'Comprehensive Annual Financial Report Briefing\r'

' wide yearbook mo clamsary Report Briefing pluck The metropolis of Detroit, founded in 1701, and incorporated in 1806, is in Wayne County, State of Michigan. Detroit is on an international waterway, which connects by mover of the St. Lawrence Seaway to seaports around the world. Existing as the largest city in the State of Michigan, Detroit is notorious for its tradition in automotive and is a colloquialism for the automobile application in the United States. Detroit is similarly know for its prevalent music legacies, which residents celebrate in several beaten(prenominal) nicknames, Motor City, Motown or simply the â€Å"D. In a city, whose population is likely at 951,270, Detroit is also known for its liquor distribution during the prohibition in 1920. individually year, establishment entities, such(prenominal) as the City of Detroit is indispensable to compile a comprehensive annual monetary overlay, or CAFR, complying with the governmental method of accountin g standards board accounting requirements. Comprehensive annual financial write ups be detailed presentations of an entities financial condition, account on annual activities and balances.This authorised put forwardment also includes a letter of transmittal, animal trainer’s dealion and abridgment, and has four sections: Introduction, financial section, statistical section, and compliance section. This briefing exit review and discuss the comparison of governmental accounting and profit financial accounting. This briefing will also detail how to reckon governmental report and reporting entities. Last, this briefing will awayline management interchange and analysis reports for the state of Michigan. Comprehensive one-year fiscal Report Briefing similarity of chronicle Practices Business reports, to include financial reports often rear to the toll nonprofit or not-for-profit, profit, and for-profit to describe an entity classification. These terms be signifi cant as they determine the types of accounting transaction and activities covering a period. Although accounting practices, and activities atomic number 18 most associated between operations of a personal line of credit enterprise; those of profit, accounting is not restricted to businesses. It also deals with non-business operations.Government or nonprofit entities accounting, being a make out division of accounting, has various accounting practices of which they operate; however, dumbfound the same principles. These practices and principles ar different from those of for-profit entities (businesses) such that for-profit entities nidus on wealth creation, where governmental entities are budget-driven. reckons’ are appoint fiscal documents and is the culmination of the political process. For example, correspond to â€Å"Comprehensive Annual Financial Report †City Of Detroit” (2010), the City’s 2010 General Fund Budget is $1. 8 billion.The city also reports that this budget is nullify of additions or material changes to existing taxes (Budget to Actual Comparison†General Fund). In a similar manner, businesses curse on annual reports to provide shareholders and other enkindle parties pertinent information about the entities activities and financial performance. cyberspace margins prove the financial health of a business, although budgets are internal communications to measure results. The key deviance in the reporting for the two classifications is that the budget (nonprofit) is a forward communication, while the annual report (profit) is a historic communication.Government inform and Reporting Entity Government reporting entities are do up of organizations of which the government controls. The key point to consider about government reporting agencies is to ascertain which public sector the government controls. Reporting entities are the assets, liabilities, revenues, expenses, and cash flow of a board, department, agency, and investment company included in a government financial statement summary. Government entities are often made up of additional nonprofit organization, and for-profit organizations called piece units.These units are court-ordered and separate entities where the state is accountable. Exclusion of component units alters the state’s financial statement in such a way that it would present take or incomplete (â€Å"Office of Financial charge”, 2012). Just for clarity, according to â€Å"Governmental Accounting Standards table” (2013), the financial reporting entity consists of (a) the basal government; (b) organizations for which the primary government is financially accountable; and (c) other organizations for which the temperament and significance of their elationship with the primary government are such that exclusion would cause the reporting entitys financial statements to be misleading or incomplete (Summary of story no 14 The Financial Reporti ng Entity (Issued 6/91)). With that in mind, governments are likely to construct separate legal entities to perform governmental duties. For example, the City of Detroit has nine de jure separated organizations, which make up their component units.For instance, the stinting Development Corporation, and Museum of African American History are two of the nine component units included in the government reporting Comprehensive Annual Financial Report †City of Detroit. (2010). Considering reporting entities, the Statement of Financial Accounting Standards No. 94 best defines and prescribes the recommended treatment. For example, the Statement of Financial Accounting Standards prescribes that consolidated reporting is the scarce appropriate method to report. charge Discussion & outline (MD)This section of the comprehensive annual financial report is required to summarize an organization’s annual results, providing a managerial opinion on the financials, addressing discu ssion of risks, comparisons to previous years, and a breakdown of financials according to sections and locations. Management discussion and analysis contains forward-looking discussion pay close attention to uncertainties and the manager’s detection of opportunities and risks. The manager also highlights factors faced that are out of his or her control.For example, the comprehensive annual financial report: City of Detroit includes in its management discussion and analysis the financial position of the city, with the overview of annual activities ending June thirtieth 2010. The financial highlights include the government’s net asset totals with explanation of increases or decreases Comprehensive Annual Financial Report †City of Detroit. (2010). Reference(s): Comprehensive Annual Financial Report †City of Detroit. (2010). Retrieved from http://www. detroitmi. gov/… /CAFR/2010%20CAFR%20draft%20122010%.. Copley, P. A. , & Engstrom, J. H. 2011). Esse ntials of accounting for governmental and not-for-profit organizations (10th ed. ). bran-new York, NY: McGraw-Hill. Governmental Accounting Standards Board. (2013). Retrieved from http://www. gasb. org/ Granof, M. H. , & Wardlow, P. S. (2011). Core concepts of government and not-for-profit accounting (2nd ed. ). New York, NY: Wiley & Sons. Office of Financial Management. (2012). Retrieved from http://www. ofm. wa. gov/ insurance policy/glossary. asp Wilson, E. R. , Kattellus, S. C. , & Reck, J. L. (2010). Accounting for governmental & nonprofit entities (15th ed. ). New York, NY: McGraw-Hill.\r\n'