Accounting Assignment
2-14 Examine the CAFR. Utilizing the CAFR obtained for Exercise/Problem 1-16, examine the financial statements included in the financial section and answer the following questions.
1. Government-wide Statements. What are the titles of the two government-wide statements? Are total assets larger for governmental activities or business-type activities? Which function or program has the highest net cost? What kinds of general revenues are available to cover the net cost of governmental activities? Were business-type activities "profitable"? That is, is the excess of revenues over expenses positive?
2. Governmental Funds. Does the report state the basis of accounting used for the General Fund? What types of assets and liabilities are included on the governmental funds balance sheet? Is this reporting consistent with the basis of accounting being followed?
3. Identify which of the major funds, if applicable, are special revenue funds, debt service funds, capital projects funds, and permanent funds. Are you able to determine which funds are considered nonmajor? (Hint: look for supplementary information.) What fund balance categories are being used?
4. Proprietary Funds. List the names of the proprietary fund types included in the financial statements. Do the financial statements provide evidence that all proprietary funds use accrual accounting?
5. Fiduciary Funds. List the names of the fiduciary funds included in the fund financial statements. Identify whether each of these is an agency fund, investment trust fund, pension (and other employee benefit) trust fund, or private-purpose trust fund. Do the financial statements provide evidence as to what basis of accounting these funds use?
6. Notes to the Financial Statements. Read the notes to the financial statements, so that you can refer to them as needed in subsequent chapters. What significant accounting policies are discussed in the first note? With regard to revenue recognition, how do the notes define the term available for paying current period obligations?
Readings: Comprehensive Annual Financial Report City of Miami, Florida- Fiscal Year Ended September 30 2015 Prepared By: Jose M. Fernandez, Armando J. Blanco, Erica T. Paschal and Eugene Codner.