1..The finance or accounting director has asked you to report on the funds and financial status of your government entity (pretend he or she is your boss). Your boss will present the information to various users, so current and future decisions can be determined about your government entity.

Using your CAFR,preparea 10- to 12-slide presentation responding to the following:

• Compare private sector financial accounting with accounting for government and not-for-profit organizations.
• Describe the purpose of government accounting and financial reporting.
• What types of funds are listed on the fund financial statements from the CAFR?
• How are the fund balances reported?
• Did the general fund show an increase or decrease in the fund balance? What does this mean?
• What are the primary financial statements issued for the funds? What about total government activities?
• Which statement shows whether your entity is financially better or worse for the year?
• Why is there a reconciliation required between the fund financial statements and government wide statements?
• Is there a budget to actually schedule in the CAFR? What basis did your entity use to prepare the budget? Are there any limitations of the budget to actual comparisons?

2. Using the CAFR from above,preparean 8- to 10-slide presentation using a modality of your choice. Include the following:

1. Select one of the more recently established (and larger) capital projects funds (a major fund, if possible). From where did the fund receive most of its resources?
2. How many capital projects funds and debt service funds does your government entity maintain? How can you tell? Are any of these major or nonmajor funds? If so, for what purposes are they maintained? If any debt service funds are maintained, what types of obligations are they maintained?
3. How are the capital projects and debt service funds reported on the government?wide statement of net position? How are the capital projects and debt service funds reported in the fund financial statements?
4. Are the capital projects and debt service fund accounted for on the modified accrual basis or full accrual basis?
5. Why do governments focus on all economic resources and use the full accrual basis in their government-wide financial statements?

Use as a reference

http://www.gasb.org/jsp/GASB/GASBContent_C/UsersArticlePage%26cid%3D1176156736184

http://gasb.org/cs/ContentServer?c=GASBContent_C&pagename=GASB%2FGASBContent_C%2FUsersArticlePage&cid=1176156736216

http://www.gasb.org/cs/ContentServer?pagename=GASB/GASBContent_C/UsersArticlePage&cid=1176156735732

Private Verses public accounting Private sector accounting has the main goal of gaining profit. In accounting for government, the entity has a duty of fiscal accountability, which is a show of compliance and useful use of resources in the budgetary context. In private sector, the budget is a technique in financial planning, and therefore not mandatory to comply with it. Accounting for Non profit organization Both the NPO and the government sectors must follow GAAP. Both use the three main financial statements i.e. statement of activities, the statement of cash flows, but the third statement is referred differently by each. In government, the third statement is called statement of Net Assets while in NPOs is called statement of financial position. Every financial year, the government must put together CAFR but for NPOs, it is not allowed for them to publish the CAFR. However, NPOs are allowed to collect the financial reports for decision making. Purpose of financial accounting and financial reporting Financial accounting and financial reporting helps the stakeholders of the company to analyze and evaluate how resources will be acquired. The financial accounting and reporting also show stakeholders how resources will be spent. The reporting help the managers to analyze the financial status of the entity They are used for the current and future decisions of the entity by the Board of Directors and investors. Types of funds listed on the fund financial statements from CAFR Government funds: e.g. general funds, special revenue funds, debt service funds, capital project funds and permanent funds. Proprietary funds: e.g. enterprise funds and internal service funds. Fiduciary funds: e.g. fiduciary funds, investment trust funds, pension, Agency funds, and private-purpose trust funds. Fund balance reporting It should include; Issues such as the decisions currently made based on the balance information. The type of information needed for future decision making. Components of fund balance Project plans Fund balance The general fund show an increase in he fund balance. Means operating expenditure are highly volatile. An increase may be seen for compensations for portions of unrestricted fund balance already been committed by the government. Primary financial statement issued for the funds Government fund statements e.g. general fund, capital projects and permanent funds. Proprietary fund financial statements, e.g. financial data for enterprise and internal service funds. Fiduciary fund financial statements. Total government activities should be shown by the Statement of Activities Statement that shows the financial status of entity The balance sheet/ statement of financial position. Shows the financial status of the entity and if its debt position. It shows the financial flexibility of the company to acquire capital and ability to distribute cash in the financial year. Reconciliation of fund financial statements and government-wide statements. The reconciliation should be maintained for GAAP and for budgetary reasons. The government should articulate a framework and process on how it will increase and decrease the level of unrestricted fund balance for a specified period. Basis for preparing the budget CAFR include a budget-to actual comparisons of non-major funds. The Cash plus encumbrances basis of accounting was used to prepare the budget. No limitations of the budget to actual comparisons. References Christensen, T., Cottrell, D., & Baker, R. (2013). Advanced Financial Accounting. McGraw-Hill. Granof, M. H., Khumawala, S. B., Smith, D. L., & Calabrese, T. D. (2016). Government and Not-for-Profit Accounting, Binder Ready Version: Concepts and Practices. John Wiley & Sons