It is your first week on the job and to orient you to your new position, your supervisor has given you the following assignment. In approaching this assignment, you want to do an excellent case analysis to make a favorable first impression.

REQUIREMENTS

Please use year 2019 Comprehensive Annual Financial Reports (CAFRs) of YOUR STATE to answer the following case questions. You may download the CAFRs via their websites or googling the key words CAFR & name of YOUR STATE.

Additional Analysis of the CAFR

An article by Chancy, Mead and Schermann (2002) summarizes six government-wide ratios to measure fiscal distress and related financial risk factors of municipalities. One ratio provides an overall measure of financial position for the government. Two ratios provide measures of financial performance. A fourth ratio provides a measure of liquidity. Two final ratios provide measures of solvency. These ratios in comparison to the ratios measured for similar governments, combined with other useful information, provide a starting point for evaluating the overall financial condition of a governmental entity. The definitions and measurements of these ratios and factors are listed in the following table.

Calculate the risk ratios for YOUR STATE for 2019, and answer

What conclusions concerning the sates financial position can be drawn from these ratios?

What conclusions concerning the states liquidity can be drawn from these ratios?

What conclusions concerning the states financial performance can be drawn from these ratios?

What conclusions concerning the states solvency can be drawn from these ratios?