Review the Comprehensive Annual Financial Report (CAFR) that you obtained.
1. What are three main sections of the report?
2. Review the introductory section of the CAFR.
a. Was the entity’s annual report of the previous year awarded a ‘‘certificate of achievement for excellence in financial reporting’’ by the Government Finance Officers Association? What is the significance of this award?
b. What are the key issues addressed in the letter of transmittal?
3. Review the financial section.
a. Which, if any, independent audit firm performed an audit of the CAFR?
b. Did the entity receive an ‘‘unqualified’’ audit opinion? If not, why not?
c. Does the report contain management’s discussion and analysis (MD&A)? If so, what are the key issues addressed?
d. Does the report provide a reconciliation between total governmental net position per the government-wide statement of net position and total governmental fund balances per the governmental funds balance sheet? If so, what are the main reconciling items?
e. What are the major governmental funds maintained by the entity? Does the entity’s fund structure conform to its organizational structure?
f. Does the report include “required supplementary information”? If so, what are the main areas addressed?
g. Does the report include “combining statements”? If so, what is the nature of these statements?
h. Does the report include other supplemental information? If so, what types of information are in this section of the report?
4. Review the statistical section.
a. What is the population of the entity being reported on?
b. Who is the entity’s major employer?
c. What types of information are included in the statistical section?