...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...
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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...
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...Discuss the financial controls within governmental agencies, communication of the budgetary process as well as maintaining budget compliance? Local government implements budgets with the common purpose of any financially sound business; to plan and forecast how revenues will be managed. However, local government budget standards are fundamentally different from the common public business enterprises in several important ways. They have different purposes, processes of generating revenues, stakeholders, budgetary obligations, and propensity for longevity. These differences require more stringent audit and financial reporting in order to provide information to meet the same legal and political compliance requirements used to assess government accountability and to make political, social, and economic decisions. Being subject to the constant scrutiny of the public eye is a difficult objective as both, the accomplishments and the mistakes are visible in order to reflect a transparent posture. Nowadays, with the internet, dissemination is a very effective and effortless task. Releasable documents, as more are, become available almost as soon as they are generated. That said, keep in mind that human error, natural disasters, terrorism and other inevitable events may happen and a local government’s efforts and goals to remain in compliance can be destroyed overnight. To mitigate these probabilities of derailment, budgets are implemented with financial controls. Financial...
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...The inclusive dates for the fiscal year for the Comprehensive Annual Financial Report (CAFR) for the City of San Francisco, CA are 2010-11. The independent auditor for San Francisco’s CAFR is Macia Gini & O’Connell LLP (MGO) located at 505 14th Street in Oakland, California. The auditor states that their audit was in accordance with auditing standards generally accepted in the United States of America. Those statements require the planning and performing of the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The auditor did express unqualified opinions based on the audit and the reports of other auditors, on the respective financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information. However, the financial statements of the San Francisco International Airport, San Francisco Water Enterprise, Hetch Hetchy Water and Power, San Francisco Municipal Transportation Agency, San Francisco Wastewater Enterprise, San Francisco Market Corporation, and the Health Service System were not audited. The City of San Francisco’s organization chart contains several levels: the citizens elect a mayor and the city administrator is appointed. Also elected is the assessor/recorder, Board of Supervisors, City Attorney, District Attorney, Public Defender, Sherriff, Superior Court, and the Treasurer/Tax...
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...businesses have profit as their main motive whereas the others have service. A primary purpose of financial reporting is to report on an entity’s accomplishments — how well it achieved its objectives. Accordingly, the financial statements of businesses measure profitability, their key objective. Financial reports of governments and other not-for-profits should not focus on profitability, since it is not a relevant objective. Ideally, therefore, they should focus on other performance objectives, such as how well the organizations met their service goals. In reality, however, the goal of reporting on how well they have achieved such goals has proven difficult to attain and the financial reports have focused mainly on financially-related data. 2. Governments and not-for-profits are “governed” by the budget, whereas businesses are governed by the marketplace. The budget is the key political and fiscal document of governments and not-for-profits. It determines how an entity obtains its resources and how it allocates them. It encapsulates most key decisions of consequence made by the organization. In a government the budget is not merely a managerial document; it is the law. 3. Owing to the significance of the budget, constituents want assurance that the entity achieves its revenue estimates and complies with its spending mandates. They expect the financial statements to report on how the budget was administered. 4. Interperiod equity is the concept that taxpayers of today...
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...A | | 3. | C | | 4. | C | | 7 | B | | 9 | D | | 10 | C | | Chapter 2, Question 12 What is a CAFR? What are its main components? The CAFR is short for Comprehensive Annual Financial Report. The CAFR reports the governments’ activities from the fund accounts and the government-wide financial statements. The Main components are the introduction section, financial section, and statistical section. Differentiating between a budget and a Comprehensive Annual Financial Report (CAFR). The CAFR is a combination of financial reports for the transactions of the government. What makes it different from a budget is the transactions are complete and show revenues that pay expenditures.A budget represents what cash the government wants to use for the year or financial period on specific projects. This means a plan of services and actions by the government to meet public needs and requirements. Budget changes happen when revenues do not equal project amounts.This information comes from the annual CAFR to meet each period’s budget. With the CAFR the public views the amount spent and the amount in reserve. So the budget is the plan, and the CAFR is the report of completion. The breakdown of the two is different also. The CAFR is an introductory describing the government, a financial section shows spending and revenues, and the statistical section with demographic and department statistics.The budget is a breakdown of different fund accounts, the money allotted and sometimes...
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...ACC 410 Assignment 1 Financial Statement / Audit Report Review Follow Below Link to Download Tutorial https://homeworklance.com/downloads/acc-410-assignment-1-financial-statement-audit-report-review/ For More Information Visit Our Website ( https://homeworklance.com/ ) Email us At: Support@homeworklance.com or lancehomework@gmail.com Assignment 1: Financial Statement / Audit Report Review Due Week 4 and worth 240 points Select one (1) local government in your state or area and review the financial statements and audit report for the county or municipality. The financial statements of the government you selected should have at least three (3) funds. Refer to the continuing problem homework for Weeks 1 through 3 for this assignment. Write a three to five (3-5) page paper in which you: 1.Compare and contrast the comprehensive annual financial report (CAFR) of the selected local government entity with the city of Austin report from Week 1 homework. In your comparison, include: a.Publication method of the CAFR b.Audit and budget information in the CAFR c.The type of audit report issued d.Existence or non-existence of an internal audit function within the government entity 2.Prepare the analysis for the selected local government entity, including information on the introduction, financial section, and statistical section prepared in the city of Austin’s CAFR from chapter 2. 3.Analyze the methods used by the selected local government entity in comparing...
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...finances assists with budgeting and planning. Since I work in local government, I searched for articles on research studies within local government agencies and their financial performance measures. The research study I found is called, “Local Government Measurement and Use of Performance Accounting and Financial Reporting Data in Planning and Budgeting Decision Support” (2009). The study used a multi case study approach. The study was done to identify debt obligation performance in financial reports to assess the measurement of debt performance. The researcher selected three county government agencies to perform the study. The selection of the county agencies was based on history and similarity of the use of performance measures and the use of debt performance data in their budget decision making. The counties also share similar characteristics in city age, population, general fund revenues and geographic region. The counties selected for the study are Solano County in California, Prince William County in Virginia and Kent County in Michigan. The study used the Comprehensive Annual Financial Reports and budget for each county to examine the debt obligation performance. The researcher used these reports because they are audited and seem more credible than self-reported financial reports. Financial performance measurement information provides information to Council members and residents on how the agency is performing and managing tax payer’s dollars....
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...Exam you will find the next information: 1. Under GASB rules for the financial reporting entity 2. According to GASB Statement No. 44, all of the following is a recommendation category for the CAFR Business - Accounting Assume a government is a special-purpose government engaged in only one governmental activity. Which financial statements would be require A public college had tuition and fees of $20,000,000. Scholarships, for which no services were required, amounted to $2,000,000. Graduate assistantships, for which services were required, amounted to $1,000,000. The amount to be reported by the public college as net tuition and fees would be A public college had tuition and fees for the year ended June 30, 2009 in the amount of $45,000,000. Scholarships, for which no services were required, amounted to $2,500,000. Graduate assistantships, for which services were required, amounted to $2,300,000. The amount to be reported by the college for net tuition and fee revenue would be Which organization promulgates the Government Auditing Standards? Under the terms of the Single Audit Act and its amendments, what percentage of federal awards expenditures must be selected for audit? The term opinion unit refers to which of the following? All of the following are considered to be a major user group by the GASB EXCEPT To compute the net debt per capita, what would a user of financial statements need to look at in the CAFR? In order to compute the...
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...representatives is going to help design the annual report for the company through reviewing financial reports for 2007. There are an amount of ideas that can be looked at when working toward putting together R.E.C.’s annual financial report. The main idea should be about how the company did, why they did that good along with what areas within the company made things look that good. This would be presented by talking about quarterly totals, changes in quarters, what areas had made improvements in the company, what areas have gone downhill in the company and information about how the company did so well within the areas that they did well in and why they didn’t do well in others along with what changes can happen in the troublesome areas. This would be so that the CEO has a better understanding of how is company has done and an explanation as to what he and /or she has been seeing on paper. Another main idea would be an outlook on the investors’ behalf, something talking about how the company’s performance record is, what the investors should expect to see in the future and how their capital structure and competitive position are within their said industry. This would be presented as talking about some of the financial statements and where the company stands financially and if they should make any changes to how they are handling their debt and things of this nature. Ensure that no mistakes have been made in areas of the financial statements and be sure to make sure they understand...
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...Davidson County are coextensive. The executive and administrative powers are vested in the Mayor, who is elected at large for a four-year term. The Mayor is authorized to administer, supervise and control all departments and to appoint all members of boards and commissions. They also have a Vice-Mayor, who is elected at large for a four year term and is the presiding officer of the Council. The Council is composed of 40 members who are elected for four-year terms. 4. What two service district governments are included within the CAFR? General Services District and Urban Services District are included in the CAFR. 5. What are the three basic sections of the CAFR? Introductory section, Financial section, and Statistical section. 6. Certificate of Achievement for Excellence in Financial Reporting • Did this government receive this award and if so, for what year? According to page vii, the government received this award in the fiscal year ended 2009. • Who grants this award? The award was granted by the Government finance Officers Association of the United States and Canada. •...
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...CHAPTER 1: INTRODUCTION TO ACCOUNTING AND FINANCIAL REPORTING FOR GOVERNMENTAL AND NOT-FOR-PROFIT ENTITIES OUTLINE |Number |Topic |Type/Task |Status | | | | |(re: 15/e) | |Questions: | | | | |1-1 |Unique characteristics of governments and NFPs that create demand for |Identify/Explain |New | | |accountability | | | |1-2 |Distinguishing between general purpose and special purpose governments|Identify |New | |1-3 |Standards-setting bodies |Contrast |Same | |1-4 |Determining which standard-setting body sets standards for a |Identify/Explain |New | | |nongovernmental NFP | | ...
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...is being done with the money that they are paying in taxes, and if the governments are using the resources wisely. Media is also putting a lot of pressure on governments and not-for-profit entities, demanding transparency and accountability for the resources used. The principle of accountability requires that the local, state and federal governments report and answer to the citizens, and by doing this the governments need to justify the raising of public resources and the purposes for which the resources raised are used. There are three different governing boards that establish accounting principles, standards and rules on how to recognize and report accounting related transactions. There is the FASAB, which stands for Federal Accounting Standards Advisory Board. This is the board that establishes accounting principles and standards for reporting for the federal government. When it comes to local and state governments, the authority or the board that dictates the accounting related principles and rules is GASB. GASB stands for Governmental Accounting Standards Board. Last, but not least there is FASB, which stands for Financial Accounting Standards Board. FASB dictates principles of accounting and standards for the private sector, and the...
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...CAFR BUDGET ANALYSIS 2 CAFR Budget Analysis The Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) serve similar functions for different accounting entities. The GASB maintains accountability over state and local governments, while the FASB maintains adherence to standards for not-for-profit entities. Both governments and not-for-profit organizations use an expenditure approach to accounting where budgetary needs are the first priority over financial statements. Governments however, have additional reporting items that fall within the purview of the power to summon resources. Governments and not-for-profit entities have a different business model than that of for-profit organizations, because governments and not-for-profit entities primary business goal is something other than profit. Governments differentiate themselves from not-for-profit entities by the ability to use taxes, licenses, and legislature as a means to levy revenue to pay for expenses. Not-for-profit organizations primarily use grants, investments, and contracts to earn revenue (Copley & Engstrom, 2007). Modified Accrual Method Since governments and not-for-profit organizations use a different business model than traditional businesses, a modified accrual method is used to account for assets, liabilities, and capital. The GASB and FASB allow for the creation of individual accounting entities called funds that track the funding and expenses for that entity. Each...
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...Brownfield Redevelopment Authority Yes, the introductory section discusses the financial condition of the reporting entity at the balance sheet date. Yes, it discuss the most significant changes in financial condition occurred that year like Lansing’s regional unemployment rate has dropped more than 2% and is one of the lowest rates in Michigan Yes, it alerts the reader to forthcoming changes in the financial condition e.i. The former Knapps Centre, a $36 million, historic 150,000 sf. former department store in downtown Lansing, will be renovated next year into a mixed use development Yes, it includes a list of principal officials and organization chart Yes, it includes a certificate of achievement for excellence in financial reporting and that’s its 33rd consecutive certificate Financial Section Yes, it is audited by the independent Rehmann CPA firm, and it’s the City of Lansing’s responsibility for an accurate financial statement. Yes the auditors express their opinion in the financial statement. The opinion is qualified. The opinion only covers the basic financial statement. Yes, it contains the two government wide financial statements and the seven fund statements (governmental, proprietary, and fiduciary). There are four notes follow the basic financial statements. Yes there is a phrase at the bottom of the basic financial statements indicating that the notes are an integral part of the financial statements. Yes, the CAFR provides combining and individual fund statements...
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