CAFR Project Assignment: Governmental & Not-For-Profit Accounting
Instructions
OBJECTIVE:
To allow students to apply concepts of state and local government accounting and reporting through an analysis of the financial statements
TASK:
To complete this assignment, you must select the most recent Comprehensive Annual Financial Report
(CAFR) from an American city or county that meets the following requirements:
• Received the GFOA Certificate of Achievement of Excellence in Financial Reporting
• Has one or more Internal Service Funds
• Has both major and non-major funds in either the Governmental Fund or the Proprietary Fund category.
Use the internet to find the local government's web site. The CAFR is usually found under the "Finance" link, but each government's web site might be a little different. Since CAFRs can be quite long (some are aver 400 pages in length), you may want to save the Adobe format report rather than printing a copy of the entire report. You may also obtain a copy of the CAFR from the Governmental Accounting Standard Board (GASB) website, the Government Finance Officers Association (GFOA) website, the state auditor's office, or by calling the local government.
After you select the government and have obtained the CAFR, inform your instructor immediately. Each student must select a different government. Selections will be approved by the instructor on a first-come basis.
ASSIGNMENT REQUIREMENTS:
Prepare a written report based on the CAFR you selected. Answer the following questions:
1) Introduce and explain the composition of the reporting entity you have selected.
a. Name the primary government and what, if any, component units are included in the CAFR.
b. Give an overview of the history of the government. (One paragraph.)
c. What are the inclusive dates of the fiscal year?
d. What is the name and address of the independent auditor? Is the auditor's opinion unqualified? If not, describe the qualification.
e. How many funds does the primary government use? Which funds are major?
f. From the governmental and enterprise funds statements, take all the major fund(s) (other than the General Fund) and prove/show, using the 10 percent and 5 percent criteria, that the fund is required to be reported as a major fund. (Show your computations in a table format)
2) Analyze the financial condition of the government.
a. From the Management's Discussion and Analysis in the report, write a summary of the financial condition of the government as described by the government.
b. Calculate the following financial ratios presented in Chapter 13 page 389.
(Show your computation in a table format.)
i. Financial Position: Governmental Activities
II. Financial Position: General Fund
iii. Quick Ratio: Governmental Activities
iv. Leverage-Debt to Total Assets: Total Primary Government
v. Debt per Capita: Total Primary Government
c. Analyze revenues and revenue sources
i. Is the revenue base well diversified, or does the city rely heavily on one or two major sources?
ii. What percentage of total expenses of governmental activities is covered by program revenues? By general revenues?
iii. Do any extraordinary or special items reported in the statement of activities deserve attention?
d. Analyze reserves
i. Are the levels of financial reserves (i.e., fund balances, contingency funds, and unrestricted net assets) adequate to meet unforeseen operational requirements or catastrophic events?
ii. Do total governmental fund revenues exceed total governmental fund expenditures? Do General Fund revenues exceed General Fund expenditures? What has been the trend in the ratio of revenues to expenditures?
e. Analyze expenditures/expenses
i. Do any categories of expenditures (or expenses at the government-wide level) exhibit sharp growth?
ii. How does the growth pattern of operating expenditures/expenses over the past 10 years compare with that of revenues?
f. Analysis of debt burden
i. What has been the 10-year trend in general obligation long-term debt relative to trends in population and revenue capacity?
ii. Are significant debts of other governments (e.g., a school district, a county) supported by the same taxable property? What has been the trend for this "overlapping" debt?
g. State your opinion on the financial condition of this governmental unit based on the information you gathered. NOTE: You should not just answer the questions. You should discuss your assessment of the financial condition of the government based on the information you have gathered in items a to f above.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- GOVT-PROJECT.rar