Question

All applicable Exer Exercises and Problems connect Allanolicable Exercises and Problems are available with Connect. 17. Examine the CAFR. (LO1-4) Download a copy of the most recent compre hensive annual financial report (CAFR) for a city of your choice. Many cities with 25.000 or more population provide Internet access to their CAFRS.. Familiarize yourself with the city's CAFR and reread the section in this chapter titled "Financial Reporting of State and Local Governments." Be prepared to discuss in class the items suggested below. a. Introductory Section What has the city included in the introductory section of its CAFR? Does it include the items identified in the section of the text titled "Comprehensive Annual Financial Report"? b. Financial Section (1) Audit Report. Are the financial statements in the report audited by an independent CPA, state auditors, or auditors employed by the govern- ment being audited? Does the audit indicate that the financial state- ments were prepared in accordance with GAAP? Has the city received an unmodified audit report? (2) Basic Financial Statements. Does the CAFR contain both government wide financial statements and fund statements? How many financial statements have been included as part of the basic financial statements section of the CAFR? (3) Notes to the Financial Statements. How many notes follow the required basic financial statements? Is there a phrase at the bottom of the basic financial statements indicating that the notes are an integral part of the financial statements? (4) Other Supplementary Information. Following the notes to the financial statements, does the CAFR provide other supplementary information, such as combining and individual fund statements? (5) Management's Discussion and Analysis (MD&A). Does the CAFR con- tain an MD&A? If so, where is it located and what type of information does it contain? c. Statistical Tables What information has been included in this section of the CAFR? You can usually access a cty's CAFR by doing a search on "City of name and looking for city's departmente

Answer 1

a. Introductory document has transimittal letter.

Transmittal Letter to Governer of the state covers about the CAFR of the state **** for the fiscal year ended ***.

>Responsibility for the completeness and reliability rests with the state.

>Statutory Auditors openion

>Reference to MD&A and basic financial statements

>Profile of State,Governmental STructure,Budget Cycle,types of services proovided by reporting entity,

>Economic and Revenue Outlook

>Major Initiatives (Education,economy,safety,Environment and energy)

>Awards and Acknowledgements

b.Financial Section

Audit Report

a)The financial statement are audited by the state auditor

b)Yes,it has followed GAAP

c)Yes,the state received unmodified opinion

Financial Statement

Yes it contain both Government wide and fund financial statements.

It speaks about the financial statements for a particular period (one)

Notes to Financial Statement

There are 16 notes .

Yes,notes to account forms integral part of financial statements

Other Supplementary information

Supplementary information covers

Budgetary Comparison schedule for year ended ****

Pension Plan Information (Last five years measurement)

Other Post Employment Benefit Information

Infra structure assets reported using modified approach

Managament Discussion and Analysis.

This is reported under Financial Section

It spoke about performance of business,business highlights,over view of performance as a whole.

C.Statistical Tables

Financial Trends.

These schedules contain trend information to help the reader understand how the state’s financial performance and fiscal health has changed over time.

Revenue Capacity

These schedules contain information to help the reader assess the state’s most significant revenue sources: Retail sales tax and business and occupation tax.

Debt Capacity

These schedules present information to help the reader assess the affordability of the state’s current levels of outstanding debt, and the state’s ability to issue additional debt in the future.

Demographic Information.

These schedules offer demographic and economic indicators to help the reader understand the environment in which the state’s financial activities take place.

Operating Information.

These schedules offer operating data to help the reader understand how the information in the state’s financial report relates to the services it provides and the activities it performs.

Changes in net position of last 10 fiscal years,uses of funds,

For the above study,2018 comprehensive financial statements of state of washington is referred