Government-wide Statements.

What are the titles of the two government-wide statements? Are total assets larger for governmental activities or business-type activities? Which function or program has the highest net cost? What kinds of general revenues are available to cover the net cost of governmental activities? Were business-type activities profitable? That is, is the excess of revenues over expenses positive? Are there any component units that are discretely presented as a column on the government-wide financial statements?

General Fund.

What title is given to the fund that functions as the General Fund of the reporting entity? Does the report state the basis of accounting used for the General Fund? What types of assets are included on the governmental funds balance sheet? Do current and noncurrent assets appear on the balance sheet? Do current and noncurrent liabilities appear on the balance sheet? Is this reporting consistent with the basis of accounting being followed?

Other Governmental Fund Types.

List the names of governmental funds other than the General Fund that are included as major funds in the fund financial statements. Identify which of the major funds, if applicable, are special revenue funds, debt service funds, capital projects funds, and permanent funds.

Proprietary Funds.

List the names of the proprietary fund types included in the financial statements. Do the financial statements provide evidence that all proprietary funds use accrual accounting?

Fiduciary Funds.

List the names of the fiduciary funds included in the fund financial statements.

Identify whether each of these is an agency fund, investment trust fund, pension trust fund, or private-purpose trust fund. Do the financial statements provide evidence as to what basis of accounting these funds use?

Notes to the Financial Statements.

Read the notes to the financial statements so that you can refer to them as needed in subsequent chapters. What significant accounting policies are discussed in the first note? Does the note describe the entities that are included as component units? Does it list entities that are not considered component units? Are there any notes that disclose (1) any material violations of legal provisions, (2) deficit fund balances or net assets, or (3) significant commitments or contingencies