G OVERNMENTAL FINANCIAL REPORTING Government Reporting Entity and Comprehensive Annual Financial Report

FINANCIAL REPORTING OF GOVERNMENTAL ENTITIES (GASB No. 14) The financial statements of a governmental entity are presented for the reporting entity: The primary government Component units Other organizations that have a significant relationship with the primary government

PRIMARY GOVERNMENT UNIT A primary government is defined in GASB Statement No. 14 as: 1. A state government or a general purpose local government (municipality or county); 2. A special purpose government which meets all of the following criteria: a. It has a separately elected governing body; b. The government functions as a separate legal entity

PRIMARY GOVERNMENT UNIT c. It is fiscally independent of other state and local governments--It must have substantive authority to do all three of the following: i. Determine its own budget without another government's having the authority to approve and modify that budget; ii. Levy taxes or set rates or charges without approval by another government; and iii. Issue bonded debt without approval by another government.

COMPONENT UNIT A component unit is a legally separate organization for which the elected officials of a primary government are financially accountable.

COMPONENT UNIT Financial Accountability A primary government is financially accountable if: 1. The primary government appoints a voting majority of the organization's governing body; and 2. The primary government: Is able to impose its will on that organization--The existence of any ONE of the following conditions clearly indicates the ability to impose its will: i. Ability to remove appointed board members; ii. Ability to modify or approve the budget; iii. Ability to modify or approve rate or fee charges; iv. Ability to veto, overrule, or modify board's decisions; v. Ability to appoint, hire, reassign, or dismiss management; or

COMPONENT UNIT There is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government--A financial benefit or burden relationship exists if any ONE of these conditions exist. The primary government: i. Is legally entitled to or can access the organizations resources; ii. Is legally obligated or has assumed the obligation to finance deficits or provide financial support to the organization; or iii. Is obligated in some manner for the debt of the organization.

COMPONENT UNIT Financial information of a component unit can be reported by: Discrete presentation (i.e., in a separate column), or by Blended presentation (combined in the same columns with financial information of the primary government) Notes to financial statements should describe the reporting entity

OTHER ORGANIZATIONS For which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.

C OMPREHENSIVE A NNUAL F INANCIAL R EPORT (CAFR) Introductory section Financial section Statistical section

M INIMUM R EQUIREMENTS FOR E XTERNAL F INANCIAL R EPORTING : T HE GASB’ S V IEW Management’s Discussion & Analysis Basic Financial Statements Government-wide financial statements Fund financial statements Notes to the financial statements Required supplementary information other than MD&A

CAFR - I NTRODUCTORY S ECTION Title page Contents page Letter of transmittal Other (as desired by management)

CAFR - F INANCIAL S ECTION (GASBS 34) Auditor’s report MD&A Basic Financial Statements Fund-based financial statements Government-wide financial statements Required Supplementary Information RSI (Other than MD&A) Combining and individual fund statements and schedules

M ANAGEMENT ’ S D ISCUSSION AND A NALYSIS (MD&A ) Brief discussion of financial statements Condensed government-wide financial information Analysis of position & results of operations Analysis of individual funds Budget analysis Significant capital assets and LTL events Description of currently known facts

B ASIC F INANCIAL S TATEMENTS Government-wide Financial Statements Statement of Net Assets Statement of Activities Fund Financial Statements Notes to the Financial Statements

F UND F INANCIAL S TATEMENTS Balance Sheet Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds with reconciliation Statement of Net Assets - Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Assets Statement of Changes in Fiduciary Net Assets

T HE G OVERNMENT R EPORTING M ODEL

CAFR - S TATISTICAL S ECTION Presents tables and charts showing social and economic data, financial trends and the fiscal capacity of the government in detail needed by readers who are more than casually interested in the activities of the governmental unit.

G OVERNMENTAL F UNDS — R EQUIRED F INANCIAL S TATEMENTS Balance sheet—governmental funds Statement of revenues, expenditures, and changes in fund balances—governmental funds Reconciliation of total changes in fund balances of governmental funds to total changes in net assets of governmental activities at the government-wide level

P ROPRIETARY F UNDS R EQUIRED F INANCIAL S TATEMENTS Similar to those of for-profit entities Statement of net assets Statement of revenues, expenses, and changes in net assets Statement of cash flows