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Unformatted text preview: Chapter 09 - Financial Reporting of State and Local Governments 9-1 CHAPTER 9: FINANCIAL REPORTING OF STATE AND LOCAL GOVERNMENTS OUTLINE Number Topic Type/Task Status (re: 14/e) Questions: 9-1 Special districts Explain New 9-2 Notes and required supplementary information Compare New 9-3 Interim reports Explain New 9-4 Financial reporting entity Explain New 9-5 Primary government vs. component unit Explain 9-6 9-6 Discrete vs. blended presentation Explain Revised 9-7 9-7 CAFR and general purpose reports Explain New 9-8 Required financial statements List New 9-9 Reconciliation of financial statements Examples Same 9-10 Contemporary issues Explain Same Cases: 9-1 Identification of component units Analysis New 9-2 MD&A and statistical tables Analysis New 9-3 Popular reports Internet Same Exercises/Problems: 9-1 Examine the CAFR Examine Same 9-2 Various Multiple Choice Revised 9-3 Various Multiple Choice Same 9-4 Comprehensive set of transactions Journal Entries 9-5 9-5 General Fund adjusting and closing entries Journal Entries 9-6 9-6 Adjusting net asset balances Matching Revised 9-7 9-7 Change in net assets Calculation Revised 9-8 9-8 Governmental fund financial statements Error identification New 9-9 Government-wide financial statements Preparation New 9-10 Modified accrual to accrual accounting Adjustment JEs New Chapter 09 - Financial Reporting of State and Local Governments 9-2 CHAPTER 9: FINANCIAL REPORTING OF STATE AND LOCAL GOVERNMENTAL UNITS Answers to Questions 9-1. According to the Bureau of Census a special district is a special purpose government, other than a school district, that is separate from the general purpose government. A special district has considerable administrative and fiscal independence from the general purpose government. Special districts are frequently created to allow for financing of general purpose government activities, which cannot be financed by the general purpose government due to constitutional or statutory limits on revenue generation. 9-2. A note to the financial statements is an integral part of the financial statements. It is used to provide information that is essential to the readers understanding of information recognized in the financial statements. Although required supplementary information is considered to provide information that is essential to the reader, it does not exist to help explain information recognized in the financial statements. Rather, required supplementary information is used to help place the financial statements and the related notes into the correct context. 9-3. Disagree. Administrators need periodic reports in order to make day-to-day operating and management decisions. Government council members should expect at least monthly financial information so that they can provide oversight of the managers. Interim reports are especially helpful in evaluating whether budgets and cash needs are being met....
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- Fall '08