[removed] 1 Governmental and Not-for-Profit Accounting Fall 2016 Project (100 points) Obtain a copy of Comprehensive A nnual Financial Report (CAFR) o nline, either from Blackboard or on the website of any municipality of your selection. Review t he CAFR you select and answer the following questions. Your answers should be concise but to the point. This is an individual project . You can collaborate with others but you should submit project answers individually. If you collaborat e with your classmate(s), you s hould indicate the name of persons you collaborate with in the project. A word about answering the questio ns below: Don’t just answer “ yes” or “no”; try to elaborate by combining the knowledge you learnt from the class. This certai nly will help you e arn better grade from this project. You are required to type the ans wers. Present your answers in a nice and neat format; just think about how you would make it easier to read. A portion of your grade will be based on the p resentation of project. Part I Overview of report 1. What are three main sections of the report? 2. Review the introductory secti on of the CAFR. What are key issu es addressed in the letter of transmittal? 3. Review the financial section. a. Does the report provide a r econciliation betw een total governme ntal net position per the government-wide statement of net position and total governmenta l fund balances per the governmental funds balance sheet? If so, what are the main rec onciling items? b. What are the major governmental funds maintained by the entity? c. Does the report include “require d supplementary information?” If so, what are the main areas addressed? d. Does the report include “combin ing statements?” If so, what is the nature of these statements? 4. Review the statistical section. a. What is the population of th e entity being reported on? b. Who is the entity’s major employer? c. What is the amount of net debt per capita? The city’s legal de bt margin? The amount of direct and overlapping debt? 5. Component units a. Does the notes to the financial s tatements indicate the compone nt units that are included within the reporting entity? D o they indicate any units that a re not included? Do they explain why these units are included or excluded? b. How are the component units presented in the government-wide fi nancial statements? In the fund statements? 2 Part II Budget 1. In which section of the CAFR are the budget-to-actual compariso ns of the major funds? a. Which accounting basis did the City follow to prepare its annua l operating budget? b. Are the actual amounts on a GAAP or a budgetary basis? Do the statements include a reconciliation of any difference s between GAAP and budgetary am ounts? If so, what are the largest reconciled items? c. Are the reported variances base d on the original budget or the year-end amended budget? 2. Does the CAFR include budget-to- actual comparisons of nonmajor funds? If so, in what sections? 3. Do.

1. [removed]
1
Governmental and Not-for-Profit Accounting
Fall 2016
Project (100 points)
Obtain a copy of Comprehensive A
nnual Financial Report (CAFR) o
nline, either from Blackboard or
on the website of any municipality of your selection. Review t
he CAFR you select and answer the
following questions. Your answers
should be concise but to the
point.

2. This is an individual project
. You can collaborate with others
but you should submit project answers
individually. If you collaborat
e with your classmate(s), you s
hould indicate the name of persons you
collaborate with in the project.
A word about answering the questio
ns below: Don’t just answer “
yes” or “no”; try to elaborate by
combining the knowledge you learnt
from the class. This certai
nly will help you e
arn better grade
from this project.
You are required to type the ans
wers. Present your answers in
a nice and neat format; just think about
how you would make it easier to
read. A portion of your grade
will be based on the p
resentation of
project.
Part I Overview of report
1.
What are three main sections of the report?
2.
Review the introductory secti
on of the CAFR. What are key issu
es addressed in the letter of
transmittal?
3.
Review the financial section.
a.
Does the report provide a r
econciliation betw

3. een total governme
ntal net position per the
government-wide statement of net position and total
governmenta
l fund balances per the
governmental funds balance sheet? If so, what are the main rec
onciling items?
b.
What are the major governmental
funds maintained by the entity?
c.
Does the report include “require
d supplementary information?”
If so, what are the main
areas addressed?
d.
Does the report include “combin
ing statements?” If so, what is
the nature of these
statements?
4.
Review the statistical section.
a.
What is the population of th
e entity being reported on?
b.
Who is the entity’s major employer?
c.
What is the amount of net debt per
capita? The city’s legal de
bt margin? The amount of
direct and overlapping debt?
5.
Component units
a.
Does the notes to the financial s

4. tatements indicate the compone
nt units that are included
within the reporting entity? D
o they indicate any units that a
re not included? Do they
explain why these units are
included or excluded?
b.
How are the component units presented in the government-wide
fi
nancial statements? In
the fund statements?
2
Part II Budget
1.
In which section of the CAFR are
the budget-to-actual compariso
ns of the major funds?
a.
Which accounting basis did the City follow to prepare its annua
l operating budget?
b.
Are the actual amounts on a GAAP or a budgetary basis? Do the
statements include a
reconciliation of any difference
s between GAAP and budgetary am
ounts? If so, what are
the largest reconciled items?
c.
Are the reported variances base
d on the original budget or the
year-end amended budget?
2.
Does the CAFR include budget-to-
actual comparisons of nonmajor

5. funds? If so, in what sections?
3.
Does the government encumber goo
ds or services that have been o
rdered but have not yet been
received? How, if at all, are
encumbrances reflected on the go
vernmental fund balance sheet?
How, if at all, are they refl
ected on the government-wide state
ment of net position?
4.
Do encumbrances that remain out
standing at year-end lapse? Tha
t is, do the amounts that will be
expended in the following year, w
hen the goods or services are
received, have to be rebudgeted in
the following year? How can you tell?
Part III Governmental Funds
1.
What are the main sources of the
government’s revenues, includi
ng those from both governmental
and business-type activities?
2.
How are revenues from propert
y taxes accounted for, i.e., as a
single amount, or in multiple
categories? Identify the various
categories and indicate the p
ercentage breakdown. (e.g.,
residential property taxes are
50 percent of the total property
tax revenues.)
3.

6. Does the report discuss the
accounting basis for recognizing re
venues?
4.
Does the government’s government-wide statement of net
position
or governmental-fund balance
sheet report “deferre
d revenue?” (or deferred inflows of resour
ces)? If so, what is the most likely
reason this revenue has been deferred?
5.
What is the government’s property tax rate?
6.
At what percentage of fair market
value is real p
roperty assess
ed?
7.
When are property taxes due? W
hen do interest and penalties be
gin to accrue?
8.
What is the total fund balance in
the general fund? Can this a
mount be appropriated and spent for
any purpose? Explain.
9.
What are the major differences i
n expenditures/expenses (i.e.,
reconciling items) as they are
reported in the governmental f
und and the government-wide state
ments?
10.
On what basis does the government account for its inventories (

7. purchases or consumption)? Does
the City maintain a “fund balanc
e---nonspendable” amount for in
ventories?
11.
To and from which funds or componen
t units have there been gene
ral fund transfers?
12.
What types of other financing s
ources and uses does the governm
ental entity report in the general
fund? What effect do these items have on the net change in fun
d balance for the year?
13.
How many capital projects funds doe
s the government maintain?
How can you tell? Are any of
these major funds? If so, for w
hat purposes are they maintaine
d?
3
14.
How many debt service funds does
the government maintain? How
can you tell? Are any of these
major funds? If so, for what types of obligations are they mai
ntained?
15.
How are the capital projects and d
ebt service funds reported in
the government-wide statement of
net position?
16.
Select one of the more recently established (and larger) capita

8. l project funds (a major fund, if there
is one)
a.
From where did the fund receiv
e most of its resources?
b.
Did the city acquire or construc
t new capital assets using reso
urces of this fund? If so, in
what amount?
c.
Does this fund have any long-term
debts associated with it? If
so, does the government
maintain a debt service fund to account for the resources to se
rvice the debt?
17.
Did the government capitalized infra
structure assets acquired d
uring the year? Did it account for
infrastructure assets using the “
standard” or “modified” approa
ch?
18.
In addition to bonds payable, what
other kinds of long-term deb
t for governmental activities did the
city report in its statement of net position?
19.
Does the government maintain any
permanent funds? If so, for w
hat purposes?
Part IV Proprietary Funds
1.
How are the internal service f
und activities repo

9. rted in the go
vernment-wide statement of net
position? How are they reported i
n the proprietary funds state
ment of net position?
2.
Were any if the government’s ent
erprise funds “profitable” duri
ng the year? If so, what has the
government done with the earnings? Has it transferred them to
the general fund?
3.
Do the financial statements in
clude a statement of cash flows f
or proprietary funds? In how many
categories are the cash flows pr
esented? Is the statement on a
direct or indirect basis?
Part V Fiduciary Funds
1.
Does the government maintain a
ny fiduciary funds? If so, for w
hat purposes?
2.
Does the government contribute
to one or more pension plans? A
re they defined be
nefit or defined
contribution plans? If they are
defined benefit plans, are the
y single employer (maintained by the
government itself) or multiple employer?
3.
Does the government report pens
ion expenses or expenditure? If
so, in which fund or funds?

10. 4.
Does the government report pens
ion liabilities? If so, in whic
h fund or funds?
5.
Does the government maintain a
ny agency funds? How many and fo
r what purposes?