Governmental Financial
Statement Analysis
 Who uses S & L Government
financial statements?

Citizen Groups
 Legislative oversight officials
 Investors and Creditors
 The Public Finance Market
 Primary (Original Issues)
 Secondary (Existing issues)
Financial Statement Analysis
State and Local Governments
 Net Debt Per Capita: LTD/population
 LTD is adjusted by amount available
 Net Debt Per Fair Value of Property
 LTD/Fair Value of Property
 Interest Coverage: Enterprise Funds
 Operating Income/Interest Charges
 Debt Service/Total Revenues
 Debt Service Exp/Total Revenues
Accounting for Special
Purpose Government Entities
 General Purpose Governments
 State
and local governments that provide
multiple services
 Follow accounting as we have studied
Chapters 2-8
 Special Purpose Governments
 Limited,
sometimes one type of service
 Fire protection, Library, Public Schools
Accounting Blips-Special
Purpose Funds
 Categories as to activities
 Single governmental activity

Combined G-W and Fund Financial Statements
 More

than one governmental activity
GASB 34 to include G-W and Fund Statements
 Both
governmental and business-type
activities

GASB 34 and 35; G-W and Fund Statements
 Only
business-type activities (GASB 34-35)
 Only Fiduciary Activities (GASB 34)
Public Colleges and Universities
 Pre-GASB 35
 AICPA Model or S & L Government Model
 GASB 35 amends GASB 34 to include
Public Colleges and Universities in S & L
Government category
 Same implementation dates
 Reporting Categories
 Only governmental activities
 Both governmental and business-type
 Only business-type activities
Accounting Notes-Public C & U
 Most will probably report as entities engaged
only in business-type activities
 Accrual basis of accounting and economic
resources measurement focus
 Net Assets



Invested in Capital Assets, net of related debt
Restricted (Expendable and Nonexpendable)
Unrestricted
 Capital assets and Infrastructure reported same
as GASB 34
 Foundations are often set up to manage
restricted assets
Public C and U Continued
 Tuition discounts and scholarships for which




no work is performed reported as revenue
reductions
Statement of Net Assets broken down into
current and non-current assets and liabilities
similar to FP business
Operating Income is distinctively displayed on
Statement of R, E, and Changes in Net
Assets
Non-operating revenue includes State
appropriations, Gifts, and Investment Income
Cash Flow Statement is similar to B-T GASB
34