Chapter 9: Financial Reporting of State and Local Governments

These flashcards cover key vocabulary and concepts related to the financial reporting of state and local governments, as discussed in the lecture.

GASB

Governmental Accounting Standards Board, the organization that establishes accounting standards for state and local governments.

Financial Reporting Entity

The primary government and organizations for which the primary government is financially accountable.

Component Unit

A legally separate organization for which the elected officials of the primary government are financially accountable.

Blended Presentation

When a component unit’s financial data are reported with the same fund types and activities of the primary government.

Discrete Presentation

When financial data of the component unit are reported in separate columns, distinct from the financial data of the primary government.

Comprehensive Annual Financial Report (CAFR)

The government’s official annual report prepared and published as a matter of public record, including minimum requirements of general purpose external financial reporting.

Management’s Discussion and Analysis (MD&A)

A narrative explanation provided in a CAFR that gives contextual information about the financial statements.

Interim Reports

Reports prepared at times other than year-end, useful for government administrators and legislative branches.

Financial Trends Information

Shows how a government’s financial position has changed over time, focusing on trends in fund balances and net position.

Revenue Capacity Information

Shows the government’s ability to generate its own revenues, including information on revenue base and revenue rates.

Operating Information

Provides context for understanding the government’s operations and resources, including the number of employees and capital asset information.