Annual Comprehensive Financial Report (ACFR) – City of Fairfax, Virginia

Annual Report Analysis
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Annual Report Analysis
Exercise 2-15
A
The titles of the two government-wide statements presented in the City of Fairfax, Virginia Comprehensive Annual Financial Report (CAFR) are the Statement of Net Position and the Statement of Activities. The total assets for governmental activities at US$ 338,415,382 were larger than the total assets for business-type activities at US$ 46,665,576. Education had the highest total net costs at US$ 43,500,973. The types of general revenues that cover the net cost of governmental activities were general property taxes, local sales, and use taxes, business license taxes, consumer utility taxes, meals tax, franchise tax, other local taxes, unrestricted revenues from the use of money and property, contribution from city, grant, and contribution not restricted to specific programs, and miscellaneous revenues. The business-type activities were not profitable as the expenses were more than the revenues.
B
The statement notes that the modified accrual basis of accounting and reporting is used in a government fund, where the measurement focus is determining the financial position and changes in financial position. Consequently, the government fund balance sheet includes current assets such as cash and cash equivalents at hand, cash and cash equivalents held by others, receivables, inventories, prepaid items, due from other funds, due from other government, and due from components units. In the same vein, the balance sheet of the government fund contains current liabilities such as reconciled overdraft, accounts payable, retainage payable, customer deposits and other liabilities, dues to other funds, dues to components units, and unearned revenues. The deferred inflow of resources included in the balance sheet is unavailable revenues. The deferred outflow of resources includes a deferred charge on refunding, OPEB-related items, and pension-related items. Notably, the reporting is consistent with the modified accrual basis of accounting as the balance sheet only contains the current financial resources measurements making it easy to determine the financial positions of the funds.
C
The general fund and the general capital projects funds are major funds for financial reporting services. Some of the non-major funds include the Stormwater Fund, Commercial Transportation Tax Fund, the Legacy for Fairfax Fund, and Old Town Fairfax Fund. The fund balance categories used are non-spendable, restricted, assigned, and unassigned.
D
The proprietary funds included in the report are the wastewater fund, transportation fund, and water utility fund. In the financial statement, it is evident that the funds use accrual accounting as the revenue is recognized once they are earned and expenses are reported when liabilities are incurred.
E
The two types of fiduciary funds included in the annual reports are the city supplemental pension trust fund and the City Firefighters, Policemen, and Policewomen Pension Trust Fund. Both of them are pension trust funds and the statement indicates the modified accrual basis of accounting.
F
The accounting policies that are discussed in the first notes are the ...