Problem -
Select a city of your choice in the United States. Then find that city's comprehensive annual financial report (CAFR) online. After you have reviewed the CAFR, create an analysis of the budget for the city. In your analysis, respond to the following:
- What accounting basis was used to prepare the city's annual operating budget and why was it likely chosen?
- Are the actual numbers in the CAFR on a budget or GAAP basis? Is a reconciliation included in the CAFR that shows variances between planned and actual amounts?If the reconciliation is included, what is the largest variance item? What were the causes for the variance?
- If the reconciliation is not included, why do you think it may have been omitted?
- Based upon your review, does the governmental entity encumber goods or services that are ordered but have not been received? How are encumbrances for the year included in the fund balance sheet and the government-wide statement of net position?
- In general, do encumbrances that are still outstanding at the end of the year lapse and have to be budgeted again? Support your response.
- Based upon your review of the budget and budget to plan results, are the city leaders effective at budgeting? Explain.
- What could have been done better and what steps can be taken by the city to make sure this is achieved?
This should be 3-5 pages including the CAFR and using APA formatting.