1–16 Examine the CAFR.Introductory Section.What has the city included in the introductory section of its CAFR? Does it include the items identified in the section of the text titled “Comprehensive Annual Financial Report”?Financial Section.Audit Report. Are the financial statements in the report audited by an independent CPA state auditors or auditors employed by the government being audited? Has the city received an unmodified audit report?Basic Financial Statements. Does the CAFR contain both government-wide financial statements and fund statements? How many financial statements have been included as part of the basic financial statements section of the CAFR?Notes to the Financial Statements. How many notes follow the required basic financial statements? Is there a phrase at the bottom of the basic financial statements indicating that the notes are an integral part of the financial statements?Other Supplementary Information. Following the notes to the financial statements does the CAFR provide other supplementary information such as combining and individual fund statements?Management’s Discussion and Analysis (MD&A). Does the CAFR contain an MD&A? If so where is it located and what type of information does it contain?Statistical Tables.What information has been included in this section of the CAFR?2–14 Examine the CAFR. Utilizing the CAFR obtained for Exercise/Problem 1–16 examine the financial statements included in the financial section and answer the following questions.Government-wide Statements. What are the titles of the two government-wide statements? Are total assets larger for governmental activities or business-type activities? Which function or program has the highest net cost? What kinds of general revenues are available to cover the net cost of governmental activities? Were business-type activities “profitable”? That is is the excess of revenues over expenses positive?Governmental Funds. Does the report state the basis of accounting used for the General Fund? What types of assets and liabilities are included on the governmental funds balance sheet? Is this reporting consistent with the basis of accounting being followed?Identify which of the major funds if applicable are special revenue funds debt service funds capital projects funds and permanent funds. Are you able to determine which funds are considered nonmajor? (Hint: look for supplementary information.) What fund balance categories are being used?Proprietary Funds. List the names of the proprietary fund types included in the financial statements. Do the financial statements provide evidence that all proprietary funds use accrual accounting?Fiduciary Funds. List the names of the fiduciary funds included in the fund financial statements. Identify whether each of these is an agency fund investment trust fund pension (and other employee benefit) trust fund or private-purpose trust fund. Do the financial statements provide evidence as to what basis of accounting these funds use?Notes to the Financial Statements. Read the notes to the financial statements so that you can refer to them as needed in subsequent chapters. What significant accounting policies are discussed in the first note? With regard to revenue recognition how do the notes define the term available for paying current period obligations?9–15 Examine the CAFR. Pg.397d. Service Potential of the CAFR. In your opinion what are the most important information needs that a governmental annual report should fulfill for each of the following:Administrators.Members of the legislative branch.Interested residents.Creditors or potential creditors.In what ways does the CAFR you have analyzed meet the information needs you have specified for each of the four groups assuming that members of each group make an effort to understand reports equivalent to the effort you have made? In what way does the report fail to meet the information needs of each of the four groups?Part 1: Using the Miami Beach CAFR research answers to each question presented inparts “a” through “c” of problem 1-16 starting on page 16of your textbook. Your submission must present the question followed by your solution in the same outline format presented in problem 1-16 except you should create bullet points for the individual questions that problem 1-16 presents in paragraph form. For your convenience I have copied and pasted the text problem at the end of this document. This allows you to create your document without having to retype the text questions. You may copy that material into your own document and insert your responses.You should have a bullet point identifying the question/issue followed by your response to each item listed in your “a. Introductory Section” area. For example: Introduction Section.What has the city included in the introductory section of its CAFR?Your response (including CAFR page number) in colored &/or italicized fontDoes it include the items identified . . . (etc.)Part 2: Using the same approach as for part 1 complete problem 2-14 (a-f) starting on page 62 of your textbook. Specifically regarding item f does the assigned CAFR address contingencies related to climate change &/or sea-level rise?Part 3:Refer to part “d” of problem 9-15 on page 397 of your textbook. Reflect on items 1 through 4 regarding specific needs of the 4 users based on what you’ve learned from our discussions text readings GASB etc.Prepare a brief report (e.g. executive summary) ofno more than two double-spaced pagesaddressing the issue of whether the assigned CAFR meets/fails to meet the needs of users. Be sure to identify the specific needs of each user group listed (Part 3A) and address how well the assigned CAFR meets them. This report will be scored for thoughtful content clarity and conciseness of discussion and form (i.e. spelling grammar etc.). Sloppy haphazard submissions will receive a zero! Present yourself as a professional or at least a graduate student.1. your single file for submission as follows:a.Brief report (from Part 3B)b.Blank page—if you would like you may insert “Page intentionally left blank” on this page (hit CTRL-ENTER after report & start “d” after blank page).c.Your responses to Parts 1 and 2
