Essay on Comprehensive Annual Financial Report

1409 Words Sep 11th, 2010 6 Pages
Comprehensive Annual Financial Report

Tyies Wells

ACC/548

June 27, 2010
William J. Carter III, MSA

Comprehensive Annual Financial Report

The Office of Financial Management provides vital information, fiscal services and policy support that the Governor, Legislature and state agencies need to serve the people of Washington State (Investopedia, 2010). Included in this briefing, a comparison of the governmental and for-profit financial accounting will be discussed, an understanding of the government reporting and reporting entity, and an overview of the Management Discussion & Analysis report for the state of Washington. The Comprehensive Annual Financial Report (CAFR) requires statistical evaluation, whereas
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Since state and local governments invest $1 out of every $10 dollars ($140 billion to $150 billion annually) in the construction, improvement, and rehabilitation of capital assets, that information should be very interesting to local taxpayers (Business Encyclopedia, 2010). The government-wide financial statement includes: • Statement of Net Assets – Information on all of the state of Washington’s assets and liabilities, with the differences between the two reported as net assets. • Statement of Activities – Information showing how the state’s net assets changed during the most recent fiscal year. The fund financial statement is a group of accounts used to maintain control over resources that are segregated for specific activities or objectives. The state of Washington uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The state uses 649 accounts that are combined into 54 rollup funds. The state presents separate financial statements for governmental funds, proprietary funds, and fiduciary funds. Major individual governmental funds and major individual proprietary funds are reported in separate columns in the fund financial statements, with nonmajor funds being combined into a single column regardless of fund type. Internal service and fiduciary funds are reported by fund type (State of Washington, CAFR, 2010). Some of the major funds that are supported by the state of

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