The Comprehensive Annual Financial Report of a Local Governmental Unit

question 18

Essay

The Comprehensive Annual Financial Report of a local governmental unit includes several statements and sections.When a financial analyst is computing ratios and extracting other information,he or she needs to know where in the CAFR to look.Use the following classification to indicate where an analyst would look in the CAFR to compute the ratios and gather information by placing the appropriate letter(s)in the space next to each item.When possible,choose the location in the basic financial statements or notes that would be subject to examination:
a.Letter of transmittal-introductory section
b.Management's Discussion and Analysis
c.Auditor's opinion
d.Government-wide Statement of Net Assets
e.Government-wide Statement of Activities
f.Governmental funds Balance Sheet
g.Governmental Funds Statement of Revenues,Expenditures,and Changes in Fund Balances
h.Proprietary funds Statement of Net Assets
i.Proprietary funds Statement of Revenues,Expenses,and Changes in Net Assets
j.Proprietary funds Statement of Cash Flows
k.Fiduciary funds Statement of Fiduciary Net Assets
l.Fiduciary funds Statement of Changes in Fiduciary Net Assets
m.Notes to the Basic Financial Statements
n.Required Supplementary Information other than MD&A
o.Combining and individual fund statements (Other Supplementary
Information)
p.Statistical Section
Ratios and Other Items:
______ 1.Net debt per capita
______ 2.Net debt to fair value of property
______ 3.Interest coverage-revenue bonds
______ 4.Operating ratio-enterprise funds
______ 5.Governmental revenues per capita
______ 6.Debt service/total governmental revenues
______ 7.Unreserved fund balance/revenues-General Fund
______ 8.Actual expenditures/budgeted expenditures-General Fund
______ 9.Unrestricted net assets-governmental activities/general government expenses-governmental activities
______ 10.Cash expended on capital assets- enterprise activities
______ 11.Summary information regarding overall government financial performance for the year
______ 12.City management organizational chart
______ 13.Unfunded pension liability for the government as a whole
______ 14.Information regarding actual and planned maintenance of infrastructure,when the modified approach is used
______ 15.Debt limit and debt margin
______ 16.Total expenses for interest for a major enterprise fund
______ 17.Assessed value of property
______ 18.Information regarding balances for a nonmajor enterprise fund
______ 19.Schedule of direct and overlapping debt
______ 20.Cash balances in a pension trust fund

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Definitions:

Plant Asset

Long-lived tangible assets used in the production and distribution of goods and services, such as machinery and equipment.

Systematic

Methodical in procedure or plan; carried out using step-by-step methods leading to predictable outcomes.

Service Life

The estimated period over which a fixed asset is expected to be usable by the entity, impacting its depreciation calculation.

Fair Value

The price at which an asset would be bought or sold in a fair transaction between willing parties.