? From an ethical standpoint?
Answers should be 4-5 sentences and MBA level