Analysis of Comprehensive Annual Financial Report
Table of Content
III. Introductory analysis & GFOA Award
IV. Financial Analysis
V. Financial standing
Comprehensive Annual Financial Report (CAFR) is a report used by cities, and local governments to provide the public with their financial records each year, while adhering to government accounting standards board (GASB) guidelines. The report presents a comprehensive picture of the reporting entity’s financial condition, it provides how funds are spent and allocated throughout the year.
I will be covering the Carlsbad CAFR for year ended 2011. The Beautiful city of Carlsbad is located along the coast of southern California. Carlsbad is known for its beautiful beaches, and lagoons which cover 1,000 Acres of nature preserves and hiking trails. Its history dates back to 1700, before becoming part of the United States, it was a territory of Spain and then Mexico, the shoreline of Carlsbad’s coastal lagoon was home to the indigenous Luiseno and Diegueños Indians for centuries before the arrival of the Spaniards (City of Carlsbad, n.d.). The current population of the city is approximately 107,000 residents; total area is 42 Sq. Miles (City of Carlsbad, n.d). The cities top business consists of hospitality, life science, sporting goods and recreation, and telecommunications. The city provides a wide range of services to residents such as; police, fire, infrastructure, and general administration, the CAFR provides detailed information about how these services are funded, and the type of the governmental funds allocated for these services. The city exhibits accountability and honesty by sharing the CAFR with its residents, in turn this builds trust in the residents toward their city, trust in that their hard earn money is being used in the appropriate services, and these funds are put back in to the maintenance and development of their communities. I will be presenting an analysis of Carlsbad’s comprehensive annual financial report for year ended 2011. The report consists of three sections that are introductory, financial, and statistical.
The introductory for the city Carlsbad’s CAFR begins with a five-year vision statement, it is general vision statement, I find this very encouraging, and reassuring to present it before going into depth with the report. It includes the city’s economic goal, programs, policies, and decisions to be implemented by the city’s officials; it also lists the type of leadership, the open government policy, and they type of environmental services and how they are managed. Then one can find the Letter of Transmittal presented by the city’s finance department, addressed to the mayor, city council and citizens of Carlsbad. The letter is to explain why the CAFR is prepared, what is included in the CAFR, the guidelines followed such as Generally Accepted Accounting Principles (GAAP) and that GASB requirements were preserved in the report; the finance department received an auditing from the independent auditing firm Mayer Hoffman McCann, they also included where the results of the auditing can be located which I will cover in the financial analysis later on. In addition the letter offers an audited governments internal control and compliance with legal requirements were in place. The letter also includes a profile of the city, stating the population, geographical location of the city, a section about the city of Carlsbad community vision, budget process that explains priority projects for the city, and budgetary controls. Followed by factors affecting financial condition, in this section there are Economic profile, long term financial planning, and cash management. Economic profile covers economic strengths and weakness of the city, the city shows improvement in most of its General fund...
References: 1- The city of Carlsbad CAFR webpage
2- Carlsbadistan web page
3- Accounting for Governmental and Nonprofit Entities(15th edition)
4- APA Reference Guide
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