Question

CAFR Mini-Project Goal To research and analyze the Comprehensive Annual Financial Report of a US city with a population of at least 100,000. Choose your City Download the most recent CAFR of a city with at a population of at least 100,000. Most cities publish CAFR’s online in .pdf form and a simple Google search (i.e. a search for “Seattle CAFR” or “Boise CAFR”) will usually find them. CAFR Research – Answer the following (all should be included somewhere in the CAFR): • What is the population of the city? • Who is the city’s major employer? • Was the city’s annual report from the previous year awarded a “certificate of achievement for excellence in financial reporting” by the Government Finance Officers Association? • Did the entity receive an “unqualified” audit opinion? If not, why not? • What are the major governmental funds maintained by the city? Does the city’s fund structure conform to its organizational structure? • Does the CAFR include budget-to-actual comparisons of major funds? Of nonmajor funds? • Do encumbrances that remain outstanding at year-end lapse? That is, do the amounts that will be expended in the following year, when the goods or services are received, have to be rebudgeted in the following year? How can you tell? • What are the main sources of the city’s revenues, including those from both governmental and business-type activities? • Does the city’s government-wide statement of net assets of governmental-fund balance sheet report “deferred income?” If so, what is the most likely reason this income has been deferred? • What is the government’s property tax rate? • At what percentage of fair-market-value is real property assessed? • How does the city classify its governmental expenditures, by function or by “object”? Are the classification approximately the same in both the government-wide and the fund statements? I need help for that project. Thank you Yelena

Answer 1

Part A :-

The Comptroller, Scott M. Stringer, in the CAFR introductory section included

• Comptroller's letter of Transmittal
• Certificate of achievement for Excellence in Financial Reporting
• The Government of The City of New York
• Principal Officials of The City of New York

Yes, it includes the items identified in the section of the text titled " Comprehensive Annual Financial Report".

Part B:-

1. The financial statements provided in the report have been audited by an independent auditor. The city has received unmodified audit report.

2. Yes. The CAFR contains both Government wide financial statements and fund statements. 2 financial statements have been included as part of the basic financial statements section i.e., Government wide financial statements and fund financial statements.

3. Five.   

• Summary of significant accounting policies.
• Reconciliation of Govt. wide and fund financial statements
• Stewardship, Compliance and Accountability
• Detailed notes on all funds
• Other information

No. There is no phrase at the bottom of the basic financial statements indicating that the notes are an integral part of the financial statements.

4. The CAFR provides supplementary information combining financial information and other financial information.

5. The CAFR provides management 's discussion and analysis . It is located just below the Independent auditors report. It contains,

• Overview of financial statements
• Govt. wide financial statements
• Fund financial statements
• Government funds
• Fiduciary funds
• Notes to financial statements
• Financial reporting entity
• Blended Component units
• Discretely presented component units etc.,

Part C:-

In this section CAFR includes,

• Schedules of financial Trends information
• Schedules of revenue capacity information
• Schedules of Debt capacity information
• Schedules of Demographic and Economic information
• Schedules of Operating information