One of the fundamental differences of governmental budgets is their mandate to create transparency to citizens and

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Question:

One of the fundamental differences of governmental budgets is their mandate to create transparency to citizens and taxpayers. The objective of this assignment is to analyze key elements of a municipal comprehensive annual financial report (CAFR).

Select a city of your choice and find that city's comprehensive annual financial report (CAFR) online. Review the CAFR, then write an analysis of the budget for the city. Be sure to address the following:

Analyze the accounting basis selected and used by the city. What accounting basis was used to prepare the city's annual operating budget, and why was it likely chosen?

Analyze the elements of a CAFR. Are the actual numbers in the CAFR on a budget or GAAP basis? Is a reconciliation included in the CAFR that shows variances between planned and actual amounts?

If the reconciliation is included, what is the largest variance item? What were the causes for the variance?

If the reconciliation is not included, why do you think it may have been omitted?

Evaluate municipal encumbrances. Based upon your review, does the governmental entity encumber goods or services that are ordered but have not been received? How are encumbrances for the year included in the fund balance sheet and the government-wide statement of net position. In general, do encumbrances that are still outstanding at the end of the year lapse and have to be budgeted again? Support your response.

Evaluate the effectiveness of the municipal budget. Based upon your review of the budget and budget to plan results, are the city leaders effective at budgeting? Explain.

Make budgetary recommendations for the city based on the CAFR. What could have been done better and what steps can be taken by the city to make sure this is achieved?

Submit your selected CAFR by placing it in a Word document and turning it in with the assignment. Provide a link to it as well.