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  1. 1. Statement of Activities - Example Program Revenues Direct Exp. Net Revenue (Expense) General Revenue
  2. 2. Statement of Activities - Example Direct Program Net Rev. Expenses Revenues (Expense) Function Governmental Public Safety $664,068 $23,381 ($640,687) Transportation $888,232 $40,979 ($847,253) Business-type Public water $472,686 $733,915 $261,229
  3. 3. Fund Financial Statements <ul><li>Governmental Funds </li></ul><ul><li>Proprietary Funds </li></ul><ul><li>Fiduciary Funds </li></ul><ul><li>Major vs. Non-major funds </li></ul>
  4. 4. Fund Financial Statements <ul><li>Governmental Funds </li></ul><ul><li>Measurement focus – financial resources vs. economic resources </li></ul><ul><li>Basis of Accounting – Modified accrual </li></ul><ul><li>Long term assets (infrastructure, buildings, land) not reported here) </li></ul><ul><li>Long-term liabilities not reported </li></ul><ul><li>Major funds – General Fund, others </li></ul>
  5. 5. Governmental Fund Financial Statements <ul><li>Balance Sheet </li></ul><ul><ul><li>Fund balance = assets – liabilities </li></ul></ul><ul><ul><li>Fund balance vs. Net Assets in government-wide statements </li></ul></ul><ul><li>Statement of revenues, expenditures, and changes in fund balances </li></ul><ul><ul><li>Expenditures vs. expenses </li></ul></ul><ul><ul><li>Other financing sources & uses </li></ul></ul><ul><li>Budgetary comparison statement </li></ul>
  6. 6. Fund Financials (Gov’t) – Balance Sheet Assets Liabilities Fund Balance
  7. 7. Fund Financials (Gov’t.) – Balance Sheet Fund balances: Reserved for: Debt service - Capital projects - Economic incentives $8,000,000 Other purposes - Unreserved reported in: General fund $44,874,259 Total fund balances $52,874,259
  8. 8. Fund Financials – Statement of revenues, expenditures, & changes in fund balances Revenues Expenditures Other Sources (Uses) Fund Balance Change
  9. 9. Fund Financials – Statement of revenues, expenditures, & changes in fund balances Revenues $108,736,860 Expenditures $96,727,072 Other financing sources (uses) ($9,457,485) Net change in fund balance $2,552,303 Beginning fund balance $50,321,956 Ending fund balance $52,874,259
  10. 10. Fund Financials Analysis (Governemental) <ul><li>Fund balance related to expenditures </li></ul><ul><li>Fund balance policies (5%-25% requirements) </li></ul><ul><li>Unreserved fund balance = $44,874,259 </li></ul><ul><li>Divided by total expenditures ÷ $96,727,072 </li></ul><ul><li>Equals fund balance percentage 46.4% </li></ul>
  11. 11. Fund Financials Analysis (Governmental) <ul><li>Percentage change in fund balance </li></ul><ul><li>Inc. (dec.) in fund balance $2,552,303 </li></ul><ul><li>÷ by beginning fund balance ÷ $50,321,956 </li></ul><ul><li>= fund balance change percentage 5.1% </li></ul>
  12. 12. Fund Financial Statements <ul><li>Proprietary Funds </li></ul><ul><li>Measurement focus – economic resources </li></ul><ul><li>Basis of Accounting – full accrual </li></ul><ul><li>Like government-wide statements </li></ul><ul><li>Major funds - 10%/5% rule </li></ul>
  13. 13. Proprietary Fund Financial Statements <ul><li>Balance Sheet/ Statement of Net Assets </li></ul><ul><ul><li>Assets – liabilities = equity or net assets </li></ul></ul><ul><ul><li>Assets & liaibilities classified as current & non-current </li></ul></ul><ul><li>Statement of revenues, expenses, and changes in fund net assets </li></ul><ul><ul><li>Expenses vs. expenditures </li></ul></ul><ul><li>Statement of Cashflows </li></ul>
  14. 14. Proprietary Funds – Balance Sheet
  15. 15. Proprietary Funds – Balance Sheet
  16. 16. Proprietary Funds – Balance Sheet
  17. 17. Proprietary Funds – Balance Sheet Solid Waste Assets: Current Assets $34,931,102 Non-current Assets $26,319,398 Total Assets: $61,250,500 Liabilities: Current Liabilities $4,621,033 Non-current Liabilities $8,572,158 Total Liabilities: $13,193,191 Total Net Assets: $48,057,309
  18. 18. Proprietary Funds – Balance Sheet Debt/Asset Ratio: Solid Waste = $13,193,191 ÷ $61,250,500 = 0.215 or 21.5% Golf Course = $5,097,323 ÷ $7,781,428 = 0.655 or 65.5%
  19. 19. Proprietary Funds – Balance Sheet Comparison Key Indicators: Indicator Solid Waste Golf Course Debt/Asset Ratio 21.5% 65.5% Cash (unrestricted) $19,155,064 $15,153 Net Assets $48,057,309 $2,684,105 Unrestricted Net Assets $21,768,326 ($554,140) Fund Balance % Budget 191.9% -21.6% Current Ratio 7.56 0.19
  20. 20. Proprietary Funds – Statement of Revenues, Expenses, & Changes in Net Assets
  21. 21. Proprietary Funds – Statement of Revenues, Expenses, & Changes in Net Assets
  22. 22. Proprietary Funds – Statement of Revenues, Expenses, & Changes in Net Assets Ratios: Operating Income = Operating Rev. – Operating Exp. = $3,313,994 - $2,570,672 = $743,322 Operating Margin = Operating Income ÷ Operating Exp. = $743,322 ÷ $2,570,672 = 0.289 or 28.9%
  23. 23. Proprietary Funds – Statement of Cashflows Cashflows from: Operating Activities Noncapital Financing Activities Capital & Related Financing Activities Investing Activities Net increase (decrease) in Cash & Cash Equiv.
  24. 24. Proprietary Funds – Statement of Cashflows Golf Course Cashflows from: Operating Activities $827,625 Noncapital Financing Activities $3,085 Capital & Related Financing Activities ($831,545) Investing Activities $12,540 Net increase (decrease) in Cash & Cash Equiv. $11,705
  25. 25. Fiduciary Fund Statements <ul><li>Statement of Fiduciary Net Assets </li></ul><ul><ul><li>No option of sustituting Balance Sheet </li></ul></ul><ul><ul><li>No total column – not tied to government-wide reporting </li></ul></ul><ul><ul><li>Only accounting liabilities reported (no unfunded actuarial accrued liability) </li></ul></ul><ul><li>Statement of Changes in Fiduciary Net Assets </li></ul><ul><ul><li>Changes classified as additiona or deductions </li></ul></ul>
  26. 26. Notes to Financial Statements
  27. 27. Other Information <ul><li>Required Supplementary Information (other than MD&A) </li></ul><ul><li>Information on nonmajor individual funds </li></ul><ul><li>Statistical Section </li></ul><ul><ul><li>Financial trends </li></ul></ul><ul><ul><li>Revenue capacity </li></ul></ul><ul><ul><li>Debt capacity </li></ul></ul><ul><ul><li>Demographic information </li></ul></ul><ul><ul><li>Bond disclosures </li></ul></ul><ul><ul><li>Other </li></ul></ul>

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