Comprehensive Annual Financial Report (CAFR) Assessment

Comprehensive Annual Financial Report (CAFR) Assessment

Download a copy of the most recent CAFR for a local governmental/not-for-profit entity of your choice and familiarize yourself with the contents. The entity’s website is often a great source for this document.

The six-to-eight page Final Paper will discuss/analyze the document with at least three scholarly sources in addition to the text and must contain the following sections:

1. Introduction
2. Refer to the letter of transmittal or other narrative that accompanies the document. Provide an introduction to the chosen entity. This introduction should contain information regarding the history of the entity, including the mission, services provided, and area or individuals served.
3. Financial Section
4. Audit Report
5. Discuss the opinion expressed (unqualified or qualified) and the independent firm or government organization providing the opinion. Include a discussion of the statements covered by the opinion (basis statement plus combining statements and fund statements).
6. Financial Statements
7. Discuss the statements included in the report (government and/or fund statements), including any noted trends or concerns.
   ii. Discuss each fund utilized by the entity, including the type of fund, source of revenues, noted trends, and financial condition.
8. Notes to the Financial Statement
9. Discuss the number of notes contained in the report and topics covered. Are any concerns noted after reading the notes?
10. Management Discussion and Analysis (MD&A)
11. Discuss the provided MD&A, including any concerns, trends, and anticipated changes.
12. Operations
13. Capital Assets
14. Discuss the capital assets reported on the government-wide statement and the note disclosures regarding balance changes as well as policies regarding depreciation and capitalization thresholds.
15. General Long-term Liabilities and Debt Service Funds
16. Discuss any noted general Long-term Liabilities, including changes, debt limitations, and any overlapping debt.
    ii. Discuss whether a Debt Service Fund is noted, including the debt instrument being serviced by the fund.
17. Internal Service and Enterprise Funds
18. Discuss whether any activities are administered by an internal service or enterprise fund. If an internal service fund is not utilized, note how activities commonly used by more than one fund such as purchasing and printing are handled. Note whether any enterprise fund is operating at a deficit, and if so, how it is handled.
    ii. Discuss any regulations governing the operations of the enterprise fund(s).
19. Fiduciary Funds
20. Discuss whether any fiduciary activities are reported noting the fund utilized, purpose, and basis of accounting used.
21. Recommendations
22. As a result of reviewing the CAFR, discuss any recommendations you might have for improving the financial position of the entity. Keep in mind any items noted in the audit report, MD&A, as well as foot notes.
23. Conclusion
24. Summarize your findings, including any noted trends and concerns.

The CAFR Assessment

1. Must be six to eight double-spaced pages in length (excluding the title and reference pages), and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:
   1. Title of paper
   2. Student’s name
   3. Course name and number
   4. Instructor’s name
   5. Date submitted
3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must use at least three scholarly sources from the Ashford University Library, in addition to the text.
7. Must document all sources in APA style as outlined in the Ashford Writing Center.
8. Must include a separate reference page that is formatted according to APA style as outlined in the Ashford Writing Center.

Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.

GRADING RUBIC:

Part 1: Provides an Introduction of the History, the Mission, Services Provided, and Area or Individuals Served for a Local Governmental/Not-For-Profit Entity Using the Entity’s’ Comprehensive Annual Financial Report (CAFR)

Total: 1.00

Part 2a: Discusses (a) the Opinion Expressed (Unqualified or Qualified), (b) the Independent Firm or Government Organization Providing the Opinion, and (c) the Statements Covered by the Opinion (Basis Statement Plus Combining Statements and Fund Statements)

Total: 2.00

2b i: Discusses the Financial Statements Included in the Report, Including Any Noted Trends or Concerns

Total: 2.00

2b ii: Discusses Each Fund Utilized by the Entity, Including the Type of Fund, Source of Revenues, Noted Trends, and Financial Condition

Total: 2.00

2c: Discusses the Number of Notes Contained in the Report, Topics Covered, and Any Concerns Noted After Reading the Notes

Total: 2.00

2d: Discusses the Provided Management Discussion and Analysis (MD&A), Including any Concerns, Trends, and Anticipated Changes

Total: 2.00

3a: Discusses the Capital Assets Reported on the Government Wide Statement and the Note Disclosures Regarding Balance Changes and Policies Regarding Depreciation and Capitalization Thresholds

Total: 2.00

3b i: Discusses Any Noted General Long-Term Liabilities, Including Changes, Debt Limitations, and Any Overlapping Debt

Total: 2.00

3b ii: Discusses Whether a Debt Service Fund is Noted, Including the Debt Instrument Being Serviced by the Fund

Total: 2.00

Part 3c i: Discusses Whether any Activities are Administered by an Internal Service or Enterprise Fund (a) Noting how Activities Commonly Used by More Than One Fund Such as Purchasing and Printing are Handled if an Internal Service Fund is not Utilized, and (b) Noting Whether any Enterprise Fund is Operating at a Deficit, and if so, how it is Handled

Total: 2.00

3c ii: Discusses Any Regulations Governing the Operations of the Enterprise Fund(s)

Total: 2.00

3d: Discusses Whether Any Fiduciary Activities are Reported Noting the Fund Utilized, Purpose, and Basis of Accounting Used

Total: 1.50

4a: Discusses Any Recommendations for Improving the Financial Position as a Result of Reviewing the CAFR

Total: 1.50

5a: Summarize the Findings, Including any Noted Trends and Concerns

Total: 1.00