Governmental Accounting and Financial Reporting



focus is to protect and serve the needs of their citizensChecks and balancesGovernments receive revenues from an involuntary payment of taxesRestricted revenue sourcesBudgetary controls35147251447800FUND ACCOUNTINGFund TypesGovernmentalProprietaryFiduciaryGovernmental FundsGeneral FundSpecial Revenue FundsCapital Projects FundsDebt Service FundsBusiness-type activitiesProprietary FundsEnterpriseInternal Service FundsFiduciary FundsTrust FundsAgency Funds00FUND ACCOUNTINGFund TypesGovernmentalProprietaryFiduciaryGovernmental FundsGeneral FundSpecial Revenue FundsCapital Projects FundsDebt Service FundsBusiness-type activitiesProprietary FundsEnterpriseInternal Service FundsFiduciary FundsTrust FundsAgency FundsGASB: Governmental Accounting Standards BoardUsers of government financial reports:CitizensElected representativesCreditors in the municipal bond industryComprehensive Annual Financial ReportHistoric accounting and financial record for the fiscal year – in accordance with “GAAP”Need for “CAFR”Fiscal and operational accountability Assess government economic conditionDemonstrate legal complianceReflects government accounting environmentReporting model is unique to governmentServes the needs of citizensAccountability to resource providersGovernmental vs. business-type activitiesMore complex than private sector reportsThree Primary Sections of the CAFRIntroductory: general informationTransmittal letterOrganization profileOverview of local economyLong-term financial planningOrganizational ChartCertificate of Achievement AwardFinancial: current fiscal year results (largest and most complex section)Three ways of providing required information:Display (financial statements)Disclosure (notes)Additional information (required and other supplementary information)Government-wide Financial StatementsOperational accountability for Governmental and Business-type activitiesTwo Government-wide Financial StatementsStatement of Net Assets (financial position at FY end)Statement of Activities (financial operations for the fiscal year)Fund Financial StatementsProvide fiscal accountability for Governmental and Proprietary Funds in the current year periodThree Fund Financial Statements:Balance Sheet (financial position at FY end)Statement of revenues, expenses and change in fund balance/net assets (financial operations for the fiscal year)Budget versus actual comparisonsDisclosure – Notes to the Financial StatementsExamples:Accounting policiesDeposits and investmentsCapital assets and long-term debtPension and OPEB obligationsInterfund financial activityCommitments and contingenciesSupplementary informationRequired:Management’s Discussion and Analysis (MD&A)OPEB and Pension disclosuresOther:Combining and individual financial statementsOther relevant informationStatistical: multi-year trendsInformation on economic conditionFive specific objectives (multi-year data)Financial trends informationRevenue capacity informationDebt capacity informationDemographic and economic informationOperating informationSummaryThe CAFR provides a significant level of historic financial operating and economic dataUseful in providing context to the level of current operationsBenchmarks results of previous financial planning effortsBond Disclosure SupplementRule 15c2-12 of the Securities and Exchange CommissionIndirect control of government issuersProhibits underwriters from participating in an offering of municipal securities unless the government issuer provides a written agreement to provide specific annual informationProvide disclosure as required by continuing disclosure agreementTo be filed with the Municipal Securities Rulemaking Board (MSRB) through the Electronic Municipal Market Access (EMMA) websiteEvent notices must be submitted to EMMA within ten (10) days of the eventDisclosure required:Annual Financial Reports (CAFR)Other information as required in the continuing disclosure undertaking completed at the time of debt issuance – can vary and will be specific to the issuePopular Annual Financial ReportSummarized and simplified presentation of information contained in the CAFRLess technicalLess detailNotes: ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download