Becoming Familiar with a Local Government’s Comprehensive Annual Financial Re...

Becoming Familiar with a Local Government’s Comprehensive Annual Financial

Report (CAFR)

Using the Internet, find the comprehensive annual financial report (CAFR) of a local government selected by your instructor. At a minimum, a CAFR includes (1) MD&A, (2) the basic financial statements—government-wide and fund-based financial statements, (3) notes to the basic financial statements, (4) RSI, and (5) the external auditor’s opinion on the basic financial statements.

Required

Using the CAFR chosen by your instructor, answer the following questions that relate to the overall government and to the governmental funds:

a. Read the section of the report that contains MD&A. Is your government a general-purpose government?

If yes, what types of services does it provide?

b. What type of opinion did the external auditor give on the basic financial statements? What responsibility did the auditor take with regard to MD&A and the other RSI?

c. Examine the financial statements for the funds. List the fund types your government uses.

d. From reading the notes that follow the government-wide and fund-based financial statements, what are the measurement focus and basis of accounting the governmental funds use?

e. List the government’s financial statements that use the economic resources measurement focus and the accrual basis of accounting.

f. In addition to the general fund, list your government’s other major governmental and proprietary funds.

g. Examine the government-wide financial statements. List any component units over which your government has fiscal accountability.

h. Examine the balance sheet of the governmental funds. What are the total assets and the total fund balance as of the most recent balance sheet date? How much of the total fund balance is assigned?

i. Examine the statement of revenues, expenditures, and changes in fund balance for the most recent year. How much of the total revenue came from taxes?

j. Examine the statement of revenues, expenditures, and changes in fund balance for the most recent year. How are expenditures classified?

k. Examine the statement of revenues, expenditures, and changes in fund balance for the most recent year. How much of the other financing sources resulted from transfers in?

l. Examine the statement of revenues, expenditures, and changes in fund balance for the most recent year. List any special items reported. What was the increase or decrease in fund balance for the year?