Government-Wide Statements & the Annual Comprehensive Financial Report

Annual Comprehensive Financial Report (ACFR)

Introductory (transmittal letter) · Financial (auditor's report, management's discussion and analysis (MD&A), basic statements, required supplementary information (RSI)) · Statistical (10-year trends).

Statement of activities

• Program revenues: charges for services, operating grants, capital grants.
• General revenues: all taxes, unrestricted grants, investment earnings.
• Special items: unusual or infrequent, in management's control. Extraordinary: unusual and infrequent.

Reconciliation (funds → government-wide)

• + capital outlay − depreciation.
• − bond proceeds + principal repaid.
• + previously deferred revenues; − accrued long-term expenses.
• + internal service fund net position.

Net position

Net investment in capital assets · restricted · unrestricted.

Component units

Financially accountable → include. Blended if same board with operational responsibility or serves the government exclusively; otherwise discrete column.

Other

Infrastructure modified approach; net pension liability; tax abatement disclosures.

Exam traps

• Fiduciary funds are left out of the government-wide statements.
• Internal service funds are usually reported with governmental activities.
• Taxes are always general revenues — even a tax earmarked for one program.
• MD&A and the budgetary comparison are RSI, not part of the basic financial statements.