Proprietary Funds FS

Question 1

The required statements are

Answer 1

Statement of net position
Statement of revenues expenses and changes in net position
Statement of cash flows

Question 2

Organized in order by

Answer 2

Operating revenues 
Operating expenses 
Operating income or loss
Non-operating revenues & expenses
Ends with change in net position

Major fund reporting does not apply to internal service or enterprise funds

Equipment purchased to be used within a proprietary fund will be depreciated over its useful life just like a for-profit entity

Question 3

Fiduciary required FS

Answer 3

Statement of fiduciary net positions
   Assets
   \+Deferred outflows of resources
   Less: Liabilities 
   Less: Deferred inflow of resources
   Ends with: Net Position

Statement of changes in fiduciary net position
Additions
Less: Deductions
Ends with: Net increase or decrease in fiduciary net
position

Fiduciary fund statements include a separate column for each fund type. Remember that fiduciary funds are NEVER major funds.

Question 4

Notes to financial statements

Answer 4

The notes to governmental financial statements are similar to notes to for-profit financial statements in that disclosures are required for items that require disclosures or more additional explanation.

The main segment is the summary of significant accounting policies, which would include a government’s policies for things like capital assets, pension plans, debt service schedule, long term liabilities, major projects, etc.

Question 5

Management’s discussion and analysis

Answer 5

The MD&A in the CAFR discusses the current year’s results compared to prior years. It provides and explanation of the included financial statements and how the different statements relate to each other.

It will also discuss overall financial position, reasons for any major changes in fund balances, deviations from the budget, etc.

Question 6

Budgetary comparison reporting

Answer 6

Every CAFR should include a budget to actual comparison. Adherence to the budget is extremely important to government stakeholders, and key decisions are driven by the budget.

Question 7

Required Supplementary information is required such as:

Answer 7

Budget comparison: the initial budget, how/if it changed, actual results compared to budget
Disclosures about infrastructure assets using modified approach
Other statistical data or schedules to provide additional info on significant elements of the government