Assignment 3: Complete the Annual Comprehensive Financial Report (ACFR) Analysis Paper

Background

This assignment aims to bridge the gap between theory and practice by allowing you to examine governmental accounting and reporting based on your chosen city.

Instructions

To complete your ACFR Research Analysis Paper, select a city of your choosing and access that city’s government website to download its Annual Comprehensive Financial Report (ACFR) required to complete your written analysis, which is comprised of two parts.

Review the resources provided within Week 3 of your Course Resources.

Your research analysis paper must address the following:

Introduction and Applications

1. As you prepare your research analysis paper, make sure to:

a. Include an introduction highlighting the purpose of the paper and an intro to the city you selected. 

b. Include graphs or charts in the body of the report to compare topics, data, statistics, and anything else you need to present to support your data analysis or to help the reader understand your point. Do not just say it is there; give examples of its presentation and implications.  

c. Complete your analysis using two levels: 

i. The quality of the reports in terms of meeting Governmental Accounting Standards Board (GASB) or Government Finance Officers Association (GFOA) award requirements, including how “user friendly” it is in your opinion (support your opinion).

ii. Include some data analysis such as where the money is spent, how healthy the current revenue stream is, the reserves, how well inter-period equity issues are addressed, etc.

d. Review the format and the presentation of the ACFR, which should include mention of significant differences between the conclusion of your overall assessment.  

Part 1: Budget Analysis

As you complete your budget analysis, make sure to:

1. Complete a budget analysis using visuals as well as text to address the following: 

a. What major concerns are addressed in the budget document?
b. What is the total city budget? Break out the budget for the enterprise funds versus the general fund.   
c. What sources of revenue are received by the city overall?

2. Look at the General fund budget overall. Compare revenues and Expenditures budgeted to:  

a. Determine which Department consumes the most general government resources (support your selection).  For that department, answer these questions: 

i. What are the department’s goals and purpose?  How does that match with what you would think the citizens Expect?

ii. Are there revenues specific to the department?

iii. What are the budgeted Expenditures?  Provide Examples from the budget.

iv. If a 15% decrease is to be made for this department, you have chosen where you would cut the budget.  Explain why and what you think the overall effect of this decrease would be on the department.

v. Anything else you think is significant about this department’s budget?

Part 2: ACFR Analysis

To complete the ACFR analysis, make sure to:

1. Read the Transmittal Letter, Management Discussion and Analysis (MD&A), and notes. For additional reference, look for official reports or financial information, such as reports to the Council about the ACFR.  

a. Provide an analysis of the ACFR using text and graphics as if you were presenting your analysis to someone to inform them about ACFRs in general and this city in particular.  

b. Include the answers to the following questions in your analysis. Be sure to also conform to the guidelines for the paper overall presented in the first section of these instructions and support your opinions with references or examples.  

i. Has the city received an award for the ACFR? If so, you don’t need to spend time analyzing conformity with GASB 34 requirements.

ii. What details are available in the notes for the statements that would be useful to a reader (citizen, potential commercial operation, etc.)?

iii. What is the financial situation for this government? Support your comments with examples from the ACFR. Is there sufficient information to determine the financial health of the government?    

iv. Compare the information provided in the ACFR and the budget for this city, including a review of the budget vs. actual statements in the ACFR.   

Length: This assignment should be 8-10 pages (excluding the title and reference page).

References: Include as many scholarly resources as necessary.

Additional Resources

• Project Suggestions
• Project Template

Grading

This assignment is worth 100 points and is due on Sunday. Refer to the rubric for more specifics on how this will be graded.