Form and Content of the Comprehensive Annual Financial Report (CAFR) (F10:M3)

Question 1

the CAFR is divided into 3 sections, what are those sections?

Answer 1

introductory (letter of transmittal, organizational chart, list of principal officers)

financial (MD&A, basic financial statements, required supplementary information)

statistical (10 years of data)

*only the financial section is audited

Question 2

if a component unit is not a separate legal entity, is the unit’s annual financial results presented discretely or blended with the primary government?

Answer 2

blended

Question 3

what is the basic criterion used to determine the reporting entity for a governmental unit?

Answer 3

financial accountability

Question 4

is fiduciary activity included in the government-wide statement of net position?

Answer 4

NO

Question 5

according to GASB 34, what are “basic financial statements”?

Answer 5

government-wide FS, fund FS, and notes to the FS

Question 6

what are the only two acceptable methods of presenting component units?

Answer 6

discrete and blended

Question 7

how are enterprise funds and internal service funds classified in the government-wide FS?

Answer 7

enterprise: business type activities

internal service: generally included in governmental type activities

Question 8

what are the government-wide financial statements?

Answer 8

statement of net position

statement of activities

• NO statement of CF
• economic resources measurement focus = accrual basis of accounting

Question 9

how do you know if a special purpose local government (e.g., school district) is a primary government? *SELF

Answer 9

If all of the following are met:

Separately Elected governing body

Legally separate

Fiscally independent of other state and local governments

*SELF

Question 10

when will a component unit be blended?

Answer 10

board of the component is SUBSTANTIVELY the same as that of the primary government
OR
component services the primary government exclusively
OR
component is not a separate legal entity

*otherwise it is presented discretely (default)

Question 11

government-wide FS focus on ___ accountability

Fund FS focus on ___ accountability

Answer 11

operational (LT efficient and effective use of resources)

fiscal (ST compliance and current year performance)