Governmental Accounting Exam 2

Front 1

What is the CAFR

Back 1

Comprehensive Annual Financial Report

Used by state and local governments to provide detailed information (more than MD&A). It is not required, but done for public record.

Front 2

What are the major parts of the CAFR

Back 2

1) Introductory: title page, content page, letter of transmittal, etc.
2) Financial: Auditor's report; MD&A; Basic Financial State.; RSI and other supplementary info.
3) Statistical: tables and charts showing demographics, economic data, financial trends, fiscal capacity, and operating information.

Front 3

Fiscal Accountability

Back 3

Assess whether the government has raised and spent financial resources in accordance with budget plans and in compliance with pertinent laws and regulations. Focus on the short-term flow of current financial resources. Conservator that cares for assets.

Front 4

Operating Accountability

Back 4

Government-wide financial statements used to assess whether the government has used its resources effectively and efficiently in meeting operating objectives.

Front 5

Management Discussion & Analysis (MD & A)

Back 5

Part of RSI, includes discussion about the purpose of the basic financial statements and the government's current financial position and results of financial activities compared w/ those of the prior year.

Front 6

Two Basic types of Financial Statements

Back 6

Fund Financial Statements and Government-wide Financial Statements

Front 7

Fund Financial Statements

Back 7

Inteneded to assist in assessing whether the government has raised and spent financial resources in accordance with budget plans and in compliance with pertinent laws and regulations. Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance. Do NOT report LT Assets and LT Liabilties on Balance Sheet

Front 8

Government-wide Financial Statements

Back 8

Intended to provide an aggregated overview of a government's net assets and changes in net assets. Report on the government as a whole and assist in assessing operational accountability. Statement of Net Assets (report on LT Assets and Liabilities) and Statement of Activities.

Front 9

Interperiod Equity

Back 9

Significant part of accountability. Assess whether current-year revenues are sufficient to pay for services provided that year and whether future taxpayers will be required to assume burdens for Services previously provided. ie, The burden of paying for current services should not be shifted to subsequent periods.

Front 10

RSI

Back 10

Required Supplementary Information. Example: the MD&A, easily readable form.