Question 1 (20 points)

A Tale of Greenville: A Journey through Governmental Financial Reporting

Once upon a time in the quaint town of Greenville, the Mayor, along with the City Council, embarked on a mission to enhance financial transparency and accountability for the benefit of its citizens. They decided to prepare a comprehensive financial report, shedding light on the city's financial activities and stewardship. Join us as we venture through the enchanting world of governmental financial reporting in Greenville.

The story begins with an overview of the contents of Greenville's financial report. The report comprises several sections, including the management's discussion and analysis (MD&A), financial statements, notes to the financial statements, and the required supplementary information (RSI). The MD&A provides a narrative overview of the city's financial performance and position, making it easier for citizens to understand the numbers.

In this act, we meet the various characters that make up Greenville's governmental reporting entity. It includes the primary government (the City of Greenville) and its component units, such as certain legally separate entities and organizations. As we delve into the complex relationships between the entities, we discover the importance of reporting consolidated financial information to portray a complete picture of the city's financial health.

As our adventure continues, we come across the basic financial statements for the City of Greenfield. We encounter the government-wide financial statements, presenting the financial position and results of operations for all governmental activities and business-type activities. Then, we explore the fund financial statements, providing information about Greenfield's various funds and their financial performance.

In this act, we enter the mystical world of governmental funds. We encounter various funds, including the general fund, special revenue funds, capital projects funds, and debt service funds. Each fund serves a specific purpose and operates with its own unique set of accounts.

In this final act, we uncover the recognition criteria for revenues and expenditures under the modified accrual basis of accounting. We learn that revenues are recognized when they become measurable and available, while expenditures are recorded when the fund liability is incurred. Furthermore, we explore fund balance classifications for governmental funds, understanding the importance of classifying funds into nonspendable, restricted, committed, assigned, and unassigned balances.

With the completion of this magical journey through the world of governmental financial reporting, Greenville's financial transparency and accountability have reached new heights. Citizens are now equipped with the knowledge to understand the city's financial position, enabling them to actively participate in the decision-making process.

What does the management's discussion and analysis (MD&A) provide in a governmental financial report?

Question 1 options:

AFinancial statements for all component units BA narrative overview of the city's financial performance and position CA detailed breakdown of fund-level expendituresDAn analysis of budgetary variances

Question 2 (20 points)

A Tale of Greenville: A Journey through Governmental Financial Reporting

Once upon a time in the quaint town of Greenville, the Mayor, along with the City Council, embarked on a mission to enhance financial transparency and accountability for the benefit of its citizens. They decided to prepare a comprehensive financial report, shedding light on the city's financial activities and stewardship. Join us as we venture through the enchanting world of governmental financial reporting in Greenville.

The story begins with an overview of the contents of Greenville's financial report. The report comprises several sections, including the management's discussion and analysis (MD&A), financial statements, notes to the financial statements, and the required supplementary information (RSI). The MD&A provides a narrative overview of the city's financial performance and position, making it easier for citizens to understand the numbers.

In this act, we meet the various characters that make up Greenville's governmental reporting entity. It includes the primary government (the City of Greenville) and its component units, such as certain legally separate entities and organizations. As we delve into the complex relationships between the entities, we discover the importance of reporting consolidated financial information to portray a complete picture of the city's financial health.

As our adventure continues, we come across the basic financial statements for the City of Greenfield. We encounter the government-wide financial statements, presenting the financial position and results of operations for all governmental activities and business-type activities. Then, we explore the fund financial statements, providing information about Greenfield's various funds and their financial performance.

In this act, we enter the mystical world of governmental funds. We encounter various funds, including the general fund, special revenue funds, capital projects funds, and debt service funds. Each fund serves a specific purpose and operates with its own unique set of accounts.

In this final act, we uncover the recognition criteria for revenues and expenditures under the modified accrual basis of accounting. We learn that revenues are recognized when they become measurable and available, while expenditures are recorded when the fund liability is incurred. Furthermore, we explore fund balance classifications for governmental funds, understanding the importance of classifying funds into nonspendable, restricted, committed, assigned, and unassigned balances.

With the completion of this magical journey through the world of governmental financial reporting, Greenville's financial transparency and accountability have reached new heights. Citizens are now equipped with the knowledge to understand the city's financial position, enabling them to actively participate in the decision-making process.

What comprises Greenfield's governmental reporting entity?

Question 2 options:

AOnly the City of GreenfieldBThe City of Greenfield and neighboring municipalitiesCThe City of Greenfield and private organizationsDThe City of Greenfield and its component units