Financial Reporting - CAFR

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  1. Does GASB recommend that every government entity prepare and publish as a matter of record, a Comprehensive Annual Financial Report that encompasses all funds and account groups of the primary government, including its blended component units?
    Yes. National Council on Government Accounting Statement #1
  2. The CAFR is designed to serve the needs of:
    Primary user (citizens, investors/creditors, legislative bodies) of financial reports.
  3. The required sections of the CAFR are:
    • -Introductory Section - Not required by GAAP
    • -Financial Section
    • -Statistical Section - GASB Statement No 44

    Other sections can be includes as needed
  4. What should be included in the Introductory section of the CAFR?
    -Cover, title page, & Table Content (table of contents actually precede the introductory section)

    • -Certificate of Achievemnet (prior year)
    • -List of principle officers
    • -Organization chart
    • -Letter of Transmittal
  5. How many sections are included in the Letter of Transmittal & what are they?

    • -Formal transmittal of the CAFR
    • -Profile of the government
    • -Information useful in assessing economic condition
    • -Awards & acknowledgements

  6. How many sections are in the Letter of Transmittal and what are they?
    • -Formal transmittal of the CAFR
    • -Profile of the government
    • -Information useful in assessing economic conditions
    • -Awards & acknowledgement

    The letter is signed by the CFO and ideally the COO; the lowest signature level allowed is the CFO.
  7. Which items are required by GAAP in the Financial section of the CAFR?
    • -Auditor Report (opinion)
    • -MD&A
    • -Basis financial statements:
    • Government wide
    • Fund
    • Notes
    • -Required supplementary information other than MD&A, including the budgetary comparison schedule.
  8. Which are not required by GAAP to be included in the Financial section of the CAFR?
    • -Combining & individual fund financial statements
    • -Primary government and component units
  9. The Government Wide financial statement included within the CAFR should report the primary government's financial information for:
    • -Governmental activities
    • -Business-type activities
  10. In the Government Wide financial statements, the required statements should include statements for:
    • -Statement of Net Assets
    • -Statement of Activities
  11. Are Fiduciary statements included or excluded from the Government Wide financial statements?
  12. The Fund level financial statements within the CAFR focus on which types of funds?
    -Major and Nonmajor funds in aggregrate.
  13. For Fund level financial statements, is measurement and basis of accounting determined by the fund type?
  14. What are the fund types and what are the measurement of focus and basis of accounting?
    -Governmental: Measurement of focus is financial resources (fiscal accountability), meaning are current year revenues sufficient to pay for current year expenses; the basis of accounting is modified accural

    -Proprietary: Measurement of focus is economic resources (operational accountability), meaning revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The basis of accounting is full accural.

    -Fiduciary: economic resources and full accural
  15. The Statistical section of the CAFR is used to present the ____________ condition of the primary government?
  16. If preparing a Statistical section GASB ___ must be followed?
  17. What are the required sections of the Statistical section?
    • -Financial trends info: show financial condition over time
    • -Revenue capacity info: show revenue sources; ability to generate own revenue
    • -Debt capacity: show debt burden; show ability to issue additional debt
    • -Demographic & economic info: aid in understanding the evironment within which the financial activities take place; e.g. principal taxpayers, population, etc
    • -Operating info: how does the gov operate; what are its resources; what is the context for understanding and assessing its economic condition
  18. The GFOA Award uses ______________ people across the nation as judges?
  19. Are GFOA award reviewers usually from the same state as the applicant?
  20. Are GFOA award reviewers usually from the same firm that audited the applicant?
  21. The GFOA award program was established in which year?
  22. The GFOA award program encourages and assists governments to go beyond GAAP requirements in the spirit of transparency & full disclosure. Is this statement true or false?
  23. Reports submitted for the GFOA award are reviewed by selected members of:
    GFOA professional staff
  24. The GFOA Special Review Committe (SRC) is made of individuals with expertise in:
    Public sector financial reporting; includes financial statement preparers, independent auditors, academics, & other finance professionals.
  25. Popular reporting developed because accounting professionals, politicians and others believed that governmental financial statements were _________ __________ and not __________ except to those knowledge about governmental accounting.
    • Excessively complex
    • understandable
  26. Popular reports are simplified ____________ type reports.
  27. In Popular Reporting, are graphical presentations used to a greater extent than traditional financial statements?
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Financial Reporting - CAFR
Financial Reporting - CAFR
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