Governmental Financial Reporting The Reporting Entity

The Financial Reporting Model Reporting model defines contents of external financial reports – June 1999 = GASB No. 34 Current reporting model based on 1. Accountability Fiscal – Complied with revenue & expenditure decisions of public Operational – How efficiently business-type activities met operating objectives 2. Information useful for decision making

The Financial Reporting Model Minimum reporting requirements for external general purpose financial statements 1. Management’s Discussion & Analysis (MD&A) Classified as Required Supplementary Information 2. Basic Financial Statements (BFS) Covered by audit opinion 3. Required Supplementary Information (RSI) Other than MD&A

Management’s Discussion & Analysis What MD&A IS – Management’s responsibility – Discussion of basic financial statements – Condensed financial information – Analysis of SIGNIFICANT changes Financial position & results of operations Individual fund balances & transactions Capital assets & LTD

Management’s Discussion & Analysis What MD&A IS – Budget analysis of significant variances – Modified approach – Expectations Currently known facts & circumstances – Impact on future

Management’s Discussion & Analysis What MD&A IS NOT – Focused on single year GWS – comparative data permitted MD&A – comparative data required – Condensed financial information – Place to put just about anything – Boilerplate discussion & technical jargon

Government-wide financial statements Fund financial statements Notes to the financial statements Basic Financial Statements

Government-wide financial statements – Statement of Net Assets – page 150 – Statement of Activities – page 152 Fund financial statements – Governmental – page 133 & 135 – Proprietary – page 142, 144, 145 Notes to the financial statements Basic Financial Statements

Comprehensive Annual Financial Report (CAFR) Goes beyond GASB requirements for general purpose external reporting Include non-GAAP information & GAAP based information

CAFR – Introductory Section Table of contents Letter of transmittal Other material deemed appropriate by management

Auditor’s report Required by GAAP – MD&A – Basic Financial Statements (BFS) – Required Supplementary Information (RSI) other than MD&A Budgetary comparison schedule Combining & individual fund financial statements Primary government & component units CAFR – Financial Section

Required by GAAP if prepared – Financial trends information – Revenue capacity information – Debt capacity information – Demographic and economic information – Operating information CAFR – Statistical Section