Definition and Elements of Financial Reporting

Answer these question:

1. What are the required sections of the CAFR?
2. In the Combined Statement of Revenues, Expenditures, and Changes in Fund Balance, all government fund types (or a similar titled statement)
   1. What governmental fund types are given?
   2. For each governmental fund, subtract the expenditures from the revenues and calculate whether revenues are adequate to cover the expenditures.
   3. Discuss whether it is easy or difficult for you to conclude from this particular statement whether the government (as a whole) has been financially successful or unsuccessful for the fiscal year reported.
   Photocopy this particular financial statement and attach your answers.
3. In the Balance Sheet, what are the names of the account groups?

The government collected $112,000 in taxes for everyday type of services. It spent $30,000 on administration for the general government. It spent $30,000 equally divided between safety, transportation, and health for the general government. It received $25,000 in intergovernmental revenue and $25,000 in fees for its recreation activities, which are run separately from the general government. Recreation spent $100,000 and received an operating transfer of $50,000 from the general fund. The general fund also transferred $2,000 to the debt service fund to pay interest on prior borrowing.