PT1

(SF fiscal 2019 CAFR report)

1. What are three main sections of the report?

2. Review the introductory section of the CAFR. What are key issues addressed in the letter of transmittal?

3. Review the financial section.

a. Does the report provide a reconciliation between total governmental net position per the government-wide statement of net position and total governmental fund balances per the governmental funds balance sheet? If so, what are the main reconciling items?

b. What are the major governmental funds maintained by the entity?

c. Does the report include required supplementary information? If so, what are the main areas addressed? d. Does the report include combining statements? If so, what is the nature of these statements?

4. Review the statistical section.

a. What is the population of the entity being reported on?

b. Who is the entitys major employer?

c. What is the amount of net debt per capita? The citys legal debt margin? The amount of direct and overlapping debt?

5. Component units

a. Does the notes to the financial statements indicate the component units that are included within the reporting entity? Do they indicate any units that are not included? Do they explain why these units are included or excluded? If so, describe them in your own words.

b. How are the component units presented in the government-wide financial statements? In the fund statements

PT2

1. In which section of the CAFR are the budget-to-actual comparisons of the major funds?

a. Which accounting basis did the City follow to prepare its annual operating budget?

b. Are the actual amounts on a GAAP or a budgetary basis? Do the statements include a reconciliation of any differences between GAAP and budgetary amounts? If so, what are the largest reconciled items?

c. Are the reported variances based on the original budget or the year-end amended budget?

2. Does the CAFR include budget-to-actual comparisons of nonmajor funds? If so, in what sections?

3. Do encumbrances that remain outstanding at year-end lapse? That is, do the amounts that will be expended in the following year, when the goods or services are received, have to be rebudgeted in the following year? How?

PT 3

1. What are the main sources of the governments revenues, including those from both governmental and business-type activities?

2. Does the report discuss the accounting basis for recognizing revenues for governmental funds? If so, describe in your own words.

3. Does the governments government-wide statement of net position or governmental-fund balance sheet report deferred revenue? (or deferred inflows of resources)? If so, what is the most likely reason this revenue has been deferred?

4. When are property taxes due? When do interest and penalties begin to accrue?

5. What is the total fund balance in the general fund? Can this amount be appropriated and spent for any purpose? Explain.

6. What are the major differences in expenditures/expenses (i.e., reconciling items) as they are reported in the governmental fund and the government-wide statements?

7. On what basis does the government account for its inventories (purchases or consumption)? Does the City maintain a fund balance---nonspendable amount for inventories? (This one may not be easy to find. Try the best you can. If none is found, just state what you learned about reporting inventories in governmental funds from the class)

8. To and from which funds or component units have there been general fund transfers? 3

9. What types of other financing 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?

10. How many capital projects funds does the government maintain? How can you tell? Are any of these major funds? If so, for what purposes are they maintained?

11. How many debt service funds does the government maintain? How can you tell? Are any of these major funds? If so, for what types of obligations are they maintained?

12. How are the capital projects and debt service funds reported in the government-wide statement of net position?

13. Did the government capitalized infrastructure assets acquired during the year? Did it account for infrastructure assets using the standard or modified approach?

14. In addition to bonds payable, what other kinds of long-term debt for governmental activities did the city report in its statement of net position?

15. Does the government maintain any permanent funds? If so, are they major or nonmajor funds and for what purposes?

PT4

1. How are the internal service fund activities reported in the government-wide statement of net position? How are they reported in the proprietary funds statement of net position?

2. Were any if the governments enterprise funds profitable during the year? If so, what has the government done with the earnings? Has it transferred them to the general fund?

3. Do the financial statements include a statement of cash flows for proprietary funds? In how many categories are the cash flows presented? Is the statement on a direct or indirect basis?

PT5

1. Does the government maintain any fiduciary funds? If so, for what purposes?

2. Does the government maintain any custodial (or agency) funds? How many and for what purposes?

3. Does the government contribute to one or more pension plans? Are they defined benefit or defined contribution plans? If they are defined benefit plans, are they single employer (maintained by the government itself) or multiple employer?

4. Does the government report pension expenses or expenditure? If so, in which fund or funds?

5. Does the government report pension liabilities? If so, in which fund or funds?

6. Does the CAFR indicate the amount of net pension liability? Are the plans over- or underfunded?