Comprehensive Annual Financial Report Briefing Essay

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Comprehensive Annual Financial Report Briefing

Not- For- Profit &Government Accounting

Comprehensive Annual Financial Report Briefing

The Village of Tinley Park, is located in Cook County, Illinois, was entered in 1892 under the provisions of the constitution and general statutes of Illinois. The Village operates under government of the trustee-village and provides many services including planning, public safety, zoning, roads, and general administrative services (Tinley Park, 2009). The accounting policies of Tinley Park comport to the generally accepted accounting principle as applicable to governments. The Governmental Accounting Standards Board (GASB) is the legal body for enacting governmental accounting and
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1) Governmental Funds –Used to provide services where the expenditures aren't matched with the fees that are charged for the provided services.
2) Proprietary Funds - Used to account for "business-type" activities, where the collected fees from customers are used to account for the provided services (i.e. trash collection).
3) Fiduciary Funds - Used to account for third-party funds. These funds are not reported in the government-wide financial statements (Elmerraji, 2009).
Governmental Reporting Every year, the village of Tinley Park like every other government organizations produces comprehensive annual financial reports (CAFR). These reports present the financial statements of the village, besides an important management analysis tools called the Management Decision and Analysis (MD&A) and the note to the financial statements. CAFRs are prepared in accordance with GAAP, and Governmental Accounting Standards Board (GASB) (Elmerraji, 2009). CAFRs include government-wide financial statements that show the village financial position as a whole, and its significant funds financial information. The Village uses the modified accrual accounting that recognizes revenue when it is available and measurable, not when it is earned (as for- profit organization does). Expenditures are reported when the related liability is incurred (Wikipedia, 2009). The CAFRs also, include reconciliations that explain the process of switching from cash-basis
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