For governments that implement GASB Statement No. 34, the fund financial statements will accompany Management\'s Discussion and Analysis and the government-wide statements. The fund financial statements are used to report additional detailed information about the primary government not found in the government-wide statements and focus on major funds of the primary government. The GWFS are reported using the economic resources measurement focus and the full accrual basis of accounting. GWFS report information about the government as a whole without displaying individual funds or fund types. Distinctions should be made in the GWFS between the primary government and its discretely presented component units, as well as between governmental activities and business-type activities. Fiduciary activities are not included in the GWFS. GWFS include: The Government-wide Financial Statements and Fund Financial Statements have a different measurement focus and basis of accounting. To help the user understand and assess the relationship between fund-based and government-wide financial statements, local governments will be required to present a summary reconciliationthat will show the interplay between the two types of statements. Balance sheet - The basic statement of position for governmental funds reports the difference between assets and liabilities as fund balance. Fund balance is divided into reserved and unreserved components. This is the same statement that is contained in the AUD and ST3. Statement of revenues, expenditures and changes in fund balance-The basic statement of activities for governmental funds reports revenues by source and expenditures by function just as they are currently reported. Since long-term liabilities and capital assets have been incorporated into the government-wide statements the accounts groups will no longer be reported in the statements. A revised supplemental schedule will be included in the AUD and ST3 to continue to accumulate this information. Statement of net assets- The basic statement of position for proprietary funds reports the difference between assets and liabilities as net assets. Net assets are divided into invested in capital assets, restricted and unrestricted.Statement of revenues, expenses and changes in fund net assets- The basic statement of activities for proprietary funds distinguishes operating and non-operating revenues and expenses.Statement of cash flows - This statement will now be required to be prepared on the direct method where operating cash flows will be reported by source. This is not a change for local governments since OSC has already required this method. Solution For governments that implement GASB Statement No. 34, the fund financial statements will accompany Management\'s Discussion and Analysis and the government-wide statements. The fund financial statements are used to report additional detailed information about the primary government not found in the government-wide statement.

1. For governments that implement GASB Statement No. 34, the fund financial statements will
accompany Management's Discussion and Analysis and the government-wide statements. The
fund financial statements are used to report additional detailed information about the primary
government not found in the government-wide statements and focus on major funds of the
primary government.
The GWFS are reported using the economic resources measurement focus and the full accrual
basis of accounting. GWFS report information about the government as a whole without
displaying individual funds or fund types. Distinctions should be made in the GWFS between the
primary government and its discretely presented component units, as well as between
governmental activities and business-type activities. Fiduciary activities are not included in the
GWFS.
GWFS include:
The Government-wide Financial Statements and Fund Financial Statements have a different
measurement focus and basis of accounting. To help the user understand and assess the
relationship between fund-based and government-wide financial statements, local governments
will be required to present a summary reconciliationthat will show the interplay between the two
types of statements.
Balance sheet - The basic statement of position for governmental funds reports the difference
between assets and liabilities as fund balance. Fund balance is divided into reserved and
unreserved components. This is the same statement that is contained in the AUD and ST3.
Statement of revenues, expenditures and changes in fund balance-The basic statement of
activities for governmental funds reports revenues by source and expenditures by function just as
they are currently reported. Since long-term liabilities and capital assets have been incorporated
into the government-wide statements the accounts groups will no longer be reported in the
statements. A revised supplemental schedule will be included in the AUD and ST3 to continue to
accumulate this information. Statement of net assets- The basic statement of position for
proprietary funds reports the difference between assets and liabilities as net assets. Net assets are
divided into invested in capital assets, restricted and unrestricted.Statement of revenues,
expenses and changes in fund net assets- The basic statement of activities for proprietary funds
distinguishes operating and non-operating revenues and expenses.Statement of cash flows - This
statement will now be required to be prepared on the direct method where operating cash flows
will be reported by source. This is not a change for local governments since OSC has already
required this method.
Solution

2. For governments that implement GASB Statement No. 34, the fund financial statements will
accompany Management's Discussion and Analysis and the government-wide statements. The
fund financial statements are used to report additional detailed information about the primary
government not found in the government-wide statements and focus on major funds of the
primary government.
The GWFS are reported using the economic resources measurement focus and the full accrual
basis of accounting. GWFS report information about the government as a whole without
displaying individual funds or fund types. Distinctions should be made in the GWFS between the
primary government and its discretely presented component units, as well as between
governmental activities and business-type activities. Fiduciary activities are not included in the
GWFS.
GWFS include:
The Government-wide Financial Statements and Fund Financial Statements have a different
measurement focus and basis of accounting. To help the user understand and assess the
relationship between fund-based and government-wide financial statements, local governments
will be required to present a summary reconciliationthat will show the interplay between the two
types of statements.
Balance sheet - The basic statement of position for governmental funds reports the difference
between assets and liabilities as fund balance. Fund balance is divided into reserved and
unreserved components. This is the same statement that is contained in the AUD and ST3.
Statement of revenues, expenditures and changes in fund balance-The basic statement of
activities for governmental funds reports revenues by source and expenditures by function just as
they are currently reported. Since long-term liabilities and capital assets have been incorporated
into the government-wide statements the accounts groups will no longer be reported in the
statements. A revised supplemental schedule will be included in the AUD and ST3 to continue to
accumulate this information. Statement of net assets- The basic statement of position for
proprietary funds reports the difference between assets and liabilities as net assets. Net assets are
divided into invested in capital assets, restricted and unrestricted.Statement of revenues,
expenses and changes in fund net assets- The basic statement of activities for proprietary funds
distinguishes operating and non-operating revenues and expenses.Statement of cash flows - This
statement will now be required to be prepared on the direct method where operating cash flows
will be reported by source. This is not a change for local governments since OSC has already
required this method.