Analysis of Cafr 2011 of the City of Troy
The City of Troy’s Comprehensive Annual Financial Report for 2011 is analyzed. It is content the evaluation of efficiency and effectiveness of the CAFR, comparison of the current year result and performance with the prior result and performance, assess of financial condition, assess of financial operations, compliance with the budget, and overview of Management Discussion and Analysis. Also discussed in this analysis, the auditor’s comments and recommendation about independence, scope, and opinion; and also my recommendation. At the end of this analysis, included the City of Troy’s last 2 year’s performance analysis. Evaluation of Efficiency and Effectiveness
At the end of 2011, The City of Troy had $330.4 million invested in a broad range of capital assets including land. Building, police and fire equipment, water and sewer lines, roads, sidewalks, and other infrastructure, net of debt. The increase in capital assets during the year was attributing to the excess of additional in streets, drains and water/sewer systems over the recognition of depreciation. The City of Tory’s debt rating is excellent. The City maintains a AAA rating on unlimited tax general obligation bonds by Standard and Poor’s. The City of Troy’s bond indebtedness totaled $42.8 million at June 30, 2011 a decrease of $4.4 million from the prior year resulting from debt retirement payments. The General Fund receives all City of Troy revenues not designated for special uses by statutes or the City Charter and accounts for most of the services provided to residents. Overall General Fund revenues decreased by $4.9 million or 8.9% from the prior year. Property taxes in the General Fund decreased by $3.8 million or 10.5%. State sources remained level from the prior year at approximately $5.8 million. State shared revenue is the major source of revenue, which is a return to local governments of a portion of state sales tax, is not restricted to use. Comparison of the Current Year with Previous Year
The City’s combined total net assets are reported as $395.1 million for the fiscal year ended June 30, 2011, compared to $391.0 million last fiscal year. In the City’s governmental activities, revenues generated $72.2 million, while expenses totaled $71.3 million. And in the last fiscal year the City’s governmental activities, revenues were generated $80.5 million while expenses were totaled $75.4 million. In the city’s business-type activities, revenues generated $29.1 million, while expenses totaled $25.9 million. And in the last fiscal year the city’s business-type activities, revenues were $27 million, while expenses were totaled $ 24.9 million. The total cost of all of the City’s programs, including governmental activities and business-type activities was $97.2 million, down $3.2 million from last fiscal year, this compares to a $4.3 million decrease last year. Total net assets increased $4.1million from the prior year. Assess of Financial Conditions
The City of Troy’s combined total net assets for the fiscal year ended June 30, 2011 is $395.1 million. Business-type activities comprise $162.7 million and governmental activities make up $232.4 million of the total net assets. Combined unrestricted net assets; the part of net assets that can be used to finance day-to-day operations, is reported as $83.5 million. $38.4 million is the amount of unrestricted net assets reported for the City of Troy’s governmental activities while $45.1 is reported in the city’s business-type activities. The City of Troy’s total assets decreased by $0.3 million during the year, made up of a decrease of $2.8 million in governmental activities and an increase of $2.5 million in business type activities. The decrease in governmental current assets was due primarily to the use of cash and investments to reduce debt obligations and purchases of capital assets. The total liabilities of City decreased by $4.4 million primarily due to the...
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