Form and content of comprehensive report

Question 1

what are the two types of governmental reporting accountability?

Answer 1

• Operational accountability: the focus of government-wide financial statements is to report that it met its operating objectives efficiently and effectively, using all resources available for that purpose
• Fiscal accountability: the focus of fund financial statements is to demonstrate that the government entity’s actions in the current period have complied with public decisions concerning the raising and spending of public funds in short term

Question 2

what is integrated approach?

Answer 2

it is the joint presentation of government-wide and fund financial statements and appropriate reconciliation

Question 3

what measurement and basis of accounting used in government-wide financial statements?

Answer 3

• measurement: economic resources
• basis accounting: accrual

Question 4

what are measurement and basis of accounting used in governmental fund FS?

Answer 4

• measurement: current financial resources
• basis accounting: modified accrual

Question 5

what are the basic requirements of financial statements in reporting?

Answer 5

• Government-wide FS
• Fund FS
• Notes to the FS

Question 6

what is the order of a basic FS reporting?

Answer 6

1. Management’s discussion and analysis (MD&A)
2. Basic FS (government-wide and fund FS) + notes
3. Required supplementary information (other than MD&A)

Question 7

what are the 3 standard sections of a governmental annual comprehensive financial report?

Answer 7

• Introductory (unaudited): t-letter, org chart, list officers
• Financial (audited): MD&A, basic of FS+notes, & required supplement info
• Statistical (not part of the basic FS): 10 years of financial and non-financial data

Question 8

what fund activities are excluded from government-wide FS?

Answer 8

Fiduciary activities because its resources cannot used to support the government’s programs and other services

Question 9

what are the two types of component unit?

Answer 9

• Blended presentation: substantially the same or serves the primary government exclusively
• Discrete (separate) presentation: most common

Question 10

how to determine if a reporting unit has blended or discrete status?

Answer 10

Discrete if it stands alone by itSELF
- Separately
- Elected government body
- Legally separate unit
- Financially independent status