ACFR (Annual Comprehensive Financial Report) Project Part 2

City of New Britain Fiscal Year Ended June 30, 2021.

This is Part 2 of a 3-part Comprehensive Annual Financial Report Project. Part 2 of the project relates to the following Course Learning Objective.

CLO2: Interpret and analyze accounting reports and financial statements for governmental agencies, cities, and states (Links to AoL1, AoL2, AoL3, AoL4).

The Learning Objectives for CAFR Part 2 are:

1. Identify the major sections and components of a CAFR
2. Identify Capital Project funds
3. Identify Long-term Debt
4. Identify Proprietary Funds

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Part 2 (74 points) You may find it helpful to look at the Table of Contents for some supplemental supporting schedules.

CH 5 Other Governmental Fund Types: Capital Projects, Debt Service, and Permanent Note: The City of New Britain does not separate Capital Projects and Debt Service Funds. The chapter 5 questions will relate to various capital projects and debt service activities.

16. Examine the Transmittal Letter to answer the following questions (8 points)
    1. What is the total general obligation bonds outstanding?
    2. Under the current statutes, what is the legal limitation based?
    3. What is the legal limit amount?
    4. What is the City of New Britains net general obligation bonded debt amount?

17. Examine the Managements Discussion and Analysis to answer the following questions (10 points)

1. What was the tax collection rate, i.e., taxes collected/taxes levied?
2. What is the total Capital Assets for CY 2021?
3. What are the two largest capital assets?

Name	Amount

4. What is the Citys Standard & Poors general obligation bond rating?

18. Review the Notes to the Financial Statements for Capital Assets. (5 points)
    1. What Note number is for Capital Assets?
    2. What is the Total Capital Asset for Infrastructure before depreciation, accumulated depreciation, and net of depreciation.

Infrastructure before depreciation
Accumulated depreciation
Infrastructure, net of depreciation
Does this equal the amount for Infrastructure reported in the MD&A in Q17?

19. Review the Notes to the Financial Statements for Long-term Debt. (5 points)
    1. What is the Note number for Long-term Debt?
    2. What is the lowest interest rate? What is the highest interest rate?
    3. From the Consolidated School District. What is the most recent long-term debt issue(s) and the date(s)? When do they mature?

CH 6 Proprietary Funds

Review the Financial Statements for Proprietary Funds (Exhibits V,VI, and VII)

20. Review the Statement of Net Position (4 points)
    1. Is the Net Position or the Balance Sheet format used?
    2. Is the statement classified between current and non-current assets and liabilities?
    3. Is the net position broken down into the three classifications shown in the textbook?
    4. Is a separate column shown for internal service funds?

21. Review the Statement of Revenues, Expenses, and Changes in Net Position (7 points)
    1. Is the all-inclusive format used?
    2. Are revenues reported by source?
    3. Are expenses (not expenditures) reported by function or by object-classification?
    4. Is depreciation reported separately?
    5. Is operating income displayed?
    6. Are nonoperating revenues and expenses shown separately after operating income?
    7. Are capital contributions and transfers shown separately?

22. Review the Statement of Cash Flows (16 points)
    1. List the four categories of cash flows and their amounts for Business-Type Activities?

2. What was the total increase/(decrease) in Cash and cash Equivalents for Business-Type Activities?
3. Are interest payments shown as financing activities? If yes, what is the amount?
4. Is the direct method used?
5. Is a reconciliation shown from operating income to net cash provided by operations?
6. Are capital assets acquired from financing activities shown as decreases in cash flows from financing activities?
7. What is the ending cash balance for the Water Enterprise Fund?
8. What is the ending cash balance for the Internal Service Funds?
9. Does the ending cash balance agree with the cash balance shown in the Statement of Net Position (note that restricted assets may be included)?

For the questions below refer to the Internal Service Funds section (Exhibits C-1, C-2, and C-3)

23. What are the names of the financial statements called for the Internal Services Funds? (3 points)

24. What are the four Internal Service Funds and Net Position Amount? (8 points)

1.
2.
3.
4.

25. What is the amount of Change in Net Position for each of the Internal Service Funds? (8 points)

1.
2.
3.
4.