Week 4 Assignment Paz

School: Kennesaw State University - Course: ACC 410 - Subject: Accounting

FINANCIAL REPORTING REVIEW OF LOCAL GOVERNMENT2 Introduction Every state, locality, and municipality is required to create a CAFR to explain how they spent allocated funds and incurred expenses. CAFR stands for Comprehensive Annual Financial Report, and it is a collection of governmental financial statements that must adhere to the GASB's accounting standards (Granof, Khumawala, Smith, & Calabrese, 2016). To eliminate misunderstanding in government funding reports, the complexity of the CAFR should be standardized. The CAFR is divided into three sections: introduction, financial, and statistics. It also incorporates financial data from business authorities and financing accounting (Granof, Khumawala, Smith, & Calabrese, 2016). The article evaluates the city of Austin's CAFR, which includes the manner of publishing, audit and budget information, and the kind of audit report, as well as the presence or absence of an internal audit role. In three categories, compare and contrast the CAFRs: Publication method. The City of Austin developed a comprehensive set of Financial Policies to guarantee that the City's financial resources are handled prudently and to provide the groundwork for long-term financial viability. The budget process includes an annual evaluation of compliance with these standards. The review's policies and findings are included in the Approved Budget document. The publication follows the GASB criteria and is divided into three parts. The CAFR is introduced in the opening portion with a message from the county and municipal leaders, respectively. However, there are only slight changes in the financial statement's presentation. Austin's financial statements are given in an easy-to-understand format. There is no breakdown of funding sources or how they are used.