I need help answering question "1-6" please!
Questions and Exercises 1-1. 1-2. 1-3. 1-4. 1-5. 1-6. Obtain a copy of a recent Comprehensive Annual Financial Report (CAFR). These may commonly be obtained from the website of a city or county of your choice. It would be best, but not absolutely necessary, to use a CAFR that has a Certificate of Excellence in Financial Reporting from the Government Finance Officers Association. You will be answering questions related to the CAFR in Chapters 1 through 8. Answer the following questions related to your CAFR. a. What are the inclusive dates of the fiscal year? b. Identify the name and address of the independent auditor. Is the auditor's opinion unmodified? If not, describe the modification. Is the opinion limited to the basic financial statements, or does the opinion include combining and individual fund statements? c. Does the report contain an organization chart? A table of contents? A list of principal officials? A letter of transmittal? Is the letter of transmittal dated and signed by the chief financial officer? List the major items of discussion in the letter of transmittal. d. Does the report include a Management's Discussion and Analysis? List the major items of discussion. e. Does the report include the government-wide statements (Statement of Net Position and Statement of Activities)? f. Does the report reflect fund financial statements for governmental, proprietary, and fiduciary funds? List those statements. List the major governmental and proprietary funds (the funds that have separate columns in the governmental and proprietary fund statements). Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board's Why Governmental Accounting and Financial Reporting Is-and Should Be Different. Identify and briefly describe the three organizations that set standards for state and local governments, the federal government, and nongovernmental not-for-profit organizations. What is the definition of a government as agreed upon by the FASB and GASB? page 17 Describe the "hierarchy of GAAP for state and local governments. Accounting and financial reporting for state and local governments use, in different places, either the economic resources measurement focus and the accrual basis of accounting or the current financial resources measurement focus and the modified accrual basis of accounting. Discuss the differences in measurement focus and basis of accounting related to (a) the conceptual differences. (6) differences in revenue recognition, (C) differences in expense/expenditure recognition, (d) differences in recognition of fixed assets, and (@) differences in the recording of long-term debt. Distinguish between private and public sector organization. Go to the GASB website (www.gasb.org). What is the mission of GASB? For each of the items below, identify which fund(s) would be used to account for the item and provide a justification for your answer. a. A city government issued general obligation bonds to finance the construction of a new jail. b. A tax of $1.00 per residential phone number is collected by a city government from the phone company. This amount is required by state law to be used for the operation of the 911 emergency phone system. c. A county government expended $1 million to expand the water treatment plant. d. A donor signed a trust agreement and provided investments totaling $4 million to create an endowment, the earnings of which will be used to provide scholarships. e. A donor provided $50,000 to be used to purchase newspaper and magazine subscriptions for the public library. There is no requirement that the original principal may not be spent. f. A city government sold surplus street maintenance trucks for $10,000. g. A city government contributed $500,000 to a pension trust administered by the city for its teachers, public safety employees, and employees of the water department. 1-7 1-8. 1-9. Questions and Exercises 1-1. 1-2. 1-3. 1-4. 1-5. 1-6. Obtain a copy of a recent Comprehensive Annual Financial Report (CAFR). These may commonly be obtained from the website of a city or county of your choice. It would be best, but not absolutely necessary, to use a CAFR that has a Certificate of Excellence in Financial Reporting from the Government Finance Officers Association. You will be answering questions related to the CAFR in Chapters 1 through 8. Answer the following questions related to your CAFR. a. What are the inclusive dates of the fiscal year? b. Identify the name and address of the independent auditor. Is the auditor's opinion unmodified? If not, describe the modification. Is the opinion limited to the basic financial statements, or does the opinion include combining and individual fund statements? c. Does the report contain an organization chart? A table of contents? A list of principal officials? A letter of transmittal? Is the letter of transmittal dated and signed by the chief financial officer? List the major items of discussion in the letter of transmittal. d. Does the report include a Management's Discussion and Analysis? List the major items of discussion. e. Does the report include the government-wide statements (Statement of Net Position and Statement of Activities)? f. Does the report reflect fund financial statements for governmental, proprietary, and fiduciary funds? List those statements. List the major governmental and proprietary funds (the funds that have separate columns in the governmental and proprietary fund statements). Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board's Why Governmental Accounting and Financial Reporting Is-and Should Be Different. Identify and briefly describe the three organizations that set standards for state and local governments, the federal government, and nongovernmental not-for-profit organizations. What is the definition of a government as agreed upon by the FASB and GASB? page 17 Describe the "hierarchy of GAAP for state and local governments. Accounting and financial reporting for state and local governments use, in different places, either the economic resources measurement focus and the accrual basis of accounting or the current financial resources measurement focus and the modified accrual basis of accounting. Discuss the differences in measurement focus and basis of accounting related to (a) the conceptual differences. (6) differences in revenue recognition, (C) differences in expense/expenditure recognition, (d) differences in recognition of fixed assets, and (@) differences in the recording of long-term debt. Distinguish between private and public sector organization. Go to the GASB website (www.gasb.org). What is the mission of GASB? For each of the items below, identify which fund(s) would be used to account for the item and provide a justification for your answer. a. A city government issued general obligation bonds to finance the construction of a new jail. b. A tax of $1.00 per residential phone number is collected by a city government from the phone company. This amount is required by state law to be used for the operation of the 911 emergency phone system. c. A county government expended $1 million to expand the water treatment plant. d. A donor signed a trust agreement and provided investments totaling $4 million to create an endowment, the earnings of which will be used to provide scholarships. e. A donor provided $50,000 to be used to purchase newspaper and magazine subscriptions for the public library. There is no requirement that the original principal may not be spent. f. A city government sold surplus street maintenance trucks for $10,000. g. A city government contributed $500,000 to a pension trust administered by the city for its teachers, public safety employees, and employees of the water department. 1-7 1-8. 1-9
