A government-wide statement of net position must include which of the following?
GASB Codification Section 2200 – Annual Comprehensive Financial Report (formerly comprehensive annual financial report) Show
Financial reporting is the process of communicating information concerning the financial condition and activities of an entity. Although governmental financial reports are useful to internal government officials, they are also intended to meet the information needs of citizens, governing and legislative bodies, sellers and buyers of debt instruments, and other parties external to government. The users of these financial statements are numerous and varied. They have different objectives and use the financial statements for different purposes. Some examples of these users include taxpayers, service consumers, governing boards, oversight bodies, investors, creditors, government employees, and participants in the annual operating budget/legal appropriation process. The financial statements can benefit many users, but to fully understand the financial statements some knowledge of governmental accounting and financial reporting is necessary. The minimum financial reporting requirements for general purpose governments include the:
MD&A, which is required supplementary information, should focus on the State and include a brief discussion of the basic financial statements. Information presented should support the analysis of financial position and results of operations. Elements to be included in the discussion include:
The basic financial statements consist of the following:
Required supplementary information (other than MD&A) includes:
Budgetary comparison schedules should present inflows, outflows, and balances for both the original and final cash-basis financial plans for the fiscal year, as well as actual amounts stated on the State’s budgetary basis. Infrastructure asset information would include schedules reporting the assessed condition and assessment dates and the estimated annual amount required to maintain or preserve the asset compared with amounts actually expensed for each of the past five fiscal years. In addition, disclosures should accompany the schedules that describe:
The schedules for other postemployment benefits (OPEB) should present changes in net OPEB liabilities and related ratios. The required supplementary information for pension plans should include schedules of: the proportionate share of the net pension liabilities, employer contributions, and changes in the net pension liability and related ratios.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or programs are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Certain indirect costs have been allocated and are reported as direct program expenses of individual functions/programs. Program revenues include: (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; (2) grants and contributions that are restricted to meeting the operational requirements of a particular function or segment; and (3) capital grants and contributions, including special assessments. Internally-dedicated resources are reported as general revenues rather than as program revenues. Taxes and other items not included as program revenues are reported as general revenues, as required. Separate financial statements are provided for Governmental Funds, Enterprise Funds, and Fiduciary Funds, even though Fiduciary Funds are excluded from the government-wide financial statements. Major individual Governmental Funds and major individual Enterprise Funds are reported as separate columns in the fund financial statements. The government-wide financial statements are prepared using the economic resources measurement focus and the accrual basis of accounting, as are the Enterprise Funds, Component Units and the Fiduciary Funds financial statements. Revenues are recorded when earned and most expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Taxes are recognized as revenues in the year in which they are earned. Grants, entitlements, and donations are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are prepared using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collected within the current period or collectible within 12 months of the end of the current fiscal period. Tax revenues are recorded by the State as taxpayers earn income (personal income, general business, and other taxes), as sales are made (consumption and use taxes), and as the taxable event occurs (miscellaneous taxes), net of estimated overpayments (refunds). Receivables not expected to be collected within the next 12 months are offset by an unearned revenue liability when not earned, and by a deferred inflow of resources if earned but not available. Expenditures and related liabilities are recorded in the accounting period the liability is incurred, to the extent it is expected to be paid within the next 12 months with the exception of items covered by GASB Interpretation 6 (GASBI 6), Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements. GASBI 6 modified the recognition criteria of certain expenditures and liabilities. GASBI 6 requires that expenditures and liabilities such as debt service, claims and judgments, and compensated absences be recorded in the governmental fund statements only when they mature or become due for payment within the period. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Non-exchange grants and subsidies such as local assistance grants and public benefit corporation subsidies are recognized as expenditures when all requirements of the grant and or subsidy have been satisfied. In order to provide financial information to satisfy the needs of a broad range of users, New York State will annually issue an easily understandable and efficiently organized Annual Comprehensive Financial Report (ACFR) that is the State's official Annual Report. It is comprehensive in the depth and breadth of its reporting detail and provides full disclosure in accordance with the requirements of GAAP. The ACFR will contain an introductory section, financial section, and statistical section. The ACFR will be organized as follows: What is the governmentGovernment-Wide Financial Statements: Statement of Net Position. The difference between an entity's assets plus deferred outflows of resources and its liabilities plus deferred inflows of resources represents its net position.
What is included in governmentThe government-wide financial statements (i.e. the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the primary government and its component units.
What are the components of net position?Financial Statement Presentation
There are three components of net position: Net investment in capital assets. Restricted (should display the major categories of restrictions) Unrestricted.
Which of the following fund types of a government reports a statement of net position?Capital Projects Fund
Capital assets and the liability for capital debt are reported in the Government-wide Financial Statements – Statement of Net Position.
|