Comprehensive Annual Financial Report (CAFR) Assessment Download a copy of the most recent CAFR for a local governmental/not-for-profit entity of your choice and familiarize yourself with the contents. The entity’s website is often a great source for this document. The six-to-eight page Final Paper will discuss/analyze the document with at least three scholarly sources in addition to the text and must contain the following sections: 1. Introduction a. Refer to the letter of transmittal or other narrative that accompanies the document. Provide an introduction to the chosen entity. This introduction should contain information regarding the history of the entity, including the mission, services provided, and area or individuals served. 2. Financial Section a. Audit Report i. Discuss the opinion expressed (unqualified or qualified) and the independent firm or government organization providing the opinion. Include a discussion of the statements covered by the opinion (basis statement plus combining statements and fund statements). b. Financial Statements i. Discuss the statements included in the report (government and/or fund statements), including any noted trends or concerns. ii. Discuss each fund utilized by the entity, including the type of fund, source of revenues, noted trends, and financial condition. c. Notes to the Financial Statement i. Discuss the number of notes contained in the report and topics covered. Are any concerns noted after reading the notes? d. Management Discussion and Analysis (MD&A) i. Discuss the provided MD&A, including any concerns, trends, and anticipated changes. 3. Operations a. Capital Assets - Capital assets include land, buildings, improvements, vehicles, machinery, infrastructure assets and equipment. i. Discuss the capital assets reported on the government-wide statement and the note disclosures regarding balance changes as well as policies regarding depreciation and capitalization thresholds. b. General Long-term Liabilities and Debt Service Funds - Long term liabilities can come from capital leases, bonds, notes, and operating activities. Long term liabilities can come from capital leases, bonds, notes, and operating activities. i. Discuss any noted general Long-term Liabilities, including changes, debt limitations, and any overlapping debt. ii. Discuss whether a Debt Service Fund is noted, including the debt instrument being serviced by the fund. c. Internal Service and Enterprise Funds - Enterprise Funds are funds established to finance and account for the acquisition, operation, and maintenance of governmental facilities and services that are entirely or predominantly self-supporting by user charges. A city utility is an example of goods or services being provided to the public by the government. These activities are accounted for by an enterprise fund. Internal Service Fund are funds established to finance and account for services and commodities furnished by a designated department or agency to other departments and agencies within a single government or to other governments. i. Discuss whether any activities are administered by an internal service or enterprise fund. If an internal service fund is not utilized, note how activities commonly used by more than one fund such as purchasing and printing are handled. Note whether any enterprise fund is operating at a deficit, and if so, how it is handled. ii. Discuss any regulations governing the operations of the enterprise fund(s). d. Fiduciary Funds i. Discuss whether any fiduciary activities are reported noting the fund utilized, purpose, and basis of accounting used. 4. Recommendations a. As a result of reviewing the CAFR, discuss any recommendations you might have for improving the financial position of the entity. Keep in mind any items noted in the audit report, MD&A, as well as foot notes. 5. Conclusion a. Summarize your findings, including any noted trends and concerns. The CAFR Assessment 1. Must be six to eight double-spaced pages in length (excluding the title and reference pages), and formatted according to APA style as outlined in the Ashford Writing Center. 2. Must include a title page with the following: Title of paper Student’s name Course name and number Instructor’s name Date submitted 3. Must begin with an introductory paragraph that has a succinct thesis statement. 4. Must address the topic of the paper with critical thought. 5. Must end with a conclusion that reaffirms your thesis. 6. Must use at least three scholarly sources from the Ashford University Library, in addition to the text. 7. Must document all sources in APA style as outlined in the Ashford Writing Center. 8. Must include a separate reference page that is formatted according to APA style as outlined in the Ashford Writing Center. Materials to Look AT City of Alexandria, Louisiana Financial Statement (2017, April 30). Retrieved from https://www.cityofalexandriala.com/sites/default/files/PDF%20COPY%20%20COA%204-30-2017.pdf Governmental Accounting Standards Board (GASB). (1999). Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. GASB Statement No. 34. Retrieved from http://www.gasb.org/st/summary/gstsm34.html Nonprofit Accounting Explanation | AccountingCoach. (n.d.). Retrieved from https://www.accountingcoach.com/nonprofit-accounting/explanation Elmerraji, J. (2007, June 1). Cracking the nonprofit accounting code. Forbes. Retrieved from http://www.forbes.com/2007/06/01/nonprofits-financial-statements-pf-educationin_je_0601investopedia_inl.html References from class by teacher Cohn, Michael. (August 18, 2016). “FASB Releases Not-for-Profit Accounting Standard.” AccountingToday.com Retrieved from https://www.accountingtoday.com/news/fasb-releases-not-for-profit-accountingstandard Krumpp, Lee. (Sept. 16, 2016). “FASB’s Changing Classifications for Nonprofit Assets.” [Video] AccountingToday.com Retrieved from https://www.accountingtoday.com/video/fasbs-changing-classifications-fornonprofit-assets Background info that might help (from Ashford library) D'Alessandro, G. (1994). Local government deficits. CPA Journal, 64(2), 40. Retrieved from http://search.ebscohost.com.proxylibrary.ashford.edu/login.aspx?direct=true&db=bsh&AN=9410052182&site=eds-live&scope=site Levy, H. B. (2018). The Audit Report Returns to Its Roots. CPA Journal, 88(2), 66-68. Retrieved from http://search.ebscohost.com.proxylibrary.ashford.edu/login.aspx?direct=true&db=bsh&AN=128446857&site=eds-live&scope=site
