Research CaseRevenue and Expense/Expenditure Classification. Locate a

comprehensive annual financial report (CAFR) using a city's Web site. Many cities,

particularly those with a population greater than 25,000, publish their CAFRs on

the city's official Web site. At the city's Web site, access a list of the city's

departments and select "Department of Finance," or the one most similar to

that name. With a little navigation, the CAFRs link can usually be located.

Examine the city's government-wide statement of activities and statement of

revenues, expenditures, and changes in fund balancesgovernmental funds and

prepare brief report responding to the following questions.

a . Referring to the government-wide statement of activities, explain how the

program revenues and expenses are classified. Are expenses and program

revenues reported using a function or program classification? Does any function

or program categories show net revenues, or do they all show net

expenses? Is the fact that most, if not all, functions or programs show a net

expense a problem? Why or why not?

b . Explain how revenues are classified and reported on the statement of revenues,

expenditures, and changes in fund balances. Compare the amount

reported for property taxes in this statement to the amount reported as general

revenue on the statement of activities. Do the two amounts agree? If not, can

you think of a reasonable explanation for the difference?

c. Explain how expenditures are classified and reported on the statement of revenues,

expenditures, and changes in fund balances. Compare these amounts

to the amounts reported as expenses for the same functions or programs on

the statement of activities. Do the amounts agree? If not, can you think of a

reasonable explanation for the differences?