Recognizing Expenditures: CAFR for the City of Winston-Salem

Recognizing Expenditures
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Recognizing Expenditures
The CAFR publication method for Winston-Salem, NC, has information introductory, financial, statistical, and single audit sections. In the CAFR for Winston-Salem, the report’s publication method focuses on four primary sections; the introductory section, financial section, statistical section, and compliance section. The methods both contain four sections. Winston-Salem, NC, has a section on audit compliance, auditing, expenditures, and the previous year’s audit.
Cherry Bekaert LLP, an independent auditor, issued an unmodified opinion that the financial statements of the City of Winston-Salem complied with US GAAP and other auditing standards. The budget provides expenditure and revenue information. The audit was part of a Single Audit that focuses on both the financial statements and the federal grants. Similarly, for the Town of Cary, Cherry Bekaert also provided an unmodified or clean opinion that there was a fair presentation of the financial statements in conformity with GAAP. There was the absence of material mistakes in the government’s financial statements.
Both cities have internal audit systems necessary to maintain strong internal control systems and support the governance processes. The internal audit systems ensure reliable financial reporting, compliance with the laws and regulations, and improve risk management in Winston-Salem under the performance and accountability office (2020).
In Winston-Salem, the introduction section contains information on the letter of transmittal, local economic changes, certificate of achievement, community profile organizational structure, and the city officials. The introduction section in Cary’s CAFR also begins with the letter of transmittal. Still, the city reports contain more subsections, such as the town’s mission statement and values statement. The CFAR reports for the two governments include a certificate of achievement, which is reported in the introduction section, but under different subsections for the two government reports.
Budget-to-actual reports are in the finance section and under the general fund in the city of Winston-Salem. The report compares the actual (original and balance) and budgeted balance in 2019 while indicating the variance. Cary’s budget and the actual general fund are also reported like the city’s report. They include the actual 2019 figures besides the original budget, final budget, the exact figure, and the variance with the final budget for 2020. The two local governments compared the budget and Actual General Fund, where the balances were determined as the actual figures less the budgeted figures. The figures are mostly positive variances, but there are negative balances in both reports.
There is a modified accrual accounting in financial presentation for both governments, which affects how the governmental funds, expenditures liabilities, and long-term debt are reported. Revenue recognition focuses on the revenue being measured, received, and accrued).
Winston-Salem’s total property tax...