Assignment: Financial Statement/Audit Report Review
Select one 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 funds. Refer to the Continuing Problem homework for this assignment.
Write a three- to five-page paper in which you do the following:
1. Compare and contrast the Comprehensive Annual Financial Report (CAFR) of the selected local government entity with the government entity identified in the Week 1 homework. In your comparison, include the following:
1. The publication method of the CAFR;
2. Audit and budget information in the CAFR;
3. The type of audit report issued; and
4. The existence or nonexistence 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 Continuing Problem CAFR from Chapter 2.
3. Analyze the methods used by the selected local government entity in comparing the budget-to-actual reports. Your analysis should include an evaluation of the basis of accounting used for the budget and financial statements.
4. Analyze the sources of revenue for the selected local government. Your analysis should include information on both governmental and business-type activities of the government. In your report, be sure to examine the following:
1. Property taxes and how they are accounted for;
2. Other sources identified as primary revenue for the entity;
3. Deferred revenue;
4. Year-to-year variations in the tax levels of income;
5. Various management discussion and analysis items of note; and
6. Information about the general fund.
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.
The specific course learning outcomes associated with this assignment are as follows:
• Analyze the financial reporting of a local government, including information on governmental and business-type activities related to sources of revenue.