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Audits of State and Local Governments
book

Audits of State and Local Governments

by Jack F. Georger
April 2018
Intermediate to advanced content levelIntermediate to advanced
272 pages
7h 7m
English
Wiley
Content preview from Audits of State and Local Governments

Chapter 4 FUND FINANCIAL STATEMENTS AND THE REPORTING UNIT

LEARNING OBJECTIVES

After completing this chapter, you should be able to do the following:

  • Identify what must be included in the management discussion and analysis (MD&A) and required supplementary information (RSI).
  • Identify major funds for reporting purposes.
  • Recognize format and requirements of funds' financial statements.
  • Identify the reporting entity of a government.

What a Government Reports

Governments are required to include certain minimum information in their external financial reports. The requirements are designed to meet the basic needs of a broad group of external users. A government's general purpose external financial statements contain, at a minimum, the following items: management's discussion and analysis, basic financial statements, and required supplementary information.

Fund Financial Statements

The financial statements for governments include both fund-based and government-wide statements. GAAP requires that the general purpose external financial statements contain at a minimum, the following:

  • Management discussion and analysis (MD&A)
  • Basic Financial Statements

     Government-Wide Financial Statements

     Fund Financial Statements

     Notes to the Financial Statements

  • Required Supplementary Information (RSI) (other than MD&A)

The relationship of the different elements that are required for general purpose financial statements can be seen in the following chart. This chapter ...

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Publisher Resources

ISBN: 9781119508090Purchase book