An 8-10 page paper that thoroughly analyzes the financial health of the City of Magnolia Texas.
Accessing and Reviewing the CAFR
You will need to download and thoroughly review the most recent CAFR for that entity. The CAFR provides a comprehensive overview of the entity’s financial position and includes various sections that you will need to analyze.
When reviewing the CAFR, pay close attention to the following sections:
- Management’s Discussion and Analysis (MD&A): This section provides a narrative overview of the entity’s financial performance and is an excellent starting point for understanding the context of the financial data presented.
- Government-wide Financial Statements: These statements, including the Statement of Net Position and the Statement of Activities, provide a broad overview of the government’s financial health, showing both financial and non-financial assets and liabilities.
- Fund Financial Statements: These statements offer more detailed information about specific governmental funds, such as the General Fund, Capital Projects Fund, and Debt Service Fund. You will need to analyze how these funds are accounted for and reported.
- Notes to the Financial Statements: The notes provide essential explanations and additional details that are not immediately apparent in the financial statements. They are critical for understanding the financial health of the entity.
- Required Supplementary Information (RSI): This section includes budgetary comparison schedules, pension liability disclosures, and other important financial data that you will need to evaluate.
- Statistical Section (if applicable): The statistical section offers trend data and other supplementary information that can be useful for assessing the entity’s long-term financial performance.