Ch. 2 Blog Entry

Ch.2 Blog
Money Remaining In BC Education Budget
No website!!! Ask Ms. Cloutier for details.

Summary
As is sat in my English class just days ago, who else would walk into class but Ms. Cloutier. After making small talk she went on to pull an unfortunate student out of the class, then went on to say she will be pulling more people shortly. Why was this happening so late in the year? Well, apparently the BC government had money left over from last years education budget and wanted to decrease class sizes by spending that money now to hire more English teachers (English classes are generally the largest). While many students were upset by the thought of being moved so late in the year, this may be a mistake that was made by our own government. It was said to us that the government only uncovered this money recently and decided to spend it on the overcrowding in classrooms.

Connections
How does this little financial upturn relate to this chapter? Well, this chapter is about the analysis of financial statements. When it comes down to it, someone overlooked a certain amount of money that was untouched. The government probably had a cash flow statement or balance sheet so they knew where the money in the budget was going, but there may be a possibility that an amount of money was not accounted for and just sat in the government’s pocket until someone dug it out. If someone had properly analyzed either document at the end of the fiscal period, they would have realized that there was a huge chunk of money remaining in the budget. Even in the worst scenario, the remaining money may be money that one unlucky school never received, but the mistake wasn’t caught because of poor analysis.

Reflection
When you look back on this event, this could have all been avoided if it was known simply how much money was remaining in the budget. When you reach this point in the school year, students have already adapted to their teachers. What the government is doing here is just dumping leftover money that should have already been accounted for on schools now. If the money had been accounted for earlier, then this change could have been at a sooner date, meaning that many students wouldn’t be inconvenienced. When it comes to money, it is important that you know not only where it’s coming from, but where it is going. Not to mention analyzing transactions to make sure that they have been recorded correctly and balance, so you always know where your money is, was, and should be.

C. Tut
FINAC12
Block A