Part 2

Comprehensive Annual Financial Report of Austin Texas Multi-step Project - Part 2

In this module, you will continue your review of the Annual Financial Report of Austin, Texas. In the second portion of the multi-module project, you will focus on the budget to actual comparisons of the major funds.

Now, attempt the following:

? Continuing Problem Chapters 4 and 5

(Tip to follow if that is still acceptable on course hero.)

:- n 3. 4. 5. III: (landmine Annual Financial Report 3' "1 thy-diam W are the sources of the government's rev els, including those from both governmental and hamstype activities? How are revenues from property taxes accounted for, in, as a single amount, or in multiple categories? Idam'fy the various categories and indicate the per centage breakdown. (e.g., residential property taxes are 50 percent of the total property tax revenues.) Which of the entity's governmental functions or activ- ities had the greatest amount of directly identiable revenues? Does the report discuss the accounting basis for rec ognizing revenues? Does the government's governmentwide statement of net position or governmentalnd balance sheet report \"deferred revenue\" (or deferred inows of 10. ll. ICC-JCOICI-I-IDOUQOOOQOICGIIOQGOIODun-OIOCIIIOOIDI'0I.3.0.0....-to...i...IIIUCOICII-IIJIOOOOIIII resources)? If so, what is the most likely reason this amount has been deferred? What is the government's property tax rate? At What percentage of fair market value is real property assessed? When are property taxes due? 'When do interest and penalties begin to accrue? By What percentage did each of the three largest sources of tax revenue increase over the last ten years? Did the government generate revenue from trafc nes? As best you can tell, are these revenues reported in the government-wide statements as program rev enues (e.g., associated with police or public safety) or as general revenues? 'VVhat is the total fund balance in the general fund? Can this amount be appropriated and spent for any purpose? Explain. r_m.,_i___.__w__m__._~._ ........... 1 NTINUING PROBLEM Review the Comprehensive Annual Financial Report (CAFR) that you obtained. 1. How does the government classify its governmental expenditures, by function or by \"object\"? Are the classications approximately the same in both the governmentwide and the fund statements? 2. 'What was the city's largest expenditure for scal. year 2011? By how much did this increase or decrease since FY 2010? Since FY 2005 (see statistical section)? Can you draw any inferences from this comparison as to the efficiency and effectiveness of the city in providing this service? If not, what other information would you need to make such a judgment? 3. What are the major differences in expenditures/ expenses (i.e., reconciling items) as they are reported in the gov- ernmental fund and the governmentwide statements? 4. 8. 9. no.on...not.0.0.0.0....aIn...gooey-ano-o-ooocage-on...Inuoo-uncoo-0....-no...oooooo-ocncoo-o-oacooaooeoooou-o On what basis does the government account for its inventories (purchases or consumption)? Does the City maintain a \"fund balancenonspendable\" amount for inventories? . On what: basis does it account: for insurance or other prepaid items in its governmental funds? How can you tell? To and from, which funds or component units have there been general fund transfers? ' Explain the nature of any governrnental-fuml balance sheet classications related to expenditures. Does the entity report depreciation as an expense in its governmentwide statements? If not, why not? What types of other nancing sources and uses does the governmental entity report: in the general fund? What effect do these items have on the net change in fund balance for the year? ........................................................................................................................................................................................ .numm....uuummmm.m~mu..m--n.a-.---.-.nnunn-munm-mmm-.mmuu-mu-umwuw 1. The three main sections of the report are the introductory, financial and statistical sections. 2. Introductory section (a) The entity's annual report of the previous year was awarded a \"Certificate of Achievement for Excellence in Financial Reporting\" by Government Finance Officers Association of the United States and Canada (GFOA). The significance for the award of a \"Certificate of Achievement for Excellence in Financial Reporting\" is that City of Austin, Texas published an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conformed to program standards. The reports satisfied both generally accepted accounting principles and applicable legal requirements. (p. vi) (b) The key issues addressed in the letter of transmittal include Austin's Government, Economy, and Outlook which include: (p. i-vii) General Information Local Economy Long-term Financial Planning Budgetary Information Major Initiatives American Recovery and Reinvestment Act (ARRA) Financial Policies Internal Controls Budgetary Control Awards Acknowledgments 3. Financial section (a) The independent audit firm that performed an audit of the CAFR is Deloitte & Touche LLP. (b) The entity received an \"unqualified\" audit opinion. In their opinion, the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2011, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. (p. 1). (c) The report contains management's discussion and analysis (MD&A). The key issues addressed were: (p. 3-14) Financial highlights Overview of the financial statements which consists of government-wide financial statements, fund financial statements, notes to the financial statements and other information Financial analysis of the government-wide statements which consists of net assets, change in net assets and program revenues and expenses -governmental activities and business type activities Financial analysis of the government's fund level statements consisting of government funds and proprietary funds Other information like general Fund budgetary highlights, capital assets, debt administration, economic factors and next year's budget and rates and requests for information (d) The report does contain reconciliation between total governmental net assets per the government-wide statement of net assets and total governmental fund balances per the governmental funds balance sheet. Among the main reconciling items are: (p. 21) capital assets capitalized on the government-wide statements but are not reported in the funds other long-term assets reported on the government-wide statements but not on the funds statements internal service fund assets and liabilities reported on the government-wide statements but not on the funds statements Long-term liabilities reported on the government-wide statements but not on the funds statements. (e) The city has only one major governmental fund the general fund: (p. 20) The fund structure does not conform to the city's organizational structure (as set forth in the organizational chart included in the introductory section of the report). (p. viii) (f) The report includes \"required supplementary information\" which include: (pp. 106-112) budget to actual comparisons reconciliation of GAAP basis and budget basis accounts budget amendments retirement plans (g) The report includes \"combining statements. These present financial statements and schedules, by fund type, for the general and non-major governmental and enterprise funds (pp. 113-186). (h) The report also includes other supplemental schedules, such as: (pp. 187-191) enterprise related grants schedule of general obligation bonds authorized and unissued schedule of revenue bonds authorized, de-authorized and unissued 4. Statistical section (a) The population of Austin was 805,662 in 2011. (p. 212) (b) The city's major employer is State Government. (p. 213) (c) The types of information included in the statistical section are: (pp. 194-220) revenue and expenditure trends property tax levies and collections, principal taxpayers value of property direct and overlapping debt, debt margin debt coverage city sales tax electric fund and water and wastewater fund airport statistics hotel-motel occupancy tax vehicle rental tax economic and growth indicators employment characteristics URL https://www.coursehero.com/qa/attachment/2967807 >