NORTHCENTRAL
UNIVERSITY
ASSIGNMENT
COVER SHEET
Student: Bayo Elizabeth Cary
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CaryBACC7020-8
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ACC7020-8
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Dr. Wendy Achilles
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Accounting for Government
And NonProfit Organizations
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Assignment 1
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Student Comments: There were so many questions to answer
with this assignment, that I found it necessary, to write a little less. I did,
however, answer all of the questions, and, I did, however, present as much
information, as I possibly could. My research paper, is a little longer than 7
pages. I could not figure out, how to attach the C.A.F.R., that I used for the
assignment, to the research paper, as an attachment, so, I am sending it to
you, by email, along with: a second copy of my completed assignment, and a copy
of my direct quotes notes. Thank you again, for the extension until today, to
complete my assignments, with no late submission penalties.
April 5, 2015
Assignment 1: Non Profit Organizations: Comprehensive
Annual Financial Report (C.A.F.R.): City of Gainesville, Florida
Bayo E. Cary
The typical company uses the Financial Accounting
Board Standards (FASB) standards for financial reporting and preparing the
financial statements, governmental accounting is different. In governmental
accounting, Government Accounting Board Standards (GASB) standards must be used
to create what is commonly known as the CAFR. The Comprehensive Annual
Financial Report is an all-encompassing document required by all governmental
entities and requires the use of GASB standard # 34 as that is the basis for
all governmental accounting.
Assignment Directions:
A Comprehensive Annual Financial Report (CAFR) is a
government's complete accounting of "net worth". The CAFR was
established as a public accounting record and is mandatory by Federal
requirement for all local governmental entities.
Obtain a CAFR from a city or county governmental entity; these are usually available as a .pdf download from the entity’s web site. Using the questions in exercises and problems 2-1 in Chapter 2, evaluate the CAFR according to the criteria presented. Attach a copy of the report as an appendix to your paper.
Obtain a CAFR from a city or county governmental entity; these are usually available as a .pdf download from the entity’s web site. Using the questions in exercises and problems 2-1 in Chapter 2, evaluate the CAFR according to the criteria presented. Attach a copy of the report as an appendix to your paper.
Exercises and Problems 2-1 Examine the C.A.F.R.:
Examine the financial statements included in the
financial section and answer the following questions: City of Gainesville,
Gainesville, FL C.A.F.R. 2014
Comprehensive Annual Financial Report Office of
Financial Management
What information is reported, in a Comprehensive
Annual Financial Report (C.A.F.R.)? According to the United States Office of
Financial Management (n.d.), the C.A.F.R. report, is composed, of the following
three sections:
- Introductory section - includes transmittal letter;
- Financial section - includes the independent auditor's report and contains management's; discussion and analysis, government-wide financial statements, fund financial statements; notes to the financial statements, required supplementary information, combining financial statements, and schedules;
- Statistical section - includes additional financial, economic, and demographic information. (para. 1)
A Comprehensive Annual Financial
Report, is an annual report, that government agencies, in the United States,
are required to file, reporting: budget, financial records, investments, assets, and so on. According to: Mr. Burien, Walter J.
Jr. (10-23-06) “A CAFR is similar to the Annual
Financial Report (AFR) that publicly traded corporations are required to
produce each year and give to every share-holder as a requirement of Securities
Exchange Commission (SEC) law (Para. 4).” In other words, a C.A.F.R., is
utilized by the U.S. government, to reinforce: laws, rules, and regulations,
regarding: honest, fair, timely reporting, by U.S. government, of their
financial statements, for investigation, of possible fraudulent acts, and, to
verify, that the statements contained therein, are correct.
I grew up, and, I am presently
living, in Gainesville, FL U.S.A. . I, therefore, choose to analyze, the
C.A.F.R., that was posted online, by the City of Gainesville, FL, for the year
of 2014. The following, are a series of questions, which I was assigned to
answer, and complete, as they pertain, to the information available, in the City
of Gainesville, FL C.A.F.R., for 2014:
·
What
are the titles, of the 2 government-wide statements? The government-wide
financial statements, provided in the City of
Gainesville, FL C.A.F.R., are as such:
1. Statement
of Net Position 1
2. Statement
of Activities 2
I got off to a slow start, when it came to locating
the necessary information required, to answer all of the questions, required
for this assignment-based on the information available, in the City of
Gainesville, FL C.A.F.R. . The C.A.F.R., for the City of Gainesville, FL
U.S.A., from 2014, is a long, and comprehensive report. When I downloaded the
report, from the City of Gainesville, FL website, I it surprised me to see,
that the C.A.F.R., is a PDF file, that is 243 pages long. I had to read, the
entire report, in order to complete, my assignment correctly.
·
Are total assets larger for governmental
activities or business-type activities?
I would presume, that because the City
of Gainesville, FL, operates as a part of the U.S. government, that, financial
activities, relating to the government, would be more numerous, and would bring
in more financial returns for the City of Gainesville, FL, than financial
returns based, on the City of Gainesville, FL, functioning in a business-type capacity. The City
of Gainesville, FL C.A.F.R., from September 30, of 2014, reports, the: net
position-financial earnings, from governmental activities, to be: $ 222,914,58
(MDA-4 p.25). Additionally, the C.A.F.R., states,
that the City of Gainesville, FL-from business activities, in 2014, had a net position
of: $
582,993,145 (MDA-4 p.25). The amount of money, earned by the City of
Gainesville, FL, in 2014-through business-type activities, was over twice the
amount, that the City of Gainesville, FL, earned through governmental activities.
·
Which function or program has the highest
net cost?
The City
of Gainesville, FL, is where I grew up. The City of Gainesville, FL, up until recent
years, has always been, a: small, low key, very safe, college town. However,
recently, my hometown of Gainesville, FL, has needed to rebuild, the
Gainesville Police Department, and to add additional officers, for increased
community safety. Just this past week, I thought I heard a gunshot, outside of
my apartment door. I went outside, and there were several police cars, in the
parking lot. I asked my neighbor, what was going on, and he said, that a swat
team, came to the apartment complex, to make a drug bust. The C.A.F.R., from
the City of Gainesville, FL, from 2014, strongly reflects, the City’s
acknowledgement, that Gainesville, FL, is no longer, a place of: innocence and
boundless joy. Once-many years ago, Gainesville, FL, was rated as one of the
best places, to live in America. However, in 2014, the C.A.F.R., for the City
of Gainesville, FL indicates, that the City’s largest expense, was spent on
public safety: $ 64,021,054 (MDA-4 p.25)
·
What kinds of general revenues are
available to cover the net cost of governmental
activities?
The City of Gainesville, FL C.A.F.R., from September 30 of 2014,
indicates that, the general revenues available to cover net cost of government,
were: property taxes:$ 26,476,044, Other taxes:$ 21,516,536, State revenue
sharing:$ 3,945,358, Investment gain:
6,061,874, Other revenue:$
3,495,904 (MDA-4 p.25). The City of Gainesville, FL, earned a great deal
of money, in 2014, as stated above, by facilitating revenue earning, business
activities, through the City of Gainesville, FL government.
I wonder, if the City of Gainesville, FL, has
ever considered expanding their sponsorship, of business-type programs, in
order to increase their revenues? There are
a number of sociopolitical issues, which face the City of Gainesville, FL, that,
are not adequately being addressed, by organizations, or individuals in the
community, such as: homelessness, and hunger. If the City of Gainesville, FL,
had more revenues, and a higher earning potential, then, the City of Gainesville,
FL, could do more to assist, with the serious pressing issues of: homelessness,
and hunger, that are oppressing our community.
·
Were business-type activities
“profitable”?
The
City of Gainesville, FL C.A.F.R., from 2014, clearly shows, that business-type
activities, are profitable, for the City of Gainesville, FL community. According
to the City of Gainesville, FL C.A.F.R., from 2014, the net total earned, by
the City of Gainesville, FL, from supporting business-type activities, was: $ 582,993,145
(MDA-4 p.25). The combined net total revenues, earned by the City of
Gainesville, FL, after government activity revenues, were added to the business-type
activity revenues earned-in 2014, was: $ 805,907,734 (MDA-4 p.25).
·
Is the excess of revenues over expenses
positive?
In 2014,
the City of Gainesville, FL C.A.F.R. states, that the City of Gainesville, FL,
closed out the fiscal year, in the positive, with revenues being gained, in
excess of losses. The revenues earned, by The City of Gainesville, FL, in 2014,
according to the City of Gainesville, FL C.A.F.R., was a net total, of: $ 805,907,734
(MDA-4 p.25).
·
Are there any component units that are
discreetly presented as a column on the government-wide financial statements?
According to: Kattelus, Reck, & Wilson (2010):
Component units are legally separate organizations,
including organizations such as governmental hospitals, library districts, and
public building authorities, for which the elected officials of the primary
government are financially accountable. In addition, a component unit can be
another organization for which the nature and significance of its relationship
with the primary government, including its ongoing financial support of the
primary government or its other component units, is such that exclusion would
cause the reporting entity’s financial statements to be misleading. (p.39)
There is one
component unit listed discreetly, on the City of Gainesville, FL C.A.F.R.
Statement of Activities, financial statement, for September 30, 2015. The
component unit, is labeled: Gainesville Enterprise Zone Development, however,
it has no financial transaction history. p.33 (2) The component unit, is not
listed at all, on the government-wide, financial statement, for the City of
Gainesville, FL, as per: September 30, 2015. (MDA-4 p.25)
·
What title is given to the fund that
functions as the General Fund?
According to: Kattelus, Reck, &
Wilson (2010):
The governmental funds category includes five types of
funds: the General Fund, special revenue funds, debt service funds, capital
project funds, and permanent funds. Every state and local government has one
and only one General Fund, although it may be called by a different name such
as General Revenue Fund, General Operating Fund, or Current Fund. p.42
In
the City of Gainesville, FL C.A.F.R., from 2014, labeled the General Fund, as,
the General Fund. Below is a cut and paste copy, of the listing of the General
Fund information, that I located, in the City of Gainesville, FL C.A.F.R., of
2014:
Schedule of Revenues and Expenditures - Budget and
Actual - General Fund (81 p.5).
·
Does the report state the basis of
accounting used for General Fund?
As stated, in the City of
Gainesville, FL C.A.F.R., from September 30, of 2014:
All governmental fund budgets are
maintained on the modified accrual basis of accounting except that budgetary
basis expenditures include purchase orders and contracts (encumbrances) issued
for goods or services not received at year-end. The actual results of
operations are presented in accordance with GAAP, and the City does not
recognize encumbrances as expenditures until the period in which the goods or
services are actually received and a liability is incurred. (117 p.82)
·
What
types of assets are included on the governmental funds balance sheet?
Capital
assets, are included in the City of Gainesville, FL C.A.F.R., from 2014. According
to the City of Gainesville, FL C.A.F.R, of 2014:
Capital assets, which
include property, plant, equipment, and infrastructure assets (e.g., roads,
sidewalks, bike paths, and similar items) are reported in the applicable
governmental or business-type activities columns in the government-wide
financial statements. Capital assets, other than those recorded in the Utility
fund, are defined by the City as assets with an initial, individual cost of
more than $2,000 and an estimated useful life in excess of one year. Utility
fund capital assets are defined as assets with an initial, individual cost of
more than $2,500 and a useful life in excess of more than one year. (61 p.27)
Net assets, are listed on the City of Gainesville, FL,
C.A.F.R., as of October 1, 2014-government funds balance sheet-amounting to:
772,348,165, however, the individual asset categories themselves, are not discreetly
listed (MDA-4 p.25). Current, Other assets, and Capital assets, are listed in
separate categories, on the: City of Gainesville, FL, C.A.F.R., from 2014, on
the Net Position, balance sheet (MDA-3 p.24).
Current
assets, for the City of Gainesville, FL, for the year of 2014, are listed in
the C.A.F.R., as: $ 554,924,052, Capital assets for 2014, are listed as:
2,493,514,879, and total assets, are listed as: 3,048,438,931 (MDA-3 p.24).City
of Gainesville, FL assets, are also listed in the C.A.F.R., on a Capital
assets, depreciation chart, however, like the City of Gainesville, FL Net
Position balance sheet, the information is presented, as separate, from the governmental
funds balance sheet (MDA-8 p.29). On the Gainesville, FL Capital assets are on
the balance sheet, in the City of Gainesville, FL C.A.F.R., from 2014-on the
depreciation balance sheet: land, utility P&E, utility capital lease, buildings,
improvements, mach. and equip., infrastructure, and const. and prog., are all
listed, as depreciating Capital assets, with a total net depreciation, for the
year of 2014, of: $ 2,493,514,879 (MDA-8 p.29).
·
Do current and noncurrent liabilities
appear on the balance sheet?
Current and noncurrent liabilities, are
not listed as separate discreet categories, on the Gainesville, FL C.A.F.R.
balance sheet, for the year: 2014 (MDA-4 p.25). The City of Gainesville, FL,
current, and noncurrent liabilities, are, however, listed, on the City of
Gainesville’s Net Position balance sheet (MDA-3 p.24). On the City of
Gainesville, FL, Net Position balance sheet, in the C.A.F.R., of 2014, long-term
liabilities, for the City of Gainesville, FL, are listed as:$ 2,090,204,042.00,
other liabilities, are listed as:$ 168,475,076.00, and total liabilities, are
listed as:$ 2,258,679,118.00 (MDA-3 p.24).
·
Is this reporting consistent with the
basis of accounting being followed?
According
to: BusinessDictionary.com (n.d.), the definition, of modified accrual basis
accounting, is as follows:
Modified Accrual Basis Accounting:
Method
under which revenues are recognized in the period they become available and
measurable, and expenditures are recognized in the period associated liability
is incurred. Most government accounting follows this method. Also called
modified cash basis accounting. (Para.1)
As stated, in the City of Gainesville, FL C.A.F.R.,
from 2014, the City of Gainesville, FL, utilizes: general accepted accounting
principles, and modified accrual basis accounting principles, in all of their
government accounting (117 p.82).
·
List the names of governmental funds other
than the General Fund that are included as major funds in the fund financial
statements.
What is
the definition, of a major fund? How is an account classified, as a major fund?
According to: Kattelus, Reck, & Wilson (2010): Determination of Major Funds:
By its
nature the General Fund of a government is always a major fund. In addition,
any fund that a government considers of significant importance to financial
statement users can be reported as major. Otherwise, GASBS 34 requires that any
fund that meets the following size criteria be designated as major:
a.
Total
assets, liabilities, revenues, or expenditures/expenses of that governmental or
enterprise fund are at least 10 percent of the corresponding element total
(assets, liabilities, and so forth) for all funds of that category or type
(that is, total governmental or total enterprise funds), and (emphasis added);
b. The
same element that met the 10 percent criterion in (a) is at least 5 percent of
the corresponding element total for all governmental and enterprise funds
combined. (p.49)
In the City of Gainesville, FL, of 2014, the C.A.F.R.
lists a great many major funds. I, therefore, choose only to list, the
non-major funds, which are presented, in the City of Gainesville, FL, C.A.F.R.,
from 2014-all of the other funds mentioned, in the C.A.F.R. from 2014, are
presumed to be major funds:
NONMAJOR GOVERNMENT FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the
proceeds of specific revenue sources (other than expendable trusts or for major
capital projects) that are restricted to expenditures for specific purposes
(p.126).
1) The
City maintains the following Special Revenue Funds:
2) Community
Development Block Grant Fund;
3) Urban
Development Action Grant Fund;
4) Home
Grant Fund;
5) Cultural
and Nature Projects Fund;
6) State
Law Enforcement Contraband Forfeiture Fund;
7) Federal
Law Enforcement Contraband Forfeiture Fund;
8) Enforcement
Agencies;
9) Police
Billable Overtime Fund;
10) Community
Redevelopment Agency Fund;
11) American
Recovery & Reinvestment Act (ARRA) Grants Fund;
12) Street,
Sidewalk and Ditch Improvement Fund;
13) Economic
Development Fund;
14) Miscellaneous
Gifts and Grants Fund;
15) Transportation
Concurrency Exception Area Fund;
16) Water
and Wastewater Surcharge Infrastructure Fund;
17) Supportive
Housing Investment Partnership (SHIP) Fund;
18) Small
Business Loan Fund;
19) Miscellaneous
Special Revenue Fund;
20) Tourist
Destination Enhancement Fund;
21) Proportionate
Fair Share Program Fund;
22) Tourist
Product Development Fund-FY12;
23) Tourist
Product Development Fund-FY13;
24) Tourist
Product Development Fund-FY14;
25) Evergreen
Cemetery Trust Fund;
26) School
Crossing Guard Trust Fund;
27) Art
in Public Places Trust Fund;
28) Downtown
Redevelopment Tax Increment Fund;
29) Fifth
Avenue Tax Increment Fund;
30) College
Park Tax Increment Fund;
31) Eastside
Tax Increment Fund. (p. 128)
·
Identify which of the major funds, if
applicable, are special revenue fund, debt service fund, capital project fund,
and permanent fund?
According to: Kattelus,
Reck, & Wilson (2010):
1) Special
Revenue Fund (S.R.F): Funds used to account for revenues from specific taxes or
other earmarked revenue sources that by law are designated to finance
particular functions or activities of government. After the fund is
established, it usually continues year after year until discontinued or revised
by proper legislative body. An example is a motor fuel tax fund used to finance
highway and road construction. (p. 764)
2) Debt
Service Fund (D.S.F.): A fund established to finance and account for the
payment of interest and principle on all tax-supported debt, serial and term,
including that payable from special assessments. (p. 748)
3) Capital
Project Fund (C.P.F.): A fund created to account for all resources to be used
for the construction or acquisition of designated capital assets by a
government except those financed by proprietary or fiduciary funds. (p. 745)
4) Permanent
Fund: Government-type funds used to account for public-purpose trusts for which
the earnings are expendable for a specific purpose, but the principle amount in
not expendable (i.e., an endowment). (p. 760)
There are three different kinds of fund accounts,
present, in the City of Gainesville, FL C.A.F.R., from 2014: “governmental
funds, proprietary funds, and fiduciary funds” (MDA-2 p. 23). The City of
Gainesville, FL, has a: special revenue fund, a debt service fund, and, a
capital projects fund (MDA-7 p. 28). According to the City of Gainesville, FL
C.A.F.R., from 2014:
The special revenue funds
have a total fund balance of $23,285,218, which represents a decrease of
$941,218 from last year’s balance. The debt service funds have a total fund
balance of $607,176. The net decrease in
fund balance for the current year for these funds was $153,197. Fund balance in the capital projects funds
decreased by $11,372,633 to end the fiscal year at $30,961,465. This decrease is primarily due to the planned
expenditures of bond funds on capital projects. (MDA-7 p. 28)
·
List the names of the fiduciary funds
included in the fund financial statements.
The City
of Gainesville, FL C.A.F.R., from 2014, indicates that the City of Gainesville,
FL, does manage some fiduciary fund accounts, however, the fiduciary fund
accounts, managed by the City of Gainesville, FL, are not listed in the
C.A.F.R. government-wide, financial statements. According to the City of
Gainesville, FL C.A.F.R., from 2014:
Fiduciary funds are not
reflected in the government-wide financial statements because the resources of
those funds are not available to support the City’s own programs. The
accounting used for fiduciary funds is much like that used for proprietary
funds. The basic fiduciary fund
financial statements can be found on pages 14-15 of this report. (MDA-3 p.23)
Fiduciary funds, are listed, under the City of
Gainesville, FL Net position statement, of proprietary funds, as, restricted
assets, totaling:$ 52,028,581.00, for 2014 (38 p.7). The specific name, of the
fiduciary fund itself, is not listed (38 p.7).
·
Identify whether each of these is an
agency fund, investment trust fund, pension trust fund, or private-purpose
trust fund?
According to: Kattelus,
Reck, & Wilson (2010):
1) Agency
Fund: Funds consisting of resources received and held by the government as an
agent for others; for example, taxes collected and held by a municipality for a
school district. Note: Sometimes resources held by a government for other
organizations are handled through an agency fund known as a pass-through agency
fund. (p. 742)
2) Investment
Trust Fund: Funds used to account for the assets, liabilities, net assets, and
changes in net assets corresponding to the equity of the external participants.
(p. 755)
3) Pension
Trust Fund: Public Employee Retirement Systems (P.E.R.S.): The organizations
that collect retirement and other employee benefit contributions from
government employers and employees, manage assets, and make payments to
qualified retirants, beneficiaries, and disabled employees. (p. 761)
4) Private
Purpose Trust Fund: Funds that account for contributions received under a trust
agreement in which the investment income of an endowment is intended to benefit
an external individual, organization, or government. (p. 760)
The City of Gainesville, FL C.A.F.R., from 2014, does
not specifically list any fiduciary funds in enough detail, for me to classify
them (38 p.7). The one exception to my previous statement, is the information
available in the City of Gainesville, FL C.A.F.R., from 2014, pertaining to the
City of Gainesville, FL, employee pension plans. Employee pensions, for the
City of Gainesville, FL, are bonded, and information, in regards to their
bonding debt, is available, on a chart displaying, the City of Gainesville’s
bonding debt: Pension obligation bonds $ 7 9,230,933 (MDA-8). Pension funds,
mentioned in the City of Gainesville, FL C.A.F.R., of 2014, are funds
representing investments, administered by the City’s Defined Benefit Pension
Fund Investment Managers (53 p.19). The
pension funds mentioned, in the City of Gainesville, FL C.A.F.R., from 2014, comprise:
$ 557,673,840 of the City’s total fair value of investments, and are exclusive
of the $ 14,614,715 held in cash by the Trustees (53 p.19).
·
Do the financial statements provide
evidence as to what basis of accounting these funds use?
All of the funds, that are accounted for,
by the City of Gainesville, FL, in the 2014 C.A.F.R., are subject to: general
accepted accounting principles, and, modified accrual basis accounting (117 p.82).
The financial statements, that are provided in the City of Gainesville, FL
C.A.F.R., are statements that have been made, in line with: G.A.A.P., and
modified accrual basis accounting principles.
The
City of Gainesville, FL C.A.F.R., from 2014, was subject to review, by an
auditor, to check for inconsistencies, in the financial statements, which were
made in the C.A.F.R. . A letter from the auditor, can be read, at the end of
the 2014, C.A.F.R. . The auditor states, that he did not find any significant
weaknesses, in the City of Gainesville, FL’s internal controls, when he
performed his audit, and he, therefore stated, that he believed, that the
financial accounting, for the City of Gainesville, FL C.A.F.R, of 2014, had
been completed correctly-meaning that, the: G.A.A.P. and modified accrual basis
accounting, had been conducted honestly and accurately:
The government-wide
financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary funds and
pension and OPEB trust funds within the fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of the related cash flows. (52 p.18)
·
What significant accounting policies are
discussed in the first note?
The
following significant accounting policies, were discussed, in the City of
Gainesville, FL C.A.F.R., from 2014-in the notes section:
The accounting policies
of the City of Gainesville, Florida (City) conform to generally accepted
accounting principles (GAAP) as applicable to governmental units. This report, the accounting systems and
classification of accounts conform to standards of the Governmental Accounting
Standards Board (GASB) or, where applicable, the Financial Accounting Standards
Board (FASB). (50 p.16)
Governmental fund
financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are
recognized in the accounting period in which they become measurable and available
to finance expenditures of the fiscal period. (52 p.18)
·
Does the note describe the entities that
are included as component units?
Information, about component units,
that are part of City of Gainesville, FL, are discussed in the C.A.F.R., from
2014, notes section. Below, are the full detailed descriptions, of the component
units, that are provided by the City of Gainesville, FL, in the C.A.F.R., from
2014: Component Unit Information:
Blended Component Unit -
A legally separate entity, the Community Redevelopment Agency (CRA) was created
by ordinance of the City to carry out community redevelopment within the City
of Gainesville under Chapter 163 of the Florida Statutes. The City Commission
sits as the board of this organization and approves its budget. The CRA is
reported as if it were a part of the City because the City Commission is its
governing body and because of the existence of a financial benefit/burden
relationship. The CRA’s operating fund and four Tax Increment District project
funds are reported as separate nonmajor governmental funds. This organization
has a September 30 year-end. Separate
financial statements of the CRA are prepared and are available by contacting
the City at PO Box 490, MS 14, Gainesville, Florida 32627. (50 p.16)
Discretely Presented
Component Unit - The Gainesville Enterprise Zone Development Agency (GEZDA) was
created by ordinance of the City to carry out community redevelopment within
the City of Gainesville under Chapter 163 of the Florida Statutes. The City
Commission appoints the board of this organization and approves its
budget. This organization has a
September 30 year-end. Separate
financial statements of this agency are not prepared. (50 p.16)
The following entities
are not included in the accompanying financial statements:
Gainesville Housing
Authority (GHA) GHA is a public housing
authority (dependent special district) created under Section 421.04 of the
Florida Statutes. The GHA is considered a related organization because the City
is responsible for appointing a voting majority of GHA’s board members. The City is not financially accountable for
the GHA. (51 p.17)
Gainesville-Alachua
County Regional Airport Authority (GACRAA) GACRAA is an independent special
district created for the purpose of providing airport services for citizens of
Gainesville and Alachua County, Florida and surrounding areas. The GACRAA is considered a related
organization because the City is responsible for appointing a voting majority
of GACRAA’s board members. The City is not financially accountable for the
GACRAA. (51 p.17)
·
Does it list entities that are not
considered component units?
No
entities are reported, in the City of Gainesville, FL C.A.F.R., from 2014, which
are not considered to be, component units (50-51 p.16-17).
·
Are there any notes that disclose (1) any
material violations of legal provisions (2) deficit fund balances or net
assets, or (3) significant commitments or contingencies?
There were no violations of legal
provisions, deficit fund balances, or deficit net assets, or any significant
commitments, or contingencies, mentioned, in the C.A.F.R. notes, in the City of
Gainesville, FL C.A.F.R., from 2014. The closing statements, in the auditor’s
letter, which is included at the end, of the City of Gainesville, FL C.A.F.R.,
from 2014, support the fact, that there were no financial anomalies, discovered
in the report:
Project In our opinion,
the City complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on
its major federal program and each of its major state projects for the year
ended September 30, 2014. (238 p. 190)
Appendix
I
was unable to attach the C.A.F.R. report, which I used, for the homework
assignment, to my completed research paper. I, therefore, will submit, a copy
of the C.A.F.R. report, which I used, to your email address. Thank you.
Works
Cited
Burien, Walter J. Jr. (10-23-06). What Are C.A.F.R.s?
Rense.com. Retrieved from
Daulton, Brent. (n.d.). Why is Modified Accrual Accounting Necessary?
Kattelus, Susan C., Reck, Jacqueline L., & Wilson,
Earl R. (2010). Accounting for
Governmental
& Nonprofit Entities.
Boston: McGraw-Hill Irwin.
Modified Accrual Basis Accounting. (n.d.). In BusinessDictionary.com. Retrieved from
Tenace, Karen. Anatomy
of a CFAR: Comprehensive Annual Financial Report
[Slide Show].
Retrieved from www.gfoaz.org/docs/presos/011108gov_acct101/011108gov
Unknown Author. (2014). Comprehensive Annual Financial Report (C.A.F.R.).
Retrieved from
Unknown Author. (n.d.). Comprehensive Annual Financial
Report: What’s In The C.A.F.R.? In
Unknown Author. (n.d.). GASB STATEMENT 34 IMPLEMENTATION PROCEDURES.
Retrieved from
Wikipedia/Comprehensive Annual Financial Report.
(n.d.). Retrieved April 5, 2015 from the
Wikipedia/Generally Accepted Accounting Principles.
(n.d.). Retrieved April 5, 2015 from the
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