3A - Format and Content of the Financial Section of the Annual Comprehensive Financial Report Flashcards
The annual comprehensive financial report (ACFR)
- Management’s discussion and analysis
- Basic financial statements:
- Government-wide financial statements
- Fund financial statements
- Notes to the financial statements
- Required supplementary information (other than MD&A)
Major Funds
Are those that are consider significant in terms of their financial size
Qualitative Criteria:
Total assets, liabilities, revenues or expenditures of the individual govermental or enterprise fund are al least 10% of the corresponding total assets, liabilities, revenues or expenditures for all funds of that category.
For Govermental and enterprise funds, is the same but at least 5% of the corresponding total for all govermental and enterprise funds combined
Major Funds. Qualitative Criteria
Even if a fund does not meet the quantitative thresholds, it can still be classified as a major fund if the government’s management believes that its significance warrants separate reporting based on its importance to financial statement users
Annual Comprehensive Financial Report (ACFR) includes:
An introductory section, financial section, and statistical section. The financial section includes the financial statements, auditor’s report, and required supplementary information for the financial statements prepared for the required fiscal years. The statistical section includes financial, economic, and demographic information and their associated trends over the fiscal years presented in the financial statements and data not confined to the fiscal-year approach required of the financial statements.
Nonmajor Funds on a prorated basis
If the state low requires, a prior-year comparative data for any individual fund receiving a prorated share of state tax collections would have to be presented
Determining the actual historical cost
If determining the actual historical cost of general infrastructure assets is not practical because of inadequate records, public institutions reporting as special-purpose governments should report the ESTIMATED HISTORICAL cost for major general infrastructure assets.
Combining Fund statement
Is part of the comprehensive financial report but not part o the basic financial statement.
The basic financial statements required of state and local governments report fund financial statements for governmental and proprietary funds, focusing on major funds with nonmajor fund information aggregated or combined.
Blending Presentation
a) Primary Government and Component Unit have substantively the same goberning body if a voting majority of the PG governing body serves and constitutes a voting majority of the CU’s governing body
b) Operational responsibility means that the PG manages the CU essentially the same way it does its departments and agencies.
Discrete Presentation
Other CUs, including all affiliated tax-exempt entities whose resources are entirely for the benefit of the PG, are discretely presented.
If the governing body of the component unit is not “substantially the same”, the blending method is not required. Discrete presentation should be used unless the financial activities of the two entities are so intertwined as to make them substantially the same entity.
Revenues Entity-wide level
+ Receipts
+ Ending receivables
- Ending allawance
- beginning receivables
+ Beginning allawance
Revenues Fund level
+ Beginning receivables
- Beginning allowance
- Ending receivables
- Deferred revenues
+ Receipts
+ Available at YE
