Transcript Slide 1

LEARNING OBJECTIVES
1.
Identify the BASIC FINANCIAL STATEMENTS.
2.
Understand the format/content of GOVERNMENT-WIDE
financial statements and FUND FINANCIAL STATEMENTS.
3.
Understand the concept/content of REQUIRED SUPPLEMENTARY
INFORMATION (RSI).
4.
5.
Identify a government’s MAJOR FUNDS.
Distinguish PROGRAM REVENUES from GENERAL REVENUES.
6.
Understand required information components of MANAGEMENT’S
DISCUSSION and ANALYSIS (MD&A).
7.
Understand the types of notes to the financial statements required for
governments.
NOT REQUIRED: Principle 13 suggests it “should
be prepared..”
SECTIONS OF THE CAFR:
1.
Introductory Section.
2.
Financial Section.
- Independent Auditor’s Report.
- Management Discussion & Analysis (MD&A)
-BASIC FINANCIAL STATEMENTS (BFS)
- REQUIRED SUPPLMENTARY INFORMATION
(RSI other than MDA).
-SUPPLMENTARY INFORMATION.
3.
Statistical Section.
SECTIONS OF THE CAFR:
1.
Introductory Section.
2.
Financial Section.
- Independent Auditor’s Report.
- Management Discussion & Analysis (MD&A)
-BASIC FINANCIAL STATEMENTS (BFS)
- REQUIRED SUPPLMENTARY INFORMATION
(RSI other than MDA).
-SUPPLMENTARY INFORMATION.
3.
Statistical Section.
SECTIONS OF THE CAFR:
1.
Introductory Section.
2.
Financial Section.
- Independent Auditor’s Report.
- Management Discussion & Analysis (MD&A)
-BASIC FINANCIAL STATEMENTS (BFS)
- REQUIRED SUPPLMENTARY INFORMATION
(RSI other than MDA).
-SUPPLMENTARY INFORMATION.
3.
Statistical Section.
Management’s Discussion and Analysis (MD&A).
SECTIONS OF THE CAFR:
1.
Introductory Section.
2.
Financial Section.
- Independent Auditor’s Report.
- Management Discussion & Analysis (MD&A)
-BASIC FINANCIAL STATEMENTS (BFS)
- REQUIRED SUPPLMENTARY INFORMATION
(RSI other than MDA).
-SUPPLMENTARY INFORMATION.
3.
Statistical Section.
GOVERNMENT-WIDE
-Statement of Net Assets (Balance Sheet)
-Statement of Activities (Income Statement)
GOVERNMENT FUND FINANCIAL STATEMENTS
-Balance Sheet
-Reconciliation of the B/S  Governmental Funds to Statement of Net
Assets
-Statement of Revenues, Expenditures and Changes in Fund Balance (Lunch)
-Reconciliation of Statement of Revenues, Expenditures and Changes in
Fund Balances  Governmental Funds to Statement of Activities.
PROPRIETARY FUND FINANCIAL STATEMENTS
-Statement of Net Assets (Balance Sheet)
-Statement of Revenues, Expenses and Changes in Fund Net Assets
- Statement of Cash Flows
FIDUCIARY FUND FINANCIAL STATEMENTS
- Statement of Net Assets
- Statement of Activities
COMPONENT UNIT FINANCIAL STATEMENTS
-Statement of Net Assets (Balance Sheet)
-Statement of Activities (Income Statement)
NOTES TO FINANCIAL STATEMENTS
GOVERNMENT-WIDE
-Statement of Net Assets (Balance Sheet)
-Statement of Activities (Income Statement)
GOVERNMENT FUND FINANCIAL STATEMENTS
-Balance Sheet
-Reconciliation of the B/S  Governmental Funds to Statement of Net
Assets
-Statement of Revenues, Expenditures and Changes in Fund Balance (Lunch)
-Reconciliation of Statement of Revenues, Expenditures and Changes in
Fund Balances  Governmental Funds to Statement of Activities.
PROPRIETARY FUND FINANCIAL STATEMENTS
-Statement of Net Assets (Balance Sheet)
-Statement of Revenues, Expenses and Changes in Fund Net Assets
- Statement of Cash Flows
FIDUCIARY FUND FINANCIAL STATEMENTS
- Statement of Net Assets
- Statement of Activities
Primary government vs. Component Units
Iowa’s Component Units:
Financing the Capital Needs of Iowa's Private Colleges & Universities
Primary government is
GOVERNMENTAL VS BUSINESS TYPE activities
FIDUCIARY FUNDS are NOT INCLUDED in Govt Wide
Net Assets are setup like Enterprise Funds:
Invested in
Capital Assets
net of related
debt
+
Restricted
+
Unrestricted
Governmental Activities column is the sum of
al the governmental funds (after adjusted from
modified accrual to full accrual).
Business-type activities column is the sum of
all enterprise funds. Internal service funds are
blended with either governmental activities or
business-type depending upon who uses them
more. Very little adjustments since they all full
accrual.
ELIMINATIONS!
INTERFUND PAYABLES AND RECEIVABLES BETWEEN
GOVERNMENTAL FUNDS HAVE BEEN ELIMINATED.
LIKEWISE, INTERFUND PAYABLES AND RECEIVABLES
BETWEEN ENTERPRISE FUNDS HAVE BEEN ELIMINATED.
INTERFUND PAYABLES AND RECEIVABLES BETWEEN
GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS STILL
REMAIN.
internal balances
INTERNAL BALANCES IN ASSETS
Governmental Activities
has a receivable
coming from BusinessType activities.
Costs of providing services are provided by FUNCTION.
Revenues are presented as PROGRAM REVENUES
vs. GENERAL REVENUES
There are (3) kinds of PROGRAM REVENUE:
Expenses are listed first and are NEGATIVE.
Revenues are listed next and are POSITIVE.
The right side of the Statement Activities totals out
Program Revenues – Expenses for Governmental vs
Business Type activities.
Then all revenues that aren’t program revenues are
listed as GENERAL REVENUES down on the lower
left side.
They are totaled out on the
right side of the statement.
GOVERNMENT-WIDE
-Statement of Net Assets (Balance Sheet)
-Statement of Activities (Income Statement)
GOVERNMENT FUND FINANCIAL STATEMENTS
-Balance Sheet
-Reconciliation of the B/S  Governmental Funds to Statement of Net
Assets
-Statement of Revenues, Expenditures and Changes in Fund Balance (Lunch)
-Reconciliation of Statement of Revenues, Expenditures and Changes in
Fund Balances  Governmental Funds to Statement of Activities.
PROPRIETARY FUND FINANCIAL STATEMENTS
-Statement of Net Assets (Balance Sheet)
-Statement of Revenues, Expenses and Changes in Fund Net Assets
- Statement of Cash Flows
FIDUCIARY FUND FINANCIAL STATEMENTS
- Statement of Net Assets
- Statement of Activities
All the governmental funds are presented by MAJOR
FUNDS which include:
1.
GENERAL FUND (always only 1)
2.
Any number of other major funds
or non-major funds.
Iowa has:
* Special Revenue Funds
* Capital Projects Funds
* Permanent Funds
Major vs. Non-Major Funds
Column for GENERAL FUND
Column for EACH OTHER
MAJOR FUND (Iowa doesn’t
have any)
One column for ALL OTHER
NON-MAJOR FUNDS
How to decide what is a major fund?
If you pass this test, then the fund MUST be shown as
a major fund (not an option then).
Quantitative MAJOR FUND CRITERIA are:
a. Total assets, liabilities, revenues, or expenditures/
expenses (excluding extraordinary items) of that
individual gov fund (or Enterprise Fund) are at
least 10% of the corresponding total for all funds
of that category or type.
b. The same element that met the 10% criterion in
(a) is at least 5% of the corresponding element
total for all governmental funds and enterprise
funds combined.
adds back the value of capital
assets – accumulated depreciation.
adds in the value of internal service fund
assets because they need to be allocated
to governmental activities and business
activities in the GOVT WIDE. Here they
seem to be going all into Governmental
Activities.
adds back the value of revenues that were not counted
in fund accounting (because they weren’t available)
but can be accrued for GOVT WIDE.
and other necessary adjustments are done
to turn these financials from modified to
full accrual.
This equals the total net assets
for governmental activities in
the GOVT-WIDE balance
sheet.
Presented in same format as lunch statement that we are used to.
Adds back the excess of capital outlay costs
(which were treated as expenditures) as compared
to the depreciation expense which would be the net
charge on the lunch statement.
Adjusts for the difference between the gain amount
on the sale of capital assets (which should be shown)
and the total Other Financing Source that was claimed
in fund accounting.
Removes the Other Financing Source that was created
when Capital Leases and other financing arrangements
were created and does not count such as revenue in
GOVT WIDE.
And all other necessary adjustments to turn
this from modified accrual to full acrrual.
This matches the changes in net assets
from governmental activities on the
GOVERNMENT-WIDE STATEMENT OF
ACTIVITIES.
GOVERNMENT-WIDE
-Statement of Net Assets (Balance Sheet)
-Statement of Activities (Income Statement)
GOVERNMENT FUND FINANCIAL STATEMENTS
-Balance Sheet
-Reconciliation of the B/S  Governmental Funds to Statement of Net
Assets
-Statement of Revenues, Expenditures and Changes in Fund Balance (Lunch)
-Reconciliation of Statement of Revenues, Expenditures and Changes in
Fund Balances  Governmental Funds to Statement of Activities.
PROPRIETARY FUND FINANCIAL STATEMENTS
-Statement of Net Assets (Balance Sheet)
-Statement of Revenues, Expenses and Changes in Fund Net Assets
- Statement of Cash Flows
FIDUCIARY FUND FINANCIAL STATEMENTS
- Statement of Net Assets
- Statement of Activities
Business type activities are broken down into
* University funds
* Unemployment benefits
* Non-major enterprise funds
And then
Internal service.
1.
MAJOR FUND reporting is used for Enterprise
funds but not for Internal Service Funds.
Total is the amount shown for Business
Type activities in GOVERNMENT WIDE
balance sheet
Appears in its familiar format
Total change is same as amount for
Business-Type activities in GOVERNMENT
WIDE.
same setup learned for cash flows
when studying enterprise funds.
GOVERNMENT-WIDE
-Statement of Net Assets (Balance Sheet)
-Statement of Activities (Income Statement)
GOVERNMENT FUND FINANCIAL STATEMENTS
-Balance Sheet
-Reconciliation of the B/S  Governmental Funds to Statement of Net
Assets
-Statement of Revenues, Expenditures and Changes in Fund Balance (Lunch)
-Reconciliation of Statement of Revenues, Expenditures and Changes in
Fund Balances  Governmental Funds to Statement of Activities.
PROPRIETARY FUND FINANCIAL STATEMENTS
-Statement of Net Assets (Balance Sheet)
-Statement of Revenues, Expenses and Changes in Fund Net Assets
- Statement of Cash Flows
FIDUCIARY FUND FINANCIAL STATEMENTS
- Statement of Net Assets
- Statement of Activities
1. Reported by fund
type and NOT
major fund.
No changes
in Agency Fund
It doesn’t have
Net Assets
COMPONENT UNIT FINANCIAL STATEMENTS
-Statement of Net Assets (Balance Sheet)
-Statement of Activities (Income Statement)
NOTES TO FINANCIAL STATEMENTS
The Net Asset
balances of the
three state universities
$991,878,000
$623,476,000
$88,831,000
Change in NA
of (3) state schools
$8,902,600 $8,686,500 $421,400
COMPONENT UNIT FINANCIAL STATEMENTS
-Statement of Net Assets (Balance Sheet)
-Statement of Activities (Income Statement)
NOTES TO FINANCIAL STATEMENTS
-notes should be presented that are
essential to fair presentation of the
Basic Financial Statements.
Finally the Budgetary
Comparison Statement!!!
CAFR also
includes a
Budgetary
Comparison
ReconcilliationBudget to GAAP
RSI FOOTNOTES
are presented next in the CAFR
CAFR also presents a combining
lunch statement.
CAFR presents
a series of
Combining
Statements.
CAFR presents
a series of
Combining
Statements.
CAFR presents
a series of
Combining
Statements.
CAFR presents
a series of
Combining
Statements.
CAFR presents
a series of
Combining
Statements.
Other Pension, Private Purpose Trust
Fund and Agency Fund combining
statements are offered.
Individual income tax returns filed and tax rates
Ratios of outstanding debt by
type