Download a copy of the most recent comprehensive annual financial report (CAFR) for the city and county of Denver from its web site: https://www.denvergov.org/controller (click on "Financial Reports"), or that of city or county if you wish.* Familiarize yourself with the organization by scanning the report and reread the section in this chapter entitled "Financial Reporting of State and Local Governments." Be prepared to discuss in class the item suggested below.

  a. Introductory Section.
      Read the letter of transmittal or any narrative that accompanies the financial statements. Does this material define the governmental reporting entity and name the primary government and all related component unit included in the report? (Note: the reporting entity may be discussed in the notes to financial statements rather than in the transmittal letter.) does the introductory section discuss the financial condition of the reporting entity at the balance sheet date? Does it discuss the most significant changes in financial condition that occurred during the year? Does it alert the reader to forthcoming changes in financial condition that are not as yet reflected in the financial statements? Do the amounts reported in the letter of transmittal or other narrative agree with the amounts in the statements and schedules in the financial section? Does the introductory section include a list of principal officials? An organization chart? A reproduction of a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA)? Assuming the government follows GASBS 34. compare the information in the letter of transmittal worth that in the management discussion & analysis (MD&A).
  b. Financial Section.
      (1)  Audit Report. Are the financial statements in the report audited by an independent CPA, state auditors, or auditors employed by the government being audited? Does the auditor indicate who is responsible for preparing the financial statements? does the auditor express the opinion that the statements are "in accordance with generally accepted accounting principles applicable to government entities in the United States" or some other phrase? is the opinion qualified in some manner, disclaimed, or adverse? Does the auditor indicate that the opinion covers the basic financial statements or that plus combining statements?
      (2)  Basic Financial Statements. Does the CAFR contain the two government-wide financial statements and seven fund statements and required reconciliation?
      (3)  Notes to the Financial Statements. How many notes follow the required basic financial statements? Is there a phrase at the bottom of the basic financial statements indicating that the notes are an integral part of the financial statements?

* GASB's Web site, https://www.gasb,org provides a sizeable list of local governments that voluntarily report to the GASB and indicates whether their CAFRs can be downloaded. You can usually obtain a hard copy of the CAFR of any city by sending an e-mail request to the city's director of finance (or other appropriate title of the chief financial officer). Be sure to mention that you are a student and need the CAFR for a class project. contact information for the finance director can usually be obtained by doing a search on "City of (name)" and looking for a link to the city's departments. At the link, select Finance Department or department with a similar function, such as Accounting and Budgeting, Before you request a CAFR by e-mail, check to see if one is accessible at the department's Web site.
      (4)  Individual Fund and Combining Statements. Following the notes to the financial statements , does the CAFR provide combining and individual fund statements? Do these combining statements aggregate all the funds of a given fund type or all nonmajor funds?
      (5)  Management's Discussion and Analysis (MD&A). Foes the CAFR contain a MD&A? If so, where is it located and what type of information does it contain?
  c.  Statistical Tables,
       Examine these tables so that you can refer to them in discussions accompanying subsequent chapters. For example, is multiyear information provided about financial trends, revenue capacity, debt capacity, demographic and economic trends, and operating activities?