ACCT 260

914. Analyzing Reconciliation of Financial Reports. (L09-4) Use the compre- hensive annual financial report (CAFR) you obtained for Exercise 1-17, or another CAFR you have downloaded for this case. It is recommended that you print a copy of the two government-wide statements (statement of activities and the statement of net position) and the two governmental funds statements (statement of revenues, expenditures, and changes in fund balances and bal- ance sheet). For this assignment it also would be helpful to print the reconcili- ations for the statements. The county administrator presented the financial statements at the last county commission meeting. Unfortunately, she opted not to take a govern- ment accounting course in college, and when the commission started question- ing her about why the "bottom line" numbers on the two sets of financial statements were so different, she was unable to answer their questions. She has asked you, as finance director, to prepare her for the next meeting by explain- ing the purposes for which each operating statement is intended and how and why the operating statement results are so different. Also needed is an explana- tion of how and why the numbers on the statement of net position and balance sheet are so different. Required a. Examine the two operating statements (the statement of activities and the statement of revenues, expenditures, and changes in fund balances) and the reconciliation statement to develop a list of reasons for why the bottom line" number for net change in governmental fund balances is not the same as the number for the change in governmental activities net position. b. Examine the statement of net position and the balance sheet, along with the reconciliation statement, to develop a list of reasons for why the "bottom line" number for total governmental fund balances is not the same as the number for governmental activities net position. c. Provide a simple and concise one-page explanation for the differences in the "bottom lines