Larry, a resident of Jefferson County, Alabama, was bemoaning the sewerage charges on his latest water bill. A large portion of this was due to the County's attempts to update the sewer system to meet current standards after being sanctioned by the U.S. Environmental Protection Agency back in the mid 1990's. Another annual increase of 10% right after the implementation of an “education tax” that effectively doubled the county’s sales tax rate had Larry quite angry.
Larry discussed his frustration with his sister, who decided to investigate the financial reports of the County herself.
This descriptive case is appropriate for Governmental Accounting both at the undergraduate and graduate level. It could also be used in Advanced Financial Accounting, if governmental accounting is included there instead of in a separate course.