Comprehensive Annual Financial Report Briefing Paper
Comprehensive Annual Financial Report Briefing:
Each year the State of Nevada issues the Comprehensive Annual Financial Report (CAFR). The most recent being the 2011 report that was issued by Kim R. Wallin, the State Controller, for the fiscal year ending June 30, 2011. In recent elections, there have been some additions to the Nevada elected board members. The purpose of this paper is to provide an overview of government accounting and reporting, and to introduce the Nevada CAFR to the newly elected board members. Also contained is an evaluation of the Management Discussion & Analysis (MD&A) section contained in the 2011 report.
Governmental Accounting and Reporting
Budgeting and accounting are particularly important for a government …show more content…
For-profit business is highly measured by increasing profits and shareholder value. Financial metrics are based specifically on revenue and net income targets, whereas these measures would not be of much significance to governmental reporting. Government focus cannot always be measured in dollars and cents and tends to bebased more so on service efforts and accomplishments. In addition, the actual budget holds more significance in government than in regular business. The budget is technically what governs the government, whereas in business, the marketplace and competition is the driving force (Granof&Wardlow, 2011). Furthermore, annual financial reports are more important in for-profit business than the associated …show more content…
The State of Nevada was admitted to the Union in 1864. The majority of land contained in Nevada is owned and operated by the federal government, 80% respectively. Nearly 88% of the entire population of Nevada is located in one of two population centers, Washoe County and Clark County. Nevada does not collect a personal income tax as the economy and tax base is reliant on gaming, tourism, federal activities, and the mining industry (Wallin, 2011). The State of Nevada reporting entity prepared the associated financial statements in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units, in the United States of America. The financial statements conform to the requirements of GASB, the accepted standard setting body for government accounting and financial reporting. The accounting and reporting principles are based on the theory that publicly elected officials are accountable to their residents throughout the state (Wallin,
Each year the State of Nevada issues the Comprehensive Annual Financial Report (CAFR). The most recent being the 2011 report that was issued by Kim R. Wallin, the State Controller, for the fiscal year ending June 30, 2011. In recent elections, there have been some additions to the Nevada elected board members. The purpose of this paper is to provide an overview of government accounting and reporting, and to introduce the Nevada CAFR to the newly elected board members. Also contained is an evaluation of the Management Discussion & Analysis (MD&A) section contained in the 2011 report.
Governmental Accounting and Reporting
Budgeting and accounting are particularly important for a government …show more content…
For-profit business is highly measured by increasing profits and shareholder value. Financial metrics are based specifically on revenue and net income targets, whereas these measures would not be of much significance to governmental reporting. Government focus cannot always be measured in dollars and cents and tends to bebased more so on service efforts and accomplishments. In addition, the actual budget holds more significance in government than in regular business. The budget is technically what governs the government, whereas in business, the marketplace and competition is the driving force (Granof&Wardlow, 2011). Furthermore, annual financial reports are more important in for-profit business than the associated …show more content…
The State of Nevada was admitted to the Union in 1864. The majority of land contained in Nevada is owned and operated by the federal government, 80% respectively. Nearly 88% of the entire population of Nevada is located in one of two population centers, Washoe County and Clark County. Nevada does not collect a personal income tax as the economy and tax base is reliant on gaming, tourism, federal activities, and the mining industry (Wallin, 2011). The State of Nevada reporting entity prepared the associated financial statements in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units, in the United States of America. The financial statements conform to the requirements of GASB, the accepted standard setting body for government accounting and financial reporting. The accounting and reporting principles are based on the theory that publicly elected officials are accountable to their residents throughout the state (Wallin,