Essay about Generally Accepted Accounting Principles and Non-major Governmental Funds

Submitted By lawlessness
Words: 1566
Pages: 7

Chapter Two 1. The three main sections of the North Las Vegas CAFR are the Introductory Section, Financial Section and Statistical Section. 2. a. The city was awarded the certificate of achievements for excellence in financial reporting, for 31 years in a row. The GFOA established the Certificate of Achievement for Excellence in Financial Reporting Program (CAFR Program) to encourage and assist state and local governments to go beyond the minimum requirements of generally accepted accounting principles to prepare comprehensive annual financial reports. b. The Key issues presented in the letter of transmittal are: the local economy, long term financial planning, and initiatives. 3. c. The city of Las Vegas was given an unqualified opinion. d. The report contains a Management Discussion and Analysis section. Some of the key issues are the government wide financial statements, the fund financial statements, the government wide financial analysis and business type activities. e. There is no reconciliation report between the total governmental net assets per the government wide statement of net assets and total governmental fund balances per the governmental funds balance sheet. f. The major governmental funds maintained by Vegas are: the general fund, the public safety fund, capital fund and non-major governmental funds. The city’s fund structure conforms to its organizational structure, because it has the adequate fund categories to support proper governmental functions. g. The report includes required supplementary information. The main areas are post-employment benefits other than pensions and pension funds. h. The report includes combined statements. The combined statements are the revenues and expenses and changes in Net assets and the combining statement of Cash Flows of the non-major governmental funds, special revenue funds, debt service fund, capital projects funds, and proprietary funds. i. The report includes supplemental information. The supplemental information includes a schedule of business license fees based on revenues. 4. j. The population for 2011 was 146,005. k. The major employer is the College of Southern Nevada. l. The Statistical information includes financial trends, revenue capacity, debt capacity and demographic information.
Chapter Three 1. The budget-to-actual comparisons of the major funds are in the financial section. a. The actual amounts are on the basis of GAAP. The amounts include the differences between GAAP and budgetary amounts with revenues being the largest reconciled item. b. The variances reported are based on the original budget. 2. In the financial section, the CAFR includes the budget-to-actual comparisons of non-major funds. 3. The city encumbered goods and services that have been ordered but not have been received. 4. The encumbrances outstanding at year-end do lapse over. This can be identified by looking at the financial statements.

Chapter Four 1. The main sources of revenue are, license and permits and property taxes were the main sources of revenue for the general fund and consolidated taxes. 2. The function or activity that had the greatest revenue would be the revenue collected in taxes. 3. The report discusses the accounting bases for revenue recognition. Accrual base is used in the government-wide statements. 4. The government fund financial statements uses deferred revenue. The government-wide statements do not record deferred revenue. 5. The government’s property tax rate is $1.1637 per $100 in assessed valuation. 6. Not applicable 7. One the third Monday in August is when the property taxes are due. Interest and penalty start to accrue from the date the taxes are initially levied which is July 1st. 8. Property taxes increased 64.7%, consolidated taxes decreased 67.29%, licenses and permits…