Homework: Financial Reporting Review of Local Government
Overview
The Governmental Accounting Standards Board (GASB) has established accountability as the cornerstone of financial reporting for governments. Accountability, as defined by GASB, includes budgetary and fiscal compliance. In this homework, you will explore a local government's Comprehensive Annual Financial Report (CAFR) for the elements of the CAFR and how those elements are incorporated by a local government. Your professor will assign a local government CAFR that is similar to the CAFR presented in your textbook.
Instructions
Write a 3 to 5 page paper in which you do the following:
1) Compare and contrast the CAFRs in three categories:
a) Publication method.
b) The existence or non-existence of an internal audit function.
c) At least two key features of the external audit information.
o Compare both the internal and external audit information presented.
o Include the publication method of the CAFR for the assigned local government entity with the governmental entity being used for your Continuing problem.
2) Analyze each of the three sections of the assigned local government CAFR using the questions presented in Chapter 2 Continuing Problem as a basis:
a) The CAFR includes statements that combine and report on the government's activities from both a government-wide and a fund perspective.
b) The CAFR is divided into three sections - introduction, financial, and statistical.
c) Using the assigned local government CAFR, analyze each of these sections using the questions presented in the Chapter 2 Continuing problem as a basis.
3) Analyze the local government methods used in the preparation of the Budget-to-Actual reports in the CAFR, including the basis of accounting used, significant variances, and other local government financial-related legal or contractual requirements.
a) The Budget-to-Actual reports in the CAFR are the foundation of evaluating budgetary compliance.
4) Analyze the local government CAFR, identifying at least three primary revenue sources from both governmental and enterprise funds. In your analysis, include:
a) Revenue rates.
b) Revenue trends.
c) Whether the delay remains in the recognition of revenue.
o The statistical section is a good source of rate and trend information.
5) Use at least three quality sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your homework. For help with research, writing, and citation, access the library or review library guides.
6) Produce writing that contains accurate grammar, mechanics, and spelling in accordance with SWS style.
Format your homework 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 homework, 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 outcome associated with this homework:
1) Analyze the financial reporting of a local government for specific indications of budgetary and fiscal compliance.