Select a Comprehensive Annual Financial Report (CAFR) from your favorite state or local governmental agency. Be sure to state which state or local governmental agency you are analyzing.
Analyze the CAFR that you selected. Prepare a report in your own words analyzing and explaining the following:
1. Discuss what the main sections of the report are.
2. Discuss the introductory section of the CAFR:
a. Explain whether or not the CAFR has a certificate of achievement of excellent in financial reporting
b. Explain the key issues addressed in the letter of transmittal.
3. Discuss the budget-to-actual comparisons of the major funds.
a. Explain the accounting basis used to prepare its annual operating budget.
b. Explain whether the actual amounts are on a GAAP or a budgetary basis.
4. Discuss the main sources of the government’s revenues, including those from both governmental and business-type activities.
5. Discuss how the government classifies its governmental expenditures. Explain whether the classifications are approximately the same in both the government-wide financial statements and the fund statements.
6. Discuss what types of assets are reported and how they are reported for government-wide financial statements and the fund statements.
7. Discuss what types of liabilities are reported and how they are reported for government-wide financial statements and the fund statements.
8. Discuss whether or not you feel that the CAFR is easy to read and understand.
Discuss what recommendations regarding the CAFR you make to the governmental entity.