Access a state or local government’s CAFR for the last two years.

1. Go to the General Fund Balance Sheet (likely included in the Governmental Funds Balance Sheet). Compare key assets, liabilities, and the fund balance for the past two years. Point out any change that causes concern.

2. Go to the Revenues, Expenditures, and Changes in Fund Balances—

General Fund section (likely included in the Revenues, Expenditures, and Changes in Fund Balances—Governmental Funds section).

Compare key items of revenues and expenditures and fund balance for the past two years. Specify any change that causes concern.

3. Go to the Statement of Net Assets—Proprietary Funds. Compare key accounts of assets, liabilities, and net assets for the past two years. Specify any change that causes concern. If a jurisdiction has multiple enterprise funds, which is very likely, you could add up the items in all of the funds or select one or two of the largest funds for your analysis.

4. Go to the Revenues, Expenditures, and Changes in Net Assets—

Proprietary Funds section. Compare key items of revenues, expenditures, and change in net assets for the past two years. Specify any change that causes concern. If a jurisdiction has multiple enterprise

(or internal service) funds, you could add up the items in all of the funds or select one or two of the largest funds for your analysis.

5. Go to the Statement of Cash Flows—Proprietary Funds. Compare the key sources of cash flows for the past two years. Specify any change that causes concern. Again, if a jurisdiction has multiple funds in this fund category, you could add up the items in all of the funds or select one or two of the largest funds for your analysis.

6. Go to the Statement of Fiduciary Net Assets. Compare key accounts of assets, liabilities, and net assets for the past two years. Specify any change that causes concern. If a jurisdiction has multiple fiduciary funds, you could add up the items in all of the funds or select one or two of the largest funds for your analysis.

7. Go to the Statement of Changes in Fiduciary Net Assets. Compare key accounts of additions, deductions, and net assets for the past two years. Specify any change that causes concern. Again, if a jurisdiction has multiple fiduciary funds, you could add up the items in all of the funds or select one or two of the largest funds for your analysis.