Question

2–1. Using the Comprehensive Annual Financial Report obtained for Exercise 1–1, answer the following questions: a. Compare the items discussed in the MD&A in your CAFR with the list of items in this chapter. Which topics listed in this chapter are not in your CAFR? Which topics are in your CAFR that are not listed in this chapter? Do you think your CAFR has a reasonably complete discussion?

b. From the MD&A in your report, write a short summary of (1) the financial condition of your government, (2) a comparison of revenues compared with the prior year, (3) a comparison of expenses compared with the prior year, and (4) a comparison of budgeted and actual activity.

c. From the Statement of Net Position, identify the following: (1) unrestricted net position—governmental activities; (2) unrestricted net position— business-type activities; (3) restricted net position by restriction— governmental activities; (4) restricted net position by restriction—business-type activities; and (5) unrestricted and restricted net position—component units (if any).

d. From the Statement of Activities, identify the following: (1) net program expense (or revenue)—governmental activities; (2) net program expense (or revenue)—business-type activities; (3) net program expense (or revenue)—component units; (4) change in net position— governmental activities; (5) change in net position—business-type activities; and (6) change in net position—component units. Does the ending net position in this statement agree with the net position figures in the Statement of Net Position?

e. From the Statement of Revenues, Expenditures, and Changes in Fund Balances for Governmental Funds, identify the names of the major governmental funds. List the net change in fund balance for each major fund.

f. From the governmental fund statements, take one major fund (other than the General Fund) and prove, using the 10 percent and 5 percent criteria described in this chapter, that the fund is required to be reported as a major fund.

g. From the Statement of Revenues, Expenses, and Changes in Fund Net Position, list the major enterprise funds. For each, identify: (1) the operating income, (2) the income (loss) before contributions and transfers, and (3) the change in net position.

Answer 1

Yes this CAFR is a reasonably complete discussion however some additional information were required.

a.   Topics listed in this chapter and are not in this CAFR:

Additional information required.

i.      Required supplementary information for the pension plan consists of schedules related to the net pension liability

ii.      Contributions from employers and the non-employer contributing entity

iii.      The annual money weighted rate of return on pension plan investments.

b.   Topics are in this CAFR that are not listed in this chapter: Apparently no such information was found in this CAFR.

Short Summary of Government operations:

As of August 31, 2015, the date of the most recent actuarial valuation, TRS-Care trust fund's unfunded actuarial accrued liability was $43.2 billion, which is more than the $33.3 billion reported at August 31, 2014. Revenues were $1.94 billion in 2015 and were $1.93 billion in 2014 but the expenses seemed increased to $1.88 billion in 2015 and were $1.79 billion in 2014. Resultantly the operating income has fallen from $139 million to $63 million only from 2014 to 2015.

c.

1.      Unrestricted net position-governmental activities is $ 87,815,276

2.      Unrestricted net position-business-type activities is zero

3.      Restricted net position by restriction- governmental activities is $128,538,706

4.      Restricted net position by restriction-business-type activities is zero

5.      Unrestricted and restricted net position-component units is zero

d. For these see the financial statements Exhibit 5.

e. For these see the financial statements Exhibit 4.

f. For these see the financial statements schedule 1.

g. For these see exhibit 4 and schedule 1 above.