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The CAFR Statistical Section

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Title: The CAFR Statistical Section


1
The CAFR Statistical Section
  • Presented for the
  • Florida GFOA
  • Presented by
  • Paul E. Glick
  • Glick Consulting Group

2
Background and Introduction
  • Session 1

3
Seminar Objectives
  • Understand The Requirements And Options Provided
    Within GASBS 44
  • Understand The Guidance Provided In The GASBS 44
    Implementation Guide
  • Understand How To Jazz Up Your CAFRs
    Statistical Section

4
A Question
  • There Are Approximately 302 Million People In The
    United States.
  • Of The 302 Million, One Famous Author Wrote A
    Book in the 1980s About The Statistical Section
    Of A CAFR, Who Was It?
  • Who Read The Book?
  • Who Does Not Have A Life?

5
Agenda
  • 1. Introduction and Overview
  •  
  • 2. Financial Trends
  • 3. Revenue Capacity
  •  
  • 4. Debt Capacity
  • 5. Demographic and Economic Information
  • 6. Operating Information
  • 7. Miscellaneous Information (Optional)

6
A Good Opportunity
  • If You Brought Your CAFR With You (Is It In The
    Trunk of Your CAR, Follow Along In Your
    Statistical Section As I Discuss Each Table
  • For The Currently Required Tables, Compare Your
    Table With The Information I Am Discussing And
    Not Any Changes That You Need To Make
  • Also, Please Feel Free To Ask Questions As We
    Have Time Allocated Within The Seminar To Do.
  • It Is A Good Opportunity To Discuss Each Table
    Requirements In Detail

7
Why GASBS 44?
  • NCGA Provided Little Guidance Regarding The
    Contents Of Each Required Table, Resulting In
    Much Inconsistency
  • The Statistical Section Requirements Were
    Oriented To General Purpose Local Governments
  • The Requirements For The Statistical Section Did
    Not Encompass The New Information That
    Governments Are Presenting As A Result Of GASBS 34

8
Why GASBS 44?
  • Addresses The Comparability Problems
  • Adding Information From The New Financial
    Reporting Model

9
Statistical Section Objectives
  • To Provide Financial Statement Users With
    Additional Historical Perspective, Context, And
    Detail To Assist In Using The Information In The
    Financial Statements, Notes To Financial
    Statements, And Required Supplementary
    Information To Understand And Assess A
    Governments Economic Condition
  • These Objectives Are Important!

10
The Standards
  • The Statement Illustrates 50 Tables (Dont Worry
    Though)
  • Statistical Section Divider Page Indicating The
    Five Required Sections With Brief Explanations
  • Financial Trends
  • Revenue Capacity
  • Debt Capacity
  • Economic and Demographic Information
  • Operating Information

11
GASBS 44 Implementation Guide
  • The GASB Has Issued An Implementation Guide
    Covering GASBS 44 And It Includes Approximately
    120 Questions And Specific Table Examples For The
    Following Types Of Governments
  • Cities
  • Counties
  • States
  • School Districts
  • Universities
  • Airport Authorities
  • Water and Sewer Authorities
  • Retirement Systems
  • Library Districts

12
Restating Data
  • New Tables Where You Might Want To Include
    Retroactive Data Are
  • Governmental Funds Revenues, Expenditures and
    Fund Balances
  • Fund Balances and Other Financing Sources (Uses)
  • Optional Specific Tax Revenue Schedule
  • Principal Rate Payers
  • Ratios of Total Outstanding Debt by Type
  • Government Employees by Function

13
Retroactive Reporting
  • For Information That GASBS 44 Requires, But Which
    Was Not Previously Requiredsuch As Government
    Fund Balances Or Changes In Net Assets A
    Government Must Present The Information
    Prospectively
  • However, Governments Are Encouraged, But Not
    Required To Present A Full Ten Years Of
    Information At The Time The Statement Is
    Implemented

14
Retroactive Reporting
  • If A Government Does Not Have Information For The
    Full Ten Years, It Is Encouraged To Report As
    Many Years As It Has Available
  • For Government-wide Information And Other
    Information Resulting From The Implementation Of
    GASBS 34, Governments Are Encouraged, But Not
    Required, To Report Retrospectively To The Year
    Of Implementation

15
Statistical Section Divider Page
  • Highlight the Five Sections
  • Note Unaudited Data
  • Add Index With Table Numbers
  • Discuss Non-applicable Tables
  • Sources of Data

16
Statistical Section Divider Page
  • See Handout 1

17
Component Unit Information
  • Generally, The Information Provided In A
    Statistical Section Should Focus On The Primary
    Government, Rather Than On The Financial
    Reporting Entity.
  • However, In The Context Of Assessing The Economic
    Condition Of The Primary Government, It May Be
    Advantageous To Understand Certain Information
    About Individual Discretely Presented Component
    Units.

18
Component Unit Information
  • Determining Which Discretely Presented Component
    Unit Disclosures Are Essential To Fair
    Presentation Is A Matter Of Professional Judgment
    And Should Be Done On A Component
    Unitbycomponent Unit Basis

19
Component Unit Information
  • If A Government Determines That It Should Include
    Information About A Discretely Presented
    Component Unit In One Of Its Statistical Section
    Schedules, It Need Not Include Component Unit In
    All Of Its Schedules

20
Cross-referencing Tables
  • Because Of The Large Amount Of Financial Data
    Presented, Sometimes A Cross-referencing Of
    Tables Is Required.
  • This Is Particularly True With The GASBS 34
    Financial Trend Information

21
Narratives
  • The GASB Suggests
  • In General, A Government Should Not Presume That
    The Users Of Its Financial Report Are Intimately
    Familiar With The Causes Of The Governments
    Financial Results In Any Given Year Or With The
    Specific Requirements Of The Statistical Section
    Standards

22
Narrative Explanations
  • Governments Should Use Narrative Explanations To
    Enhance The Understandability Of The Statistical
    Sections Quantitative Information. Narrative
    Explanations In The Statistical Section Should Be
    Primarily Analytical In Nature, Although For Some
    Data Explanations May Be Educational As Well.

23
Narrative Explanations
  • Professional Judgment Should Be Used In Deciding
    If It Is Appropriate To Present Narrative
    Explanations And, If Appropriate, What Type Of
    Explanation And Its Extent.

24
Types of Narrative Explanations
  • Explanations Of The Objectives Of Statistical
    Section Information In General And The Five
    Categories Of Statistical Section Information, As
    Well As Individual Schedules Of Information, If
    Appropriate.
  • Explanations Of Basic Concepts That May Be
    Unfamiliar To The Users Of The Financial Report
    (GASBS 34 Model).

25
Types of Narrative Explanations
  • Explanations That Identify Relationships Among
    The Information In Various Statistical Section
    Schedules, As Well As Between The Statistical
    Section And Information In Other Sections Of The
    Financial Report.
  • Explanations Of Trends And Anomalous Data That
    The Users Of The Financial Report Would Not
    Otherwise Understand.

26
Types of Narrative Explanations
  • Such Trends And Data May Result From Infrequent
    Incidents, Changes In Underlying Assumptions Or
    Accounting Methods, Organizational Restructuring,
    Major Policy Changes, Or Other Events.
  • In General, A Government Should Not Presume That
    The Users Of Its Financial Report Are Intimately
    Familiar With The Causes Of The Governments
    Financial Results In Any Given Year Or With The
    Specific Requirements Of The Statistical Section
    Standards.

27
Types of Narrative Explanations
  • Governments Should Look For Opportunities To
    Present Brief Narratives That
  • Make It Easier For Readers To Find The
    Information They Need In The Statistical Section
    And To Use It Meaningfully
  • Let The User Know About Significant Changes In
    The Nature Of The Information In The Schedules

28
Types of Narrative Explanations
  • Governments Should Look For Opportunities To
    Present Brief Narratives That
  • Explain Significant Occurrences That Affect
    The Information, Which A User Would Not Otherwise
    Be Aware Of

29
Types of Narrative Explanations
  • Governments Should Look For Opportunities To
    Present Brief Narratives That
  • Connect The Contextual Information Of The
    Statistical Section With The Basic Financial
    Statements, Notes, And Required Supplementary
    Information It Is Intended To Amplify
  • Help The Users To Utilize The Statistical
    Section Information To Understand And Assess A
    Governments Economic Condition.

30
Reference to Current MDA Explanations
  • In Lieu Of A Narrative Explanation, Is A
    Reference To The MDA Adequate?
  • What About In Subsequent Years?

31
Level of Detail Presented
  • The Level Of Detail Presented In GASBS 44 Is The
    Minimum Disclosure Requirement
  • Governments May Provide Additional Detail, Either
    With The Required Information Or In A Separate
    Schedule, If They Believe That It Helps To
    Achieve The Objectives Set Forth In GASBS 44 And
    That It Would Be Useful To The Users Of The
    Financial Report.

32
Use of Graphics
  • Graphics Can Be A Valuable Complement To Tabular
    Information, Highlighting Important Information
    And Trends For The User Of The Financial Report.
  • However, The Requirements Of GASBS 44 Can Only Be
    Met With The Presentation Of Tabular Information.

33
Use of Graphics
  • Graphics Can Supplement, But Not Supplant the
    Required Statistical Information
  • Any Ten Year Data Can Be Presented In A Graphic
    Format

34
Pie Charts
  • Compares Segments And Illustrates Their
    Relationship To The Whole
  • Normally Limited To One Year Of Data
  • Current Year Revenue
  • Current Year Expenditures

35
Column Charts
  • Purpose Is To Depict Numerical Values Of A Given
    Item Overtime
  • Simple
  • Easy To Read
  • Dollars Presented Normally Vertically

36
Column Charts
  • Consider Presenting
  • Total Revenues
  • Total Property Taxes
  • Total Expenditures
  • Total Fund Balance
  • Total Debt
  • Debt Per Capita

37
Bar Graph
  • Similar To A Column Chart Except The Bars Are
    Presented Horizontally Rather Than Vertically
  • Year Presented Vertically And Dollars Presented
    Horizontally

38
Bar Graph
  • Similar To A Column Chart Except The Bars Are
    Presented Horizontally Rather Than Vertically
  • Year Presented Vertically And Dollars Presented
    Horizontally

39
Bar Graph
  • Examples Might Include
  • Expenditures Per Capita
  • Revenue Per Capita
  • Debt Per Capita

40
Connected Column Chart
  • Percentages Presented Vertically and Source
    Presented Horizontally
  • Examples Include
  • Revenues Local, State and Federal

41
Sub-divided Column Chart
  • This Chart Illustrates The Component Parts To The
    Whole
  • Include Dollars Amounts On Each Segment
  • Examples
  • Revenues
  • Expenditures
  • Debt By Type
  • Debt By Source

42
Line Chart
  • A Set Of Points Connected By A Line
  • Dollars Amounts Vertically And Years Horizontally
  • Might Include
  • Fund Balances
  • Total Revenues
  • Total Expenditures
  • Compare Revenues Or Expenditures With Actual
    Historical Dollars Versus Constant Dollars

43
Creative Graphics
  • Property Taxes By Taxing Body In A Simulated
    House
  • Population Growth Incorporated And
    Unincorporated (Line Graph)
  • Number Of Employees Per 1,000 Population
  • Cost Per Vehicle Hour (Transit System)
  • Utility Rates

44
Percentage Changes and Percentage Distributions
  • Percentage Change And Percentage Distribution
    Ratios Are Staples Of Financial Analysis And May
    Help To Make The Statistical Section Schedules
    More Understandable To The Users.
  • Governments May Also Find That Presenting These
    Ratios With The Required Statistical Section
    Information Is Helpful In Achieving The
    Objectives.

45
Comparable Information
  • Governments May Include Comparisons Of The
    Information Required By GASBS 44 With Other
    Governments, If They Believe Doing So Helps To
    Achieve The Objectives Of GASBS 44.
  • Comparisons With Peer Entities Can Add Contextual
    Meaning That Cannot Be Obtained When Looking At
    The Information Of A Single Government.
    Comparative Information Can Help Users To Make
    Judgments About The Strength Of A Particular
    Governments Economic Condition In Relation To
    The Economic Condition Of Similar Entities

46
Comparable Information
  • What Could We Compare?
  • School Districts Can Compare Cost Per Pupil
  • General Governments Could Compare Number Of
    Employees Per 1,000 Population
  • Expenditures Per 1,000 Population
  • Revenues Per 1,000 Population
  • Debt Per Capita
  • Any Other Thoughts?

47
General Formatting Conventions
  • Present The Data Vertically And The Years
    Horizontally
  • Present The Data Horizontally And The Years
    Vertically
  • Earliest Year Presented First or Latest Year
    Presented First
  • Rounding To The Nearest 1,000

48
General Formatting Conventions
  • Add The Phrase Continued On All Pages Affected
  • Add The Phrase Unaudited To The Table Caption
  • Portrait Or Landscape

49
General Formatting Conventions
  • Last Ten Calendar Years Versus Last Ten Fiscal
    Years
  • Changes in Fiscal Year Ends
  • Changes in Revenue Sources and/or Expenditure
    Functions

50
Data Sources
  • Governments Should Identify The Sources Of All
    Information That Does Not Appear In The Basic
    Financial Statements, Notes To Basic Financial
    Statements, Or Required Supplementary
    Information.
  • Governments Should Also Explain Methodologies
    Used To Produce Information, As Well As Any
    Significant Assumptions Made.

51
Financial Trends
  • Session 2

52
Session No. 2 Objectives
  • Financial Trends Information Is Intended To
    Assist Users In Understanding And Assessing How A
    Governments Financial Position Has Changed Over
    Time

53
Requirements
  • Changes in Fund Balances Governmental Funds
  • Changes in Net Assets Government-Wide
  • Schedule of Governmental Funds Fund Balances
  • Schedule of G-W Net Assets

54
Organization of This Section
  • Present Government-wide Data Separately From
    Governmental Fund Data or
  • Present Operating Statement Data Separately From
    Net Asset/Equity Information

55
Table Captions
  • Indicate The Basis Of Accounting Used For Data
    Reporting In The Table Caption

56
Changes in Fund Structure
  • Occasionally, A Government May Significantly
    Revise Its Governmental Funds Structure, Thereby
    Creating Inconsistent Information In The Trends
    Prior To And Following The Revision.

57
Changes in Fund Structure
  • To The Extent That The Revision Resulted In
    Functions Being Shifted Between The General Fund
    And Any Of The Other Governmental Funds, The
    Government Could Restate The Information About
    Fund Balance Prior To The Change In Order To Be
    Consistent With The Information After The Change.
  • However, If Restatement Is Not Feasible, At A
    Minimum The Government Should Clearly Note The
    Fact That The Information Before And After The
    Change Is Not Comparable And Should Explain The
    Nature Of The Difference

58
1 - Changes in Fund Balances Governmental
Funds - Requirements
  • Includes All Governmental Funds
  • Data Must Be Presented On A GAAP Basis Modified
    Accrual Basis
  • The Budgetary Basis Data Should Not Be Presented

59
1 - Changes in Fund Balances Governmental
Funds - Requirements
  • Principal And Interest Expenditures Be Shown
    Independently, And
  • A Line Be Added Showing Debt Service As A
    Percentage Of Total Non-capital Expenditures.
  • Be Sure to Deduct All Capital Expenditures
    (Including Amounts Charged Directly to Functions
    See OS Reconciliation)

60
Debt Service Ratio
  • Generally, Include Only Principal And Interest
    When Calculating This Ratio
  • If You Include Fiscal Charges, Footnote That Fact
    On The Face Of The Table

61
Capital Expenditure Ratio
  • In A Supplemental Table A Government May Present
    A Ratio Of Capital-outlay-to-total-expenditures
    Or Capital-expenditures-to-total-expenditures In
    This Table, If The Government Believes It Would
    Be Meaningful To The Users Of Its Financial
    Report And Would Help To Achieve The Objectives
    Of Governmental Funds Information And Financial
    Trends Information In General.

62
One or More Tables For This Information
  • Generally This Data Is Presented In A Single
    Table
  • However, This Data Could Be Presented Into Three
    Tables
  • Revenues
  • Expenditures
  • Summary of Net Changes

63
One or More Tables For This Information
  • Separate Tables Provides Space for Percentages
    and Narratives

64
Requirements - Changes in Fund Balances
Governmental Funds
  • Includes
  • Revenues By Source
  • Expenditures By Function
  • Excess (Deficiency) (Not Required)
  • Other Financing Sources (Uses)
  • Net Change In Fund Balances
  • Fund Balance Reconciliation (Not Required)

65
Changes in Fund Balances Governmental Funds
  • The Level Of Detail Presented In This Table Must
    Be Consistent With The Level That GASBS 34
    Requires On The Governmental Fund Type Operating
    Statement.

66
Table Example
  • Changes in Fund Balances Governmental Funds A
    Single Page (Handout Page 2)
  • Changes in Fund Balances Governmental Funds
    Multiple Pages (Handout Pages 3-6)

67
Optional Tax Table
  • A Single Amount Presented For Tax Revenue In The
    Required Table Is Not Very Meaningful
  • The Presentation Of A Table Presenting Individual
    Tax Revenue By Type Of Tax Is Suggested (Handout
    Page 7 - 9)

68
Optional Intergovernmental Revenue Table
  • Some Governments Present A Separate Table
    Presenting Intergovernmental Revenue, Classified
    As
  • Local
  • State
  • Federal

69
Expenses by Object
  • It Is Not Acceptable To Present Expenses By
    Objectsuch As Salaries, Fringe Benefits,
    Supplies, Contractual Services, And So Oninstead
    Of By Function, Program, Or Identifiable Activity
  • Expenditures By Object May Be A Useful Complement
    To The Presentation Of Expenses By Function Or
    Program.
  • However, It Is Not An Acceptable Substitute For
    The Required Functional, Programmatic, Or
    Identifiable Activity Categorization Of Expenses

70
Jazz It Up!?
  • Add Percentage Of Totals For Both Revenues And
    Expenditures
  • Add Percentage Change Annually Or Over The 10
    Years
  • Present Separate Table With Just Percentages
  • Present Revenues And Expenditures In Constant
    Dollars

71
Governments Engaged In Only Business-type
Activities
  • Present Revenues By Major Source And Should
    Distinguish Between Operating And Nonoperating
    Revenues And Expenses In The Statistical Section
    Of Their Separately Issued Financial Reports

72
Business-Type Activities
  • Governments Engaged Only In Business-type
    Activities Are Required To Present Information
    About Changes In Net Assets Other Than Operating
    And Nonoperating Revenues And Expenses
  • The Changes In Net Assets Information Should Lead
    To A Total Change In Net Assets Amount For Each
    Of The Last Ten Years.
  • Therefore, Other Changes In Net Assetssuch As
    Capital Contributions And Additions To Permanent
    Endowmentsshould Also Be Presented, Not Just
    Revenues And Expenses.

73
Enterprise Fund
  • See Handouts Pages 10 - 13

74
2 - Government-wide Statement Of Activities
Requirements
  • Expenses By Function/Program,
  • Program Revenues By Function/Program,
  • Net (Expense)/Revenue By Function/Program, And
  • General Revenues By Source

75
Program Revenues
  • The Basic Requirement Is To Present Program
    Revenues By Categorytotal Charges For Services,
    Total Operating Grants And Contributions, And
    Total Capital Grants And Contributions.
  • In Addition, The Most Significant Individual
    Charges For Services Should Be Presented By
    Function, Program, Or Identifiable Activity.
  • Governments May Present The Other Charges For
    Services Or The Grants And Contributions By
    Function, Program, Or Identifiable Activity, But
    They Are Not Required To Do So.

76
Changes in Net Assets
  • The Changes In Net Assets Information May Be
    Presented In One Or More Tables
  • As Long As The Basic Information Required By
    GASBS 44 Is Presented, Governments Have
    Considerable Leeway In Deciding How To Present It
  • A Government May Present All Of The Changes In
    Net Assets Information In A Single Schedule,
    Similar To The Way The Information Is Presented
    In The Financial Statements

77
Changes in Net Assets
  • See Handout Pages 14 - 17

78
3 - Schedule Of Governmental Funds Fund
Balances
  • Presentation Of Fund Balances For The General
    Fund And All Other Government Funds Aggregated by
    Fund Type
  • It Also Distinguishes Between Reserved And
    Unreserved Fund Balances
  • Unreserved Presented By Fund Type

79
Reserved Fund Balance
  • Paragraph 12a Requires The Presentation Of Total
    Reserved Fund Balance.
  • Governments May Present Reserved Fund Balance By
    Purpose If They Believe It Would Be Meaningful To
    The Users Of Their Financial Reports And Help To
    Achieve The Objectives Of Governmental Funds
    Information And Financial Trends Information In
    General.

80
Designations
  • Governments Are Not Required To Show Designations
    In The Schedule Of Fund Balances.
  • Governments May Present Designations Of
    Unreserved Fund Balance If They Believe It Would
    Be Meaningful To The Users Of Their Financial
    Reports And Help To Achieve The Objectives Of
    Governmental Funds Information And Financial
    Trends Information In General.

81
Individual Funds Fund Balances
  • Paragraph 12a Requires That Fund Balance
    Information Be Presented For The General Fund And
    For The Sum Of All Other Governmental Funds.
  • Governments May Present Fund Balance Information
    For Any Major Or Nonmajor Fund Individually If
    They Believe It Would Be Meaningful To The Users
    Of Their Financial Reports And Help To Achieve
    The Objectives Of Governmental Funds Information
    And Financial Trends Information In General.

82
Fund Balances
  • See Handout Page 18

83
4 - Schedule Of Government-wide Net Assets
  • Net Assets In Their Three Categories, And
    Separately For Governmental And Business-type
    Activities.
  • See Handouts Page 19 - 20

84
A
85
Net Assets By Category
86
Restricted Net Assets
  • Restricted Net Assets May Be Reported By Major
    Category, As Required By GASBS 34 For The
    Government-wide And Proprietary Funds Statements
    Of Net Assets
  • A Government May Do So Voluntarily, But The Basic
    Requirement Is To Report Total Restricted Net
    Assets

87
Balance Sheet/Statement of Net Asset Information?
  • Should We Include Any of This Information?
  • How About Liquidity Ratios?
  • How About Current Ratios?

88
Revenue Capacity
  • Session 3

89
Session No. 3 Objectives
  • Revenue Capacity Information Is Intended To
    Assist Users In Understanding And Assessing The
    Factors Affecting A Governments Ability To
    Generate Its Own-source Revenues

90
Requirements
  • To Meet The Objectives Of Providing Revenue
    Capacity Information, Governments Should Present,
    At A Minimum, Information About Three Aspects Of
    Their Most Significant Own-source Revenue In
    Statistical Section Tables
  • Revenue Base
  • Revenue Rates
  • Principal Revenue Payers

91
Own-Source Revenue
  • GASBS 44 Defines Own-source Revenues As Revenues
    That Are Generated By A Government Itself, Such
    As Tax Revenues And Water And Sewer Charges.
  • Intergovernmental Aid And Shared Revenues, On The
    Other Hand, Are Not Own-source Revenues.

92
Multiple Revenue Sources
  • A Government May Present Revenue Capacity
    Information About More Than One Of Its Own-source
    Revenues
  • In Addition To Its Most Significant Own-source
    Revenue, A Government May Present Revenue
    Capacity Information About As Many Of Its Other
    Own-source Revenues As It Believes Will Help To
    Meet The Objectives Of Revenue Capacity
    Information.

93
Multiple Revenue Sources
  • For Each Own-source Revenue It Chooses To Report,
    However, A Government Should Present The Full
    Complement Of SchedulesRevenue Base, Revenue
    Rates, Principal Payers, And Property Tax Levies
    And Collections (If Applicable).

94
Two Own-source Revenues
  • Governments Are Required To Present Revenue
    Capacity Information Only For One Revenue
    Sourcetheir Most Significant Own-source Revenue.
  • However, A Government With Two Own-source
    Revenues That Produce Similar Amounts Of
    Resources Should Consider Presenting Schedules
    For Both Own-source Revenues So That Consistent
    Information Is Provided.

95
Sales Taxes
  • If A Government Does Not Have A Property Tax, But
    Does Assess A Sales Tax, It Has To Present The
    Schedules Of Revenue Capacity Information
  • Under The Prior Standards For The Statistical
    Section, Governments That Did Not Have A Property
    Tax Typically Did Not Present Any Schedules Of
    Revenue Base, Rate, Or Principal Payer
    Information.

96
Sales Taxes
  • However, The Revenue Capacity Schedules Are
    Intended To Provide Information About A
    Governments Most Significant Own-source Revenue
    Or Revenues, Regardless Of Whether It Is A
    Property Tax.

97
1 Revenue Base
  • Presented By Major Component
  • Different Classes Of Real And Personal Property,
    Or Different Types Of Rate Payers

98
Property Taxes
  • Present Both The Assessed Value Of Taxable
    Property By Major Component (E.G., Residential,
    Commercial)
  • The Total Estimated Actual Value Of Taxable
    Property
  • See Handout Page 21

99
Property Taxes
  • If A Government Levies A Property Tax, But Is
    Reporting Another Revenue Source As Its Most
    Significant Own-source Revenue, It Is Not
    Required To Present A Schedule With Information
    About Property Tax Levies And Collections
  • This Information Is Required Only If A Government
    Presents Own-source Revenue Capacity Information
    About A Property Tax.

100
Schedule Of Property Tax Levies And Collections
  • Note That Property Tax Collections Are Reported
    In The Year For Which Levied, Rather Than In The
    Year Collected.
  • In Other Words, When We Receive Delinquent Taxes,
    We Need To Know To Which Year They Apply.
  • See Handout Page 22

101
Other Own-Source Revenues
  • Sales Taxes See Handout Page 23

102
Jazz It Up
  • If The Geographic Area Of A County Includes A
    Major City, A Distinction For The Assessed Value
    Which Is Located Within The Major City And That
    Which Is Located Outside The Major City Is
    Appropriate
  • If A Government Is Located Within Two Different
    Tax Assessing Districts (E.G., Counties), The
    Assessed Value Should Be Presented By Taxing
    District

103
Jazz It Up
  • A Detailed Table That Compares Exempt Property To
    Taxable Property Is A Creative Disclosure
  • Consider Including A Percentage Changes Column Is
    Appropriate

104
Jazz It Up
  • Reporting The Amount Of Annual Increases In The
    Assessed Values Is Informative
  • Some Governments Include Assessed Value And
    Estimated Fair Value In A Per Capita Amount

105
2 Revenue Rates
  • A Schedule Of Direct And Overlapping Tax Rates
  • Presented For Each Period In Which Taxes Are
    Payable

106
Direct and Overlapping Tax Rates
  • Property Taxes See Handout Page 24
  • Sales Taxes See Handout Page 25

107
3 - Principal Revenue Payers Requirements
  • For The Current Year And The Period Nine Years
    Prior, Governments Should Identify
  • The Payers Of Their Most Significant Own-source
    Revenue,
  • The Amount Of Revenue Base Attributable To Each
    Or Actual Taxes Levied On Each and,
  • The Percentage Of Each Amount Relative To The
    Total Revenue Base Or Total Taxes Levied,
    Respectively

108
3 - Principal Revenue Payers
  • The Purpose Of This Table Is To Help The Reader
    Understand Who The Major Taxpayers Are An Which
    Tax Impact Would Occur If Any Of The Major
    Taxpayers Were Removed From The Tax Base

109
Principal Revenue Payers
  • Governments Should Present The Ten Largest Payers
    In Terms Of Revenue Base Or Taxes Levied, Unless
    Fewer Are Needed To Reach 50 Percent Of The Total
    Revenue Base Or Total Taxes Levied, Respectively.

110
Top Taxpayers
  • If In The Past, A Government Has Included The Top
    Twenty-five Taxpayers In Its Schedule, It May It
    Continue To Do So
  • A Government Many Include As Many Taxpayers In
    The Schedule As It Believes Will Be Meaningful
    Without Cluttering The Schedule.

111
Top Taxpayers
  • See Handout Page 26 Property Taxes
  • See Handout Page 27 Sales Taxes

112
Enterprise Fund
  • See Handouts Page 28 - 31

113
Jazz It Up
  • Add All Other Taxpayers To Balance To The
    Total Assessed Value Of The Reporting Government
  • The Table Might Be Expanded To Include The Type
    Of Business Each Principal Taxpayer Represents
  • The Table Might Be Expanded To Include The
    Product Produced By The Business And The Number
    Of Employees

114
Jazz It Up
  • Some Governments Present The Actual Taxes Paid
    And A Percentage Of Total Taxes Paid
  • A Public Utility Might Appropriately Disclose Its
    Principal Customers And Their Annual Billings

115
Jazz It Up
  • If A Government Primarily Relies On Sales Taxes
    As A Major Revenue Source, A Schedule Of Taxable
    Sales By Type Of Business Is Appropriate

116
Debt Capacity
  • Session 4

117
Session No. 4 Objectives
  • Debt Capacity Information Is Intended To Assist
    Users In Understanding And Assessing A
    Governments Debt Burden And Its Ability To Issue
    Additional Debt.

118
Debt Capacity Requirements
  • Ratios Of Outstanding Debt (Two Tables)
  • Direct And Overlapping Debt
  • Debt Limitations
  • Pledged-revenue Coverage

119
1 - Outstanding Debt Requirements
  • Governments Should Present Each Type Of
    Outstanding Debt Individuallyfor Example,
  • General Obligation Bonds,
  • Revenue-backed Bonds,
  • Loans,
  • Certificates Of Participation,
  • Capital Leases
  • Divided Between Debt Related To Governmental
    Activities And Debt Related To Business-type
    Activities

120
1 - Debt Ratio Requirements
  • Governments Should Present An Outstanding Debt
    Ratio Calculated By Dividing Total Outstanding
    Debt By Total Personal Income
  • A Per Capita Ratio Of Total Outstanding Debt
    Should Also Be Presented

121
Personal Income
  • If Personal Income Information Is Not Available
    For A Particular Jurisdiction, A Government
    Should Use Estimated Actual Value Of Taxable
    Property Or Another Relevant Economic Base If
    Personal Income Information Is Not Obtainable

122
Examples
  • See Handout, Page 33

123
Example
  • See Handout, Page 32 - 34

124
2 - Direct and Overlapping Debt Requirements
  • Governments That Are Engaged In Governmental
    Activities Should Provide Information About
    Direct And Overlapping Debt

125
Objective of This Table
  • This Table Is Intended To Demonstrate The Total
    Tax-supported Debt Burden On The Taxpayers
    Residing Within The Governments Geographic
    Boundaries

126
Examples
  • See Handout, Page 35

127
3 - Debt Limitation Requirements
  • The Legal Debt Margin Is The Maximum Amount Of
    Debt For Which A Government Is Legally Permitted
    To Issue

128
3 - Debt Limitation Requirements
  • Provide Information About The Legal Debt Margin
    (Two Disclosures Are Required)
  • A Typical Legal Debt Margin Presentation Would
    Include
  • - Relevant Revenue Base (For Example,
    Property Value)
  • - Debt Limit Amount Governments Should Also
    Explain The Nature Of The Limitation
  • Debt Applicable To The Limit, Reserves To Be
    Deducted, If Any, And Total Net Debt Applicable
    To The Limit
  • Legal Debt Margin Amount.

129
3 - Debt Limitations
  • For The Last Ten Years, Governments Should
    Present
  • The Debt Limit Amount,
  • Total Net Debt Applicable To The Limit,
  • The Legal Debt Margin Amount,
  • And A Ratio Calculated By Dividing Either The
    Legal Debt Margin Amount Or Total Net Debt
    Applicable To The Debt Limit By The Debt Limit.

130
3 Debt Limitation Requirements
  • Also, GASBS 44 Requires That The Full Calculation
    Of The Legal Debt Margin Be Presented For The
    Most Recent Year
  • If A Government Believes That Ten Year
    Calculations Enhance The Schedules
    Understandability Or Its Usefulness And The
    Schedules Focus Remains On The Key Debt Limit
    Informationthe Limit, Net Debt Applicable To The
    Limit, The Debt Margin, And The Ratio, It May
    Present Ten Years

131
Jazz It Up
  • Some Governments Present The Total Assessed Value
    And Then Subtract The Exempt Values, If The Legal
    Debt Margin Is Based Upon Net Assessed Value
  • Some Governments Present The Total Amount Of
    Debt, And Then Subtract The Amount Of Debt Not
    Subject To The Debt Limitation
  • Some Governments Present The Years Horizontally
    And The Data Elements Vertically (It Looks Like
    Of Weird)

132
Examples
  • See Handout, Page 36

133
4 - Pledged Revenue Coverage Requirements
  • Gross Revenues (And, If Applicable, Specific
    Operating Expenses, To Produce Net Available
    Revenues),
  • Principal And Interest Requirements,
  • And A Coverage Ratio.
  • The Nature Of The Revenues Pledged For Each Type
    Of Debt Should Also Be Explained (For Example,
    Charges For Services, Room And Board Fees,
    Special Assessments, Incremental Property And
    Sales Taxes, And Lease Rental Payments).

134
Revenue Bond Coverage
  • This Table Indicates The Past Performance Of The
    Governments Enterprise Operations In Meeting
    Outstanding Revenue Bond Repayment Requirements
  • The Revenue Bond Contract Ordinarily Includes A
    Pledge By The Issuer To Establish And Maintain
    Rates And Charges At Levels At Least Sufficient
    To Meet Debt Service Coverage Requirements

135
Examples
  • See Handout, Page 37

136
Economic and Demographic Information
  • Session 5

137
Session No. 5 Objectives
  • Demographic And Economic Information Is Intended
  • (1) To Assist Users In Understanding The
    Socioeconomic Environment Within Which A
    Government Operates And
  • (2) To Provide Information That Facilitates
    Comparisons Of Financial Statement Information
    Over Time And Among Governments

138
Demographic and Economic Information
  • Relevant Demographic And Economic Indicators
  • Information About Principal Employers

139
1 - Demographic and Economic Indicators
Requirements
  • Population
  • Total Personal Income
  • Per Capita Personal Income
  • Unemployment Rate

140
Population
  • Present Ten Years Of Data
  • Indicate Clearly The Source Of The Data
  • If Any Population Is Estimated, State That Fact
    And Briefly Explain How It Was Estimated
  • Bureau of Census Data Often Is Used

141
Examples
  • See Handout, Page 38

142
Jazz It Up!
  • Add The Percentage Change From Year To Year
  • Compare The Reporting Governments Population With
    That Of The County, Metro Area, State And United
    States, Including Percentages
  • Present The Citys Population As A Percentage Of
    The Countys Population

143
Jazz It Up!
  • Add The Amount Of Square Miles Of The Reporting
    Government And The Average Population Per Square
    Mile
  • Report Components Of The Population Change (I.E.,
    Births, Deaths, Net Migration)
  • The Reporting Governments Population As Ranked
    Within The State (E.G., City As Population Is
    20th Within Cities Within The State

144
Jazz It Up!
  • Present By Age Ranges And By Gender With In
    Each Ranges (i.e., 12 Of The Populations Is Over
    65 Years Old)
  • Since The Above Information May Only Be Available
    Every 10th Year From The Census, Some Governments
    Present Five Or More Ten Year Increment Data
  • Racial Makeup Of Population

145
Jazz It Up!
  • Present By Martial Status (E.G., Single, Married
    Except Separated, Separated, Widowed, Divorced)
  • Add Seasonal Population (I.E., Resort Areas)
  • Note Unusual Non-resident Populations (E.G.,
    Gaming Communities)

146
Jazz It Up!
  • Projected Population Growth
  • County Incorporated Versus Unincorporated
  • Population By Income Levels Using Income Ranges
    (By Dollars And Percentages)
  • Population By Median Age

147
Jazz It Up!
  • Educational Level Of Population
  • Total School Enrollment
  • Percentage Of Population In School

148
School Districts
  • Total School Enrollment
  • Average Daily Enrollment And Average Daily
    Attendance With A Percentage
  • Peak Enrollment
  • School Dropout Rate
  • Cost Per Pupil

149
2 3 - Per Capita Personal Income and Total
Personal Income
  • Per Capita Total Personal Income Divided By
    Population
  • Mean and Median Income
  • Average Persons Per Family
  • Compare City with County, Metro-Area, State and
    the United States

150
2 3 - Per Capita Personal Income and Total
Personal Income
  • Present Total Personal Income By Source
    Highlighting Reliance On Particular Industry
    (e.g., Agriculture, Manufacturing, Services)
  • Effective Buying Income

151
4 Unemployment Rate
  • Consider Supplementing The Rate
  • Comparisons With County, Metro-area, State And
    United States
  • Add The Amount Of The Average Labor Force
  • Present Total Employment By Industry (See Next
    Section)
  • Present Work Force By Private, Government Or
    Self-employed

152
Principal Employers
  • For The Current Year And The Period Nine Years
    Prior, Governments Should Identify
  • The Principal Employers In Its Jurisdiction,
  • The Number Of Persons Each Employs,
  • The Percentage Of Total Employment That Each
    Represents.

153
Employer Information
  • The Schedule Should Include All Employerspublic
    And Private, For-profit And Not-for-profit

154
Examples
  • See Handout, Pages 39 - 45

155
Jazz It Up!
  • Add Type Of Business (e.g., Transportation,
    Automotive)
  • Add Type Of Product (e.g., Computer Terminals,
    Insurance, Steel Products)

156
Jazz It Up!
  • Classify Employers By Manufacturing Versus
    Services
  • Distributing The Number Of Employees By Gender

157
Jazz It Up!
  • The Number Of Firms By Major Category (E.G.,
    Manufacturing, Construction) With The Amount Of
    Square Feet Under Roof
  • Estimated Annual Payroll By Industry
  • Average Weekly Wage By Industry

158
Jazz It Up!
  • Industry By Income Tax Withheld
  • Diversity Of The Governments Employment
    Opportunities (May Not Coincide With Largest
    Employers
  • Add Narrative Of Major Employer

159
Operating Information
  • Session 6

160
Session No. 6 Objectives
  • Operating Information Is Intended To Provide
    Contextual Information About A Governments
    Operations And Resources To Assist Readers In
    Using Financial Statement Information To
    Understand And Assess A Governments Economic
    Condition.

161
Operating Information Requirements
  • Number Of Government Employees
  • Operating Indicators
  • Capital Asset Information

162
Information About Government Employees
  • Governments Should Present The Number Of Persons
    They Employ By Function, Program, Or Identifiable
    Activity, At Least At The Level Of Detail
    Required For Expense Reporting On The
    Government-wide Statement Of Activity

163
Government Employees
  • A Government Should Considered How The Number Of
    Government Employees Should Be Measured
  • For Instance, Should A Government Use Total
    Headcount Or Full-time Equivalent Employment?
    Should Part-time Employees Be Distinguished From
    Full-time?
  • The Statement Does Not Specify How To Measure The
    Number Of Employees

164
Examples
  • See Handout, Page 46

165
Operating and Capital Asset Indicator
  • GASBS 44 Does Not Specify What Indicators Should
    Be Reported
  • Although There Are Some Indicators, Such As The
    Examples Provided, That Are Commonly Used By
    Governments And Presented In Their Statistical
    Sections, That Decision Is A Matter Of
    Professional Judgment

166
Available Indicators Of Demand Or Level Of
Service
  • The Information Should Be Consistent With The
    Functions Presented On The Previous Table.
  • For Example, A Municipal Government Might Report
    Crime Rates, Number Of Arrests, And Number Of
    Responses To 911 Calls As Indicators For Its
    Police Activity.

167
Examples
  • See Handout, Page 47

168
Capital Asset Information
  • Present Available Indicators Of The Volume,
    Usage, Or Nature Of Their Capital Assets
  • For Example, Report Lane-miles Of Streets And
    Highways, Estimated Vehicle-miles Traveled On
    Highways, Miles Of Water Mains And Sewers, And
    Average Daily Water Consumption For Its Public
    Works Function.

169
Examples
  • See Handout, Page 48

170
School District Buildings
  • GASBS 44 Does Not Specify The Particular
    Information That School Districts Or Any Other
    Type Of Governmental Entity Should Present About
    The Volume, Usage, Or Nature Of Their Capital
    Assets
  • However, A Schedule Of Buildings By Maximum And
    Actual Enrollment Has Been Commonly Presented By
    School Districts For Many Years And Is Valued By
    Financial Report Users
  • In Addition To This Schedule, Or In Lieu Of It, A
    School District May Choose To Report Information
    About School Buildings And Administrative
    Facilities In The Aggregate, As Well As
    Information About Other Capital Assets, Such As
    School Buses, Athletic Facilities, And Equipment

171
Miscellaneous Information
  • Session 7

172
Miscellaneous
  • Governments May Provide Information In The
    Statistical Section In Addition To The
    Information Required By This Statement If It
    Meets The Objectives Established In Paragraph 6
  • Paragraph 6 Discusses the Five Required
    Disclosure Areas

173
Miscellaneous
  • Property Values And New Construction Data Are
    Intended To Indicate The Growth Or Shrinkage Of
    The Governments Property Tax Base
  • The Dollar Amount Of New Construction By Type
    (i.e., Commercial, Residential, Manufacturing,
    Agriculture)
  • Add The Dollar Amount Of Building Permits Issued
    By Type Of Permit

174
Miscellaneous
  • Divide The Building Permits By
  • New Construction
  • Alternations/Additions
  • Demolitions

175
Miscellaneous
  • Divide The Residential Building Permits By
  • Single Family Residential
  • Multi-family Residential
  • Mobile Homes

176
Miscellaneous
  • Provide Number Of Building Permits All Issued
    Over A Certain Dollar Amount
  • Add The Annual Increase In Family Units
  • Add Percentage Change Of Family Units

177
Miscellaneous
  • The Bank Deposit Information Provides Data For
    Analysis Of The Communitys Relative Wealth
  • Bank Deposits
  • Table Not Required
  • Banks And Savings And Loans
  • Deposits At A Point In Time
  • Average Monthly Bank Clearance
  • Average Monthly Bank Debits

178
Miscellaneous
  • Insurance Coverage
  • Surety Bond Coverage
  • Salaries
  • Ranges By Type Of Position
  • Elected Officials

179
Miscellaneous - Utilities
  • Miles Of Water Mains
  • Daily Consumption In Gallons
  • Plant Capacity In Gallons
  • Number Of Service Connections
  • Number Of Deep Wells
  • Number Of Fire Hydrants

180
WE ARE FINISHED!
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