Financial Reporting: The Basic Financial Statements & Required Supplementary InformationLearning ObjectivesMajor Elements of Principle #13Interim Financial StatementsComprehensive Annual Financial ReportFinancial Reporting EntityReporting Entity’s Financial StatementsNucleus of Financial Reporting EntityFocus of this ChapterWhat makes up the minimum? Three graphic presentations XBasic Financial Statements OverviewBFS Overview (continued)Government-Wide Financial Statements: Common FeaturesGovernmental ActivitiesBusiness-Type ActivitiesStatement of Net AssetsKey Features of StatementKey Features of Statement (continued)Slide 19Statement of Net Assets Example: City of Tulsa, Oklahoma XStatement of ActivitiesStatement of Activities PresentationStatement of Activities Presentation (continued)Measurement Focus elementsReporting ExpensesProgram Revenues vs. General Revenues XSlide 27Infrastructure Capital AssetsFund Financial StatementsIdentifying Major FundsSteps for Major Fund Calculations XMajor Fund ReportingFund Type ReportingFund Reporting Examples: City of Tulsa – Governmental FundsSlide 35Slide 36Fund Reporting Examples: City of Tulsa – Proprietary FundsSlide 38Slide 39Slide 40Fund Reporting Examples: City of Tulsa – Fiduciary FundsSlide 42Note DisclosuresRequired Supplementary InformationOther RSIBudgetary Comparison InformationFund Reporting Examples: City of Tulsa – Budget-to Actual dataFinancial Reporting:The Basic Financial Statements & Required Supplementary InformationChapter 13Learning ObjectivesIdentify the financial statements in a government’s basic financial statementsUnderstand format and content of government-wide financial statements and fund financial statementsUnderstand the concept and content of RSIIdentify a government’s major funds and how to prepare fund financial statementsDistinguish program revenues from general revenuesUnderstand unique reporting provisions of infrastructure capital assetsUnderstand required information components of MD&AUnderstand types of notes to financial statementsUnderstand reporting requirements of special purpose governmentsMajor Elements of Principle #13Interim financial statements & reportsComprehensive Annual Financial Report (CAFR)Minimum reporting requirementsMD&ABasic Financial StatementsRequired Supplementary InformationFinancial reporting entityNucleus of a financial reporting entityInterim Financial StatementsEncouraged, but not requiredPrepared to facilitate management’s control of the government, legislative oversight, and [occasionally] external financial reportingComprehensive Annual Financial ReportShould be prepared and publishedCovers primary government (including blended component units) and discretely presented component unitsIncludes:Introductory SectionFinancial SectionStatistical SectionFinancial Reporting EntityConsists ofPrimary GovernmentOrganizations for which the primary government is financially responsibleOther organizations whose exclusion from the report would cause it to misleading or incompleteReporting Entity’s Financial StatementsGovernment-Wide Financial StatementsProvides information about the reporting government as a wholeDistinguishes between primary government (composed of Governmental Activities & Business-Type Activities) and discretely presented component unitsFund Financial StatementsPresents primary government’s major funds individually and nonmajor fund in aggregateFunds and component units that are fiduciary in nature reported only at this levelNucleus of Financial Reporting EntityUsually a primary governmentOther entities can serve as nucleus of own reporting entity, even when related to a primary governmentFinancial reports built from the bottom up, applying all definition and display provisions to each level before rolling up to next levelFocus of this ChapterMinimum requirements for financial reporting, which are the MD&A, basic financial statements, and other RSISome governments may be required to present a CAFR – topic of Chapter 15What makes up the minimum?Three graphic presentations XBasic drawing from GASBS #34New drawing from later GASB source“Smitty’s Adaptation of The New Reporting Model”Basic Financial Statements OverviewGovernment-Wide Financial StatementsStatement of Net AssetsStatement of ActivitiesGovernmental Funds Financial StatementsBalance SheetStatement of Revenues, Expenditures, and Changes in Fund Balances (GAAP basis)Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and ActualBFS Overview (continued)Proprietary Funds Financial StatementsStatement of Net Assets (Balance Sheet)Statement of Revenues, Expenses, and Changes in Net AssetsStatement of Cash FlowsFiduciary Funds Financial StatementsStatement of Fiduciary Net AssetsStatement of Changes in Fiduciary Net AssetsGovernment-Wide Financial Statements:Common FeaturesDistinguish between primary government and discretely presented component unitsFocus is on the primary governmentDistinguish between primary government’s Governmental Activities and Business-Type ActivitiesPresent a total column for the primary governmentApply same accounting standards to Governmental Activities and Business-Type ActivitiesExclude Fiduciary Funds and fiduciary component unitsGovernmental ActivitiesFinanced primarily throughTaxesIntergovernmental revenuesOther nonexchange revenuesGenerally reported in Governmental Funds and, maybe, Internal Service FundsMost general capital assets and general long-term liabilities reported hereActivities include general administration, public safety, education, streets & roads, and health & sanitationBusiness-Type ActivitiesFinanced in whole or in part by fees charged to external users for goods and servicesGenerally reported in Enterprise Funds, although ISFs can be here, tooActivities may include public utilities, mass transportation, landfills, airports, and some recreational facilitiesStatement of Net AssetsGenerally same format as used by Proprietary FundsMay use either balance sheet format or net asset formatMay or may not be classifiedColumns may includeGovernmental ActivitiesBusiness-Type ActivitiesPrimary Government Total Column (required if both GA and BTA present)Discretely