Review CAFR for Washington State (only answer question 4)

Group Project – Fall 2014 Obtain a copy of a recent (2012 or later) Comprehensive Annual Financial Report (CAFR) for a state or a large city or county. This can be done by doing a Google search for Comprehensive Annual Financial Report or by going to the government website of the state, city, or county you are interested in. You can also try the GASB website at www.gasb.org. Each group must select a different state, city or county. You must let me know what state, city or county you have selected on October 7, 2014. If more than one group selects the same state, city or county, all the groups selecting the same CAFR will need to change their selection. Each group will turn in a paper that contains answers to questions about the CAFR that you have selected. The paper is due in-class on December 4, 2014. Each group must turn in two copies of the group project. A printed copy should be given to me in class. In addition, each group should email the electronic assignment to me by the deadline. Questions you must answer: 1. Provide a brief description of the chosen state, city or county. (Max. ½ page) (5 points) 2. Review the letter of transmittal and the MD&A. (Max 1 page) a. What information is provided regarding the general economic condition of the governmental entity? (10 points) b. What other important issues are discussed that would be useful for evaluating the financial condition of the governmental entity? (10 points) 3. Review the financial statements. (Max 2.5 pages) a. What are the major funds? What type of funds are they and what is their purpose? (15 points) b. What is the largest revenue and expenditure/expense of these major funds? (10 points) c. Did the fund balance or net assets of these major funds increase or decrease significantly during the period? If it did, is it possible to determine from the CAFR what the primary cause of this increase or decrease was? (10 points) 4. Review the reconciliation between reconciliation between the governmental fund balances and the governmental-type activities net assets. This might be on the governmental fund balance sheet and statement of revenue etc., or in a separate schedule in the basic financial statements. (Max. 1 page) a. List two major differences for each statement and the direction of the adjustment. Be sure to clearly identify whether the adjustments are being made to governmental fund balance to arrive at governmental type net assets or vice-versa. (10 points) 5. Review the statistical section. (Max. 1 page) a. What additional information is provided in the statistical section beyond what is provided in the financial statements? (5 points) b. How would the statistical information be useful in evaluating the financial condition of the governmental entity? (5 points)