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Cafr Analysis

In: Business and Management

Submitted By kaboose2002
Words 669
Pages 3
TO: TO WHOM IT MAY CONCERN
FROM:
SUBJECT: CITY OF DENVER CO, CAFR, ANALYSIS OF MD&A
DATE:

The following memo highlights 4 interesting aspects of the Comprehensive Annual Financial Report of the City of Seattle Washington for Calendar Year January 1st – December 31st 2009. The complete report can be found following this link: http://www.seattle.gov/cafrs/2009/default.htm 1. On page #2 (and on the relevant statements on pages 10 and 11) of the Management’s Discussion and Analysis, it is noted that the fund financial statements are broken down by governmental funds, proprietary funds, and fiduciary funds. The governmental funds are broken down into general, special revenue, debt service, capital projects and permanent funds. It is interesting to note that the city of Seattle has identified 3 major governmental funds that are presented separately in the governmental funds balance sheet and statement of revenues, expenditures, and other changes in fund balances. The major funds are the General Fund, Transportation Fund, and Low-Income Housing Fund. The general fund should always be reported as a major fund. Other individual funds should be reported as major funds if, 1) total assets, liabilities, revenues, expenditures of that fund are at least 10% of the corresponding total for all funds of that category and 2) total assets, liabilities, revenues, expenditures of that fund are at least 5% of the corresponding total for all governmental and enterprise funds combined. For example, the total assets for the transportation fund of $57,493 are at least 5% of the total assets of $1,048,526 for all funds combined.
2. The city has numerous proprietary funds that account for governmental activities similar to activities a “for profit” organization reports. These types of funds or activities typically charge user fees or cost to the citizens. They are reported as...

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