Please use the 2020 Comprehensive Annual Financial Reports (CAFRs) of NEW YORK STATE to answer the following case questions. Part I: Basic information of the Comprehensive Annual Financial Report (CAFR) 1. Review the introductory section of the CAFR and provide the following information to the mayors office: a. Was the entitys annual report of the previous year awarded a certificate of achievement for excellence in financial reporting by the Government Finance Officers Association? What is this award for? b. What are the key issues addressed in the letter of transmittal? 2. Review the financial section and provide the following information to the mayors office: a. Which, if any, independent audit firm performed an audit of the CAFR? b. Did the entity receive an unqualified audit opinion? If not, why not? 3. Review the statistical section and provide the following information to the mayors office: a. What is the population of the entity being reported on? b. What types of information are included in the statistical section? Part II: Preliminary Analysis of the State CAFR 1. Review Statement of Net Position. Find The total assets, total deferred outflow of resources, total liabilities, total deferred inflow of resources, total net position, unrestricted net position, and restricted net position. Is total the net position deficit or positive? Explain to the office what does a deficit/positive net position mean? 2. Review Statement of Activities of 2020. Calculate/find Total expense Total PG revenue, total CU Revenue, and General Revenue Change in Net Position Note: PG stands for Primary Government; CU stands for component unit Part III: Additional Analysis of the CAFR (1) An article by Chancy, Mead and Schermann (2002) summarizes 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. A second ratio provides measures of financial performance. A third ratio provides a measure of liquidity. A fourth provides measure 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. Financial Ratios Measure of: Calculation: Financial Position Unrestricted Net Assets/Expenses Financial Performance Change in Net Assets/Total Net Assets Liquidity Cash + Current Investments+ Receivables/ Current liabilities Solvency Long-term Debt/Assets Calculate the risk ratios for state, and answer: a. What conclusions concerning the states financial position can be drawn from these ratios? b. What conclusions concerning the states liquidity can be drawn from these ratios? c. What conclusions concerning the states financial performance can be drawn from these ratios? d. What conclusions concerning the states solvency can be drawn from these ratios?