Comprehensive Annual Financial Report Analysis

Comprehensive Annual Financial Report Analysis

 
CAFR Project This assignment is designed for you to gain greater familiarity with the CAFR and financial statements prepared by a city – this is essentially similar to an audit planning exercise should you be assigned to complete an audit of a state or local government entity. You will respond to questions that the instructor will provide regarding the comprehensive annual financial report (CAFR) of a selected city or county that has over $500 million in revenues. This assignment will include narrative responses using the assignment template supported by cross-references to pdf page number references or highlighted pages within a CAFR pdf document for the city or county selected (both the template and the CAFR pdf must be uploaded). Grading will be based on accuracy and quality of responses, organization and quality of cross-referencing, and the overall professionalism of the submitted package. Assignment No. 1 Student Name: Name of Entity: Reporting Period: CAFR Weblink Audit Planning Requirement: a) What is the reporting entity? Are component units included? If so, identify them and indicate whether discrete or blended presentation is used. b) Summarize three key points highlighted in the Management Discussion and Analysis. c) Summarize three key points from Note 1 – Summary of Significant Accounting Policies. d) Who performed the audit of the financial statements? What type of audit opinion was received? If other than unqualified, please provide details. e) Identify the specific names of each of the financial statements included in the CAFR. CAFR Page Number or Link: Comments: f) Identify the specific governmental funds that were considered to be ‘major’ in the CAFR. g) Identify if there any fiduciary funds and if so, please name them, and provide their purpose? h) Identify any internal service or enterprise funds, list them, provide their purpose, and determine if they are self-sustaining? i) In terms of expenses on the Statement of Activities, please list the largest three programs from an expense perspective and report the program revenues and expenses for each of those programs. Are they selfsustaining? j) In terms of general revenues on the Statement of Activities, please list the largest three types of revenues and the dollar amounts of the associated revenues. k) In terms of revenues on the Statement of Revenues, Expenditures, and Changes in Fund Balance, please list the largest three types of revenues and the dollar amounts of the associated revenues. l) What are the three largest asset line items and three largest liability line items reported on the Statement of Net Position and what are the amounts associated with each? m) What are the three largest asset line items and the three largest liability line items reported on the Balance Sheet and what are the associated amounts? n) What are the primary elements of the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets – Governmental Activities Net Assets? o) Identify the amount of the Net Change in Fund Balance? Did it increase or reduce fund balance? p) Please prepare horizontal and vertical analysis of the asset component of the entity’s Balance Sheet and highlight any areas of significant change that might require explanation during an audit. q) Identify if the CAFR includes any references to questioned costs from audits and describe them, if noted. r) From the statistical section of the CAFR, identify three specific key performance (operating, financial) metrics or statistics used to gauge performance of city services? s) Identify strengths and weaknesses for the entity and any trends that may impact their future financial health? t) Conduct an internet search and determine if there are any significant controversie