Understanding the Comprehensive Annual Financial Report and Key Financial Metrics

 

Requirement:

Comments:

Workpaper Reference:

 

a)   What is the reporting entity?  Are component units included?  If so, identify them and indicate whether discrete or blended presentation is used.

 

 

b)   Summarize three key points highlighted in the Management Discussion and Analysis.

 

 

c)   Summarize three key points from Note 1 – Summary of Significant Accounting Policies.

 

 

d)   Who performed the audit of the financial statements?  What type of audit opinion was received?  If other than unqualified, please provide explanation.

 

 

 

e)   Identify the name of each of the financial statements included in the CAFR.

 

 

f)    Identify the governmental funds that were considered to be ‘major’ in the CAFR.

 

 

g)   Identify if there any fiduciary funds and if so, please name them, and provide their purpose?

 

 

 

 

h)   Identify any internal service or enterprise funds, list them, provide their purpose, and determine if they are self-sustaining? 

 

 

i)     In terms of expenses on the Statement of Activities, please list the largest three programs from an expense perspective and report on the dollar values of those  programs (revenues and the  associated expenses).  Are they self-sustaining?

 

 

j)     In terms of general revenues on the Statement of Activities, please list the largest three types of revenues and the dollar amounts of the associated revenues.  Are the revenues are exchange revenues or non-exchange revenues?

 

 

 

 

k)   In terms of revenues on the Statement of Revenues, Expenditures, and Changes in Fund Balance, please list the largest three types of revenues and the dollar amounts of the associated revenues.   

 

 

l)     What are the three largest asset line items and three largest liability line items reported on the Statement of Net Assets and what are the amounts associated with each?

 

 

m) What are the three largest asset line items and the three largest liability line items reported on the Balance Sheet and what are the associated amounts?

 

 

n)   What are the primary elements of the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets – Governmental Activities Net Assets? 

 

 

o)   Identify the amount of the Net Change in Fund Balance?  Did it increase or reduce fund balance?

 

 

p)   Please prepare horizontal and vertical analysis of the entity’s Balance Sheet and highlight any areas of significant change that might require explanation during an audit.

 

 

q)   Where there any references to any questioned costs for Single Audit grant audit purposes?

 

 

r)    From the statistical section of the CAFR, identify three specific key performance (operating or financial) metrics or statistics used to gauge performance of city services?

 

 

s)    Identify a strength, weakness, threat, and opportunity for the organization that its leaders should consider in the future.