PDT2022

1. WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor
©2022
CliftonLarsonAllen
LLP
Presented by Laura Beltran-Schmitz for the AGA PDT 2022
A Walkthrough of Government
Financial Statements

2. ©2022 CliftonLarsonAllen LLP
The information herein has been provided by
CliftonLarsonAllen LLP for general information
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concerning any specific matters.
CliftonLarsonAllen LLP is not licensed to
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or other factors that could affect the
information contained herein.
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3. ©2022
CliftonLarsonAllen
LLP
Understanding the MD&A
Management’s Discussion & Analysis (MDA)
o Required Supplementary Information (RSI)
o Precedes the Basic Financial Statements
o Designed to introduce the basic financial statements
o A brief discussion of the financial statements
o Condensed financial information derived from government-
wide financial statements comparing the current year to the
prior year
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4. ©2022
CliftonLarsonAllen
LLP
Fund Types
• What is a fund?
• Governmental Funds
o General, Special Revenue,
Capital Projects, Debt
Service, Permanent
• Proprietary Funds
• Fiduciary Funds
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5. ©2022
CliftonLarsonAllen
LLP
Gov’t Fund Types, as defined by GASB 54
• General Fund - used to account for and report all financial resources not
accounted for and reported in another fund
• Special Revenue Funds - used to account for and report the proceeds of
specific revenue sources that are restricted or committed to expenditure
for specified purposes other than debt service or capital projects
o The restricted or committed proceeds of specific revenue sources
should be expected to continue to comprise a substantial portion
of the inflows reported in the fund
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6. ©2022
CliftonLarsonAllen
LLP
Gov’t Fund Types, as defined by GASB 54
• Capital Projects Funds - used to account for and report financial
resources that are restricted, committed, or assigned to expenditure for
capital outlays, including the acquisition or construction of capital
facilities and other capital assets
• Debt Service Funds - used to account for and report financial resources
that are restricted, committed, or assigned to expenditure for principal
and interest.
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7. ©2022
CliftonLarsonAllen
LLP
Gov’t Fund Types, as defined by GASB 54
• Permanent Funds- used to account for and
report resources that are restricted to the
extent that only earnings, and not principal, may
be used for purposes that support the reporting
government's programs-that is, for the benefit
of the government or its citizenry.
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8. ©2022
CliftonLarsonAllen
LLP
Proprietary and Internal Service Funds
• Proprietary
o Business type activities
o Enterprise funds
o NMCD – Corrections Industries
• Internal Service
o Account for financing of goods or services provided by one dept. of
a gov’t unit to other depts. within same gov’t unit
o Cost reimbursement basis
o Self insurance
o Goal to break even (or as close as possible)
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9. ©2022
CliftonLarsonAllen
LLP
Fiduciary Funds
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• Pension (and other employee benefit) trust funds are used to report fiduciary activities for the
following:
a. Pension plans and OPEB plans that are administered through trusts that meet the
criteria in paragraph 3 of Statement 67 or paragraph 3 of Statement 74,
respectively
b. Other employee benefit plans for which (1) resources are held in a trust that meets the
criteria in paragraph 11c(1) and (2) contributions to the trust and earnings on those
contributions are irrevocable.
• Investment trust funds are used to report fiduciary activities from the external portion of
investment pools and individual investment accounts 6 that are held in a trust that meets the
criteria in paragraph 11c(1).
• Private-purpose trust funds are used to report all fiduciary activities that (a) are not required to
be reported in pension (and other employee benefit) trust funds or investment trust funds and (b)
are held in a trust that meets the criteria in paragraph 11c(1).
• Custodial funds are used to report fiduciary activities that are not required to be reported in
pension (and other employee benefit) trust funds, investment trust funds, or private-purpose
trust funds. The external portion of investment pools that are not held in a trust that meets the
criteria in paragraph 11c(1) should be reported in a separate external investment pool
fund column, under the custodial funds classification.

10. ©2022
CliftonLarsonAllen
LLP
Fund Types
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Governmental Funds Proprietary Funds Fiduciary Funds
Basis of accounting Modified Accrual Accrual Accrual
Long-term liabilities No Yes Yes
Capital Assets No Yes Yes
Financial Statements Balance sheet
Statement of revenues,
expenditures, and changes in
fund balances
Statement of net position
Statement of revenues,
expenses, and changes in fund
net position
Statement of cash flows
Statement of fiduciary net
position
Statement of changes in
fiduciary net position

11. ©2022
CliftonLarsonAllen
LLP
Fund Financial Statements
• Where do the Fund Financial Statements Appear?
 If the funds are major they appear as part of the basic financial statements,
before the notes.
 Non major funds appear in the supplementary section – Combining
Statements – Individual Fund Statements, after the notes.
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12. ©2022
CliftonLarsonAllen
LLP
Fund Financial Statements –
Major or Nonmajor
 General Fund is always major
 Management may designate a fund as major
 Funds that meet the following criteria must
also be major:
 10% & 5% test
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13. ©2022
CliftonLarsonAllen
LLP
Fund Financial Statements
• For the Governmental Funds
o Statement of Governmental Funds – Balance Sheet
o Reconciliation of the Balance Sheet to the Statement of
Net Position
o Statement of Revenues, Expenditures and Changes in
Fund Balance
o Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of the
Governmental Funds to the Statement of Activity
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14. ©2022
CliftonLarsonAllen
LLP
Fund Financial Statements
• Governmental Funds, cont’d:
o Statement of Revenues, Expenditures and Changes in
Fund Balance Budget and Actual -General Fund
o Statement of Revenues, Expenditures and Changes in
Fund Balance Budget and Actual –Major Special Revenue
Fund
• Proprietary Funds
o Statement of Net Position
o Statement of Revenues Expenses and Changes in Fund
Net Position
o Statement of Cash Flows
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15. ©2022
CliftonLarsonAllen
LLP
Gov’t – Wide Financial Statements
 Include all governmental and business-type
activities, but not fiduciary activities
 Statement of Net Position
 Statement of Activities
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16. ©2022
CliftonLarsonAllen
LLP
Gov’t – Wide Financial Statements
Fund level to Gov’t Wide level
• Modified Accrual to Full accrual
• Reconciliation of the Balance Sheet to the Statement
of Net Position – Governmental Funds
• Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
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17. ©2022
CliftonLarsonAllen
LLP
Financial Statements
• Notes to the Financial statements
• Budgetary comparisons
• Schedule of Expenditures of Federal Awards
(SEFA)
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18. ©2022
CliftonLarsonAllen
LLP
Types of reports
• Independent Auditors’
Report (FYE 22
updates - SAS 134)
• YellowBook Report
(Governmental
Auditing Standards)
• Uniform Guidance
Report (SEFA/Single
Audit)
Auditors’ Reports
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19. CLAconnect.com
©2021 CliftonLarsonAllen LLP
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor
WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING
Laura Beltran-Schmitz, CPA,
CFE, CGFM, CICA
Signing Director
Laura.beltran-
schmitz@claconnect.com
505-222-3526