A. Write a 350-word summary in which you: Describe Popular Financial Reports as a tool for government transparency, accountability and citizen engagement.Include an analysis of (1) the use of different types of PFRs by governments; (2) the motivations for using PFRs; (3) the government wide approach to developing PFRs; and (4) challenges of using PFRs.B. Answer the questions on the attached document with very short answers.
Answer the following questions with very short answers:
1. What are the characteristics of a proprietary fund? How do internal service funds and
enterprise funds differ?
2. Explain the reporting requirements for internal service funds and enterprise funds.
Internal service funds and enterprise funds are both proprietary funds, so why do their
reporting requirements differ?
3. A member of the city commission insists that the city’s internal service fund prepare and
submit a budget for commission approval. The commissioner argues that it is only
through the budget that the commissioners will be able to ensure control over the internal
service fund. Do you agree or disagree with the commissioner’s argument? Explain your
answer.
4. Although proprietary funds are often compared to for-profit businesses, there are several
differences between accounting for proprietary funds and accounting for a for-profit
organization. Identify and discuss at least one difference for each of the fund financial
statements.
5. What is the purpose of the Restricted Assets section of an enterprise fund statement of
fund net position? Provide examples of items that might be reported in the Restricted
Assets section.
6. What are the three components of net position provided by Governmental Accounting
Standards Board (GASB)? Describe how a government assigns amounts to the
classifications.
7. What are regulatory accounting principles and how do they relate to enterprise fund
accounting?
8. Explain the distinction(s) between agency funds and trust funds. What financial
statements are prepared for each?
9. Identify the different types of trust funds and explain the purpose of each type.
10. Describe the basic activities conducted by a tax agency fund. What are some of the issues
that make tax agency fund accounting complex?
11. Explain how the financial reporting of fiduciary funds differs from that of governmental
funds.
12. What is a “pass-through” agency fund and under what conditions is it appropriate to use
such a fund?
13. How does the accounting for an internal investment pool differ from the accounting for
an external investment pool?
14. How does total pension liability differ from net pension liability?
15. A city manager was overheard saying, “Since we don’t release them to the public, I don’t
see any value in taking the time to prepare interim reports.” Explain why you agree or
disagree with this statement.
16. What is a financial reporting entity and what organizations generally make up a financial
reporting entity?
17. Assuming that a government has governmental, proprietary, and fiduciary funds, identify
the nine financial statements that must be prepared for the Comprehensive Annual
Financial Report (CAFR).