Essentials of Accounting for Governmental and Not-for-Profit Organizations 10th Edition by Paul Copley, John Engstrom

Exercise 1

Using the Comprehensive Annual Financial Report obtained for Exercise 1-1, answer the following questions.
a. Compare the items discussed in the MD A in your CAFR with the list of items in this chapter. Which topics listed in this chapter are not in your CAFR Which topics are in your CAFR that are not listed in this chapter Do you think your CAFR has a reasonably complete discussion
b. From the MD A in your report, write a short summary of (1) the finan­cial condition of your government, (2) a comparison of revenues com­pared with the prior year, (3) a comparison of expenses compared with the prior year, and (4) a comparison of budgeted and actual activity.
c. From the Statement of Net Assets, write down the following: (1) unrestricted net assets-governmental activities; (2) unrestricted net assets-business- type activities; (3) restricted net assets by restriction-governmental activities; (4) restricted net assets by restriction-business-type activities; and (5) unrestricted and restricted net assets-component units.
d. From the Statement of Activities, write down the following: (1) net pro­gram expense (or revenue)-governmental activities; (2) net program expense (or revenue)-business-type activities; (3) net program expense (or revenue)-component units; (4) change in net assets-governmental activities; (5) change in net assets-business-type activities; and (6) change in net assets-component units. Do the ending net asset figures in this statement agree with the net asset figures in the Statement of Net Assets
e. From the Statement of Revenues, Expenditures, and Changes in Fund Balances for Governmental Funds, identify the names of the major gov­ernmental funds.Write down the net change in fund balance for each major fund.
f. From the governmental fund statements, take one major fund (other than the General Fund) and prove, using the 10 percent and 5 percent criteria described in this chapter, that the fund is required to be reported as a major fund.
g. From the Statement of Revenues, Expenses, and Changes in Fund Net Assets list the major enterprise funds. For each, write down: (1) the op­erating income, (2) the net income (loss) before contributions and (3) the change in net assets.