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Comprehensive Annual Financial Report

In: Business and Management

Submitted By lgameros
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Comprehensive Annual Financial Report Briefing:
Each year the Los Angeles County Office of Education issues a Comprehensive Annual Financial Report (CAFR). The most recent report as the 2012 that was created by Alexander Cherniss, Ed.D., Chief Business Officer, fiscal year ending June 30, 2012. Presently no boundary changes during the fiscal year. The purpose of this paper is to provide an overview of government accounting and reporting.
Governmental Accounting and Reporting
Budgeting and accounting are predominantly vital for a government body. Any person with the competence to make decisions relating to the prevailing body should possess the essential understanding of budgeting and accounting. “The Governmental Accounting Standards Board (GASB) sets the accounting and financial reporting standards for state and local governments, whereas the Financial Accounting Standards Board (FASB) sets these standards in for-profit business” (Granof &Wardlow, 2011).
Governmental purpose and missions differ from those of a for-profit business. For-profit business is vastly measured by increasing profits and shareholder worth. Economic metrics are based exclusively on revenue and net income margins, where there may not be as measurable for governmental financial reporting. Government financial report cannot be always measured in monetary trends but more on a service oriented and focus cannot always be measured in dollars and cents and tends to be based more so on service efforts and activities. Additionally, “the actual budget holds more significance in government than in regular business. The budget is technically what governs the government, whereas in business, the marketplace and competition is the driving force” (Granof &Wardlow, 2011).
Los Angeles County Office of Education Comprehensive Annual Financial Report CAFR
The Los Angeles County Office of...

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