This project will be completed using a comprehensive annual financial report (CAFR) you will select from a city within the United States. Instructions to complete the project are listed below. You may also view and print the project instructions and the grading rubric by clicking on the links above. The project is valued at 100 points.Refer to your course schedule for the project due date.Basic Overview Instructions:
To complete the project you will select a city within the United States of your choosing. Next, locate that city’s most recent CAFR. Please note, the CAFR must be available online.Pleasedo not printthe CAFR
!There could be over 100 pages in the full report.Then, identify your chosen city/state and post a link to your city's CAFR in the Discussion Board labeled "CAFR Selection." Next, prepare a report on the list of items below as they relate to your selected CAFR. Finally, submit your written report for grading. To access the submission link, log-in to Blackboard, from the main navigationmenu, select "Assignments," then select the "CAFR Project" folder and finally"Submission Link." Detailed Instructions:First:
Decide on the city you will work with for this project and go onlineto search for that city's most recent CAFR. Post the name of the city and state in the Blackboard discussion forum. To do this, go to the main navigation menu in Blackboard and select Discussion Forum. Select “Link to Discussion Board.” Next, select “CAFR Selection.” You will create a new thread. Title your thread with the name of your chosen city and state followed by your last name, then first name. Each student must select a different city
– no duplications. Finally, post a link to your chosen city's CAFR in the same post.Second:
Report on each question in the list of 12 items below using your selected city’s CAFR.Number your responses to match the question being addressed (1 – 12). Please write in complete sentences and remember proper grammar is always anticipated. Your report should be double spaced, at least 2 pages long but no more than 5 pages. Use 12 pt Times New Roman font. The report is expected to be neat and organized. PleaseThird:
After writing your report, submit it in Blackboard. From the main navigation menu, see “Assignments” then “CAFR Project” and "CAFR Project Submission Link."Report on items 1-12 using your city's CAFR
- Begin by identifying your city and state and provide a short overview, such as population size, primary industries, historical significance, etc. Be sure to include the CAFR’s reporting dates.Has your city been awarded the Certificate of Excellence? Was a copy of the certificate included in the CAFR?
- Review the letter from the auditor. Did your city receive an unqualified opinion? If no, why not?
- Who signed the letter of transmittal? What is their title?
- What measurement focus and basis of accounting does your chosen city use to prepare the governmental fund statements? Are there any revenues that are subject to full accrual? If so, which one(s)? What measurement focus and basis of accounting does your chosen city use to prepare the government-wide financial statements?
- Is your city required to maintain a reserve? If so, how much and which account?
- Review the General Fund: What are the major asset categories? What are the major categories of liabilities? Is the Fund balance at the beginning of the year greater or lessor than at the end of the year? Can you identify any reasons why this may be the case? Do you think population size impacts these numbers?
- Does your city report any Special Revenue Funds as a major fund? If so, what are they? What are their main sources of revenue? What are the expenditure functions?
- Does your city report capital projects (assets)? If so, report on the two most expensive projects.
- How much long-term debt is outstanding? What is your city’s bond rating? Is it considered good rating? You may have to research your textbook or the Internet to find bond rating information.
- Does your CAFR have a Budgetary Comparison Schedule in Required Supplementary Information (RSI) section for the General Fund? Does the schedule include columns for original budget, revised (final) budget and actual? Are the variances between the budget and actual presented? If so, what is the largest variance reported? Is there any information listed in the Disclosure Notes to the financial statements to help you understand why this variance may have occurred?
- Review the Disclosure Notes and select two items of interest. Discuss them in your written report. Why did you select them and/or what makes them interesting to you? Do the notes include a description of modified accrual accounting? Do the notes disclose anything about pending legal issues? If so, report on the issue(s).
- Based on what you have learned about your chosen city, if the city was offering its own municipal bonds as an investment, would you invest in them? Why or why not? What influenced your decision the most?