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A walkthrough of gov't fs (aga pdt april 2018)

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2018 abq aga

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A walkthrough of gov't fs (aga pdt april 2018)

  1. 1. WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor ©2018CliftonLarsonAllenLLP Presented by Laura Beltran-Schmitz for the AGA PDT 2018 A Walkthrough of Government Financial Statements
  2. 2. ©2018CliftonLarsonAllenLLP Understanding the MD&A • Management’s Discussion & Analysis (MDA) – Required Supplementary Information (RSI) – Precedes the Basic Financial Statements – Designed to introduce the basic financial statements – A brief discussion of the financial statements – Condensed financial information derived from government-wide financial statements comparing the current year to the prior year 2
  3. 3. ©2018CliftonLarsonAllenLLP Fund Types • What is a fund? • Governmental Funds – General, Special Revenue, Capital Projects, Debt Service, Permanent • Proprietary Funds • Fiduciary Funds 3
  4. 4. ©2018CliftonLarsonAllenLLP 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 – 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 4
  5. 5. ©2018CliftonLarsonAllenLLP 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. 5
  6. 6. ©2018CliftonLarsonAllenLLP 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. 6
  7. 7. ©2018CliftonLarsonAllenLLP Proprietary and Internal Service Funds • Proprietary – Business type activities – Enterprise funds – NMCD – Corrections Industries – GSD – Workers’ Comp, State Transportation Pool, etc.. • Internal Service – Account for financing of goods or services provided by one dept. of a gov’t unit to other depts. within same gov’t unit – Cost reimbursement basis – Self insurance – Goal to break even (or as close as possible) 7
  8. 8. ©2018CliftonLarsonAllenLLP Fiduciary Funds • Pension (and other employee benefit) trust funds • Investment trust funds • Private-purpose trust funds • Agency funds 8
  9. 9. ©2018CliftonLarsonAllenLLP Fund Types 9 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
  10. 10. ©2018CliftonLarsonAllenLLP 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. 10
  11. 11. ©2018CliftonLarsonAllenLLP Fund Financial Statements  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 11
  12. 12. ©2018CliftonLarsonAllenLLP Fund Financial Statements • For the Governmental Funds – Statement of Governmental Funds – Balance Sheet – Reconciliation of the Balance Sheet to the Statement of Net Position – Statement of Revenues, Expenditures and Changes in Fund Balance – Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activity 12
  13. 13. ©2018CliftonLarsonAllenLLP Fund Financial Statements ◊ Governmental Funds, cont’d: • Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual -General Fund • Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual –Major Special Revenue Fund 13
  14. 14. ©2018CliftonLarsonAllenLLP Fund Financial Statements • Proprietary Funds – Statement of Net Position – Statement of Revenues Expenses and Changes in Fund Net Position – Statement of Cash Flows 14
  15. 15. ©2018CliftonLarsonAllenLLP Gov’t – Wide Financial Statements  Include all governmental and business-type activities, but not fiduciary activities  Statement of Net Position  Statement of Activities 15
  16. 16. ©2018CliftonLarsonAllenLLP 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 16
  17. 17. ©2018CliftonLarsonAllenLLP Financial Statements • Notes to the Financial statements • Budgetary comparisons • Schedule of Expenditures of Federal Awards (SEFA) 17
  18. 18. ©2018CliftonLarsonAllenLLP Auditors’ Reports • Types of reports – Independent Auditors’ Report – YellowBook Report (Governmental Auditing Standards) – Uniform Guidance Report (SEFA/Single Audit) 18
  19. 19. twitter.com/CLAconnectfacebook.com/ cliftonlarsonallen linkedin.com/company/ cliftonlarsonallen ©2018CliftonLarsonAllenLLP CLAconnect.com youtube.com/CliftonLarsonAllen Laura Beltran-Schmitz, CPA, CFE, CGFM, CICA Assurance Director Laura.beltran-schmitz@claconnect.com 505-222-3526

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