Question

Acct 510 - MN CAFR Independent Assignment Page 1

Chapter 18 Lab => Government Accounting - MN Comprehensive Annual

Financial Report (CAFR)

Note: The MN CAFR is available online in the state of MN website (www.finance.state.mn.us).

NOTE: If you are not sure if you are interpreting a question correctly…just note your assumption.

Introduction Section

Transmittal Letter

1. What basis of accounting is this system maintained?

State Principal Officials

1. List the following:

a. Governor –

b. Attorney General –

c. State Auditor –

d. Chief Justice of the MN Supreme Court -

Financial Section

Management Discussion and Analysis (MD&A)

1. List the government wide financial statements.

2. List the three types of government activities broken down in the government wide financial

statements.

3. What type of activity would Metropolitan State University considered?

4. List the state’s top three component units.

5. The state’s funds are separated into three types of funds;

a. List the three fund types.

b. What fund is Metropolitan State University a part?

6. Explain in your own words the difference between Budgetary Basis vs. GAAP?

Basic Financial Statements

1. What % of Total Assets do Cash and Cash Equivalents (unrestricted) represent?

2. Why would the state of MN carry such a high % of cash and cash equivalents?

3. What is the amount of General Obligation Bonds Payable?

Acct 510 - MN CAFR Independent Assignment Page 2

a. Current

b. Noncurrent

c. Total

4. In descending order, list the five largest “General Revenue” sources and the dollar amounts

(exclude “Other Taxes” from your list). Hint: All are found in the tax section.

5. What is the difference between Program Revenues and General Revenues?

6. List the three largest net expenditures for the state; in the following format.

Description Expense Revenue Total Net Expenditure

1st

2nd

3rd

7. Compare Net Assets of Governmental Activities to the Total Fund Balance for Governmental

Funds.

a. What is the total difference?

b. List the largest asset and the largest liability driving this difference. Why do these

differences exist? Be specific (provide examples) in your explanation for the

difference.

c. Explain in your own words why there is a $ revenue difference.

8. Compare the Change in Net Assets of Governmental Activities to the Net Change in Fund

Balances for Governmental Funds.

a. What is the total difference?

b. List and explain the three largest reconciling differences.

9. How does the University of Minnesota compare to the State Colleges and Universities from

a financial perspective?

Answer 1

• The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. MSRS’ financial statements are reported using the accrual basis of accounting
• Governor : Mark Dayton
• Attorney General Lori Swanson
• State Auditor Rebecca Otto
• CJI: Lorie Skjerven Gildea

1. List the government wide financial statements.

• Statement of Fiduciary Net Position
• Statement of Changes in Fiduciary Net Position

2. List the three types of government activities broken down in the government wide financial

statements.

• receipt of contribution from members, employers and general fund
• investments of the contribution received to earn interest income
• deduction of money spent on welfare activities

3. What type of activity would Metropolitan State University considered?

• receipt of contribution from members, employers and general fund

4. List the state’s top three component units.

State of Minnesota component units include the Housing Finance Agency, Metropolitan Council, University of Minnesota as top 3

An expert here is allowed to answer initial 4 question only. Hope this helps. Thanks