Instructions: Obtain a copy of a recent Comprehensive Annual Financial Report (CAFR). You are to answer the attached questions for CAFRs 1 to 5. You do not have to do the other ones. In responding to the questions, recognize that yes and no answers are generally not sufficient. I am allocating significant points to these cases, and I want your answers to indicate that you have read and understood the information presented in your CAFR. For example, in question (d) in Chapter 1, don’t just say yes the CARF does contain an organizational chart, a table of contents, a list of principal officials, and so on, but list them and be descriptive of what you find. If you run into terms that you are not familiar with, check the index at the back of the book to find where it is discussed, or you can ask me. I am available to help if you have questions or run into difficulties.
Obtain a copy of a recent Comprehensive Annual Financial Report. If I don’t have sufficient numbers for everyone, these may be obtained by writing or calling the director of finance in a city or state of your choice. You will have questions related to the annual report dealing with a number of the chapters in the textbook. Answer the following questions related to your CAFR. a. What are the inclusive dates of the fiscal year?
b. Write the name and address of the independent auditor. Is the auditor’s opinion unqualified” If not, describe the qualification. Is the opinion limited to the basic financial statements, or does the opinion include combining and individual fund statements? c. Is the report separated into the three distinct sections: introductory, financial, and statistical? Does the report have a “single audit” section at the end? (A few CAFRs include their single audit report in the CAFR—see Chapter 13 for more detail of the single audit requirements.) d. Does the report contain an organization chart? A table of contents? A list of principal officials? A letter of transmittal? Is the letter of transmittal dated and signed by the chief financial officer? List the major items of discussion in the letter of transmittal. e. Does the report include a Management’s Discussion and Analysis? List the major items of discussion. f. Does the report include the government-wide statements (Statement of Net Assets and Statement of Activities)? g. Does the report reflect fund financial statements for governmental, proprietary, and fiduciary funds? List those statements. List the major governmental and proprietary funds (the funds that have separate columns in the governmental and proprietary fund statements.)
Using your CARF, answer the following questions:
a. Compare the items discussed in the MD&A in your CAFR with the list of items in this chapter. Which topics listed in this chapter are not in your CAFR? Which topics are in CAFR that are not listed in this chapter? Do you think your CAFR has a reasonably complete discussion? b. From the MD&A in your report, write a short summary of (1) the financial condition of your government, (2) a comparison of revenues compared with the prior year, (3) a comparison of expenses compared with the prior year, and (4) a comparison of budgeted and actual activity. c. From the Statement of Net Assets, write down the following: (1) unrestricted net assets—governmental activities; (2) unrestricted net assets—business-type activities; (3)restricted net assets by restriction—governmental activities; (4) restricted net assets by restriction—business-type activities; and (5) unrestricted and restricted net assets—component units. d. From the Statement of Activities, write down the following: (1) net program expense (or revenue)—governmental activities; (2) net program expense (or revenue)—business-type activities; (3) net...