Homework: Analysis of a Comprehensive Annual Financial Report (CAFR)
Introduction
Congratulations! You just landed your dream job as a staff accountant at Baker, Lombard, & Sweeting Accounting, LLC in the Government Accounting Department. It is your first day on the job; you are nervous but excited. After you get settled at your desk, your new boss, Simone (the professor) calls you in to her office to discuss a project she would like you to complete.
You approach Simone's office and she invites you to come and sit down. After exchanging some pleasantries, Simone asks how familiar you are with Comprehensive Annual Financial Reports (CAFR) for state and local governments. You inform Simone that you studied CAFRs during your graduate degree at UMCG and feel pretty confident in your understand. Great, she says, "I would like you to prepare a CAFR Analysis Report for a client. I will email you the specifics; after you review the information I send, please let me know if you have any questions.
You hurry back to your office and wait for the email to come through so you can dive right in.
Steps to Completion
1) Identify a state or local government agency to analyze
2) Locate the Comprehensive Annual Financial Report (CAFR) of the state or local governmental agency you selected
3) Analyze the CAFR that you selected
A. Prepare a report analyzing and explaining the following:
a. Discuss what the main sections of the report are.
b. Discuss the introductory section of the CAFR:
• Explain whether or not the CAFR has a certificate of achievement of excellent in financial reporting
• Explain the key issues addressed in the letter of transmittal. Discuss the budget-to-actual comparisons of the major funds.
• Explain the accounting basis used to prepare its annual operating budget.
• Explain whether the actual amounts are on a GAAP or a budgetary basis.
c. Discuss the main sources of the government's revenues, including those from both governmental and business-type activities.
d. Discuss how the government classifies its governmental expenditures. Explain whether the classifications are approximately the same in both the government-wide financial statements and the fund statements.
e. Discuss what types of assets are reported and how they are reported for government-wide financial statements and the fund statements.
f. Discuss what types of liabilities are reported and how they are reported for government-wide financial statements and the fund statements.
g. Discuss whether or not you feel that the CAFR is easy to read and understand. Discuss what recommendations regarding the CAFR you make to the governmental entity.
4) CAFR Analysis Report
A. Prepare the report in your own words that shows in-depth critical thinking - and support your answers with analysis. There are many ways to do this, but in addition to the answering the questions you need to analyze, explain, or describe what you are doing as though you are presenting the work to a CEO, Executive Officer, CFO or Board.
a. Provide a cover page (with your name and title of the work) and a bibliography (also remember that you need to cite your sources within the paragraphs (body of your work).
b. You should have a minimum of five pages double spaced counting the cover page and bibliography. Use Excel if there are calculations but use Word if no calculations are needed. You will be graded based on computational accuracy, critical thinking, professionalism, communication, and presentation - and you need to include a cover page with your name on your work - and remember to cite all sources.
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.