Fundamentals of Preparing a Comprehensive Annual Financial Report (CAFR) Course

Why Select this Training course?

A Comprehensive Annual Financial Report (CAFR) is a financial statement for state and local governments that is much more detailed and voluminous than a traditional annual financial report. Scores of basic and intricate financial reports, notes, narrative data, and supporting data are included in a CAFR for transparency in using taxpayers’ money to give a thorough accounting of all disbursements to ensure financial compliance.

What does a Comprehensive Annual Financial Report (CAFR) contain?

The Comprehensive Annual Financial Report (CAFR) is created by the accounting staff of a state, municipality, or other local government with its content complying with the financial reporting standards of the Governmental Accounting Standards Board (GASB) and audited by independent auditors to guarantee this compliance.

Why is a Comprehensive Annual Financial Report (CAFR) vital?

A Comprehensive Annual Financial Report presents a detailed picture of the reporting entity’s financial condition and how funds are spent and allocated throughout a fiscal year. Unlike an annual report that shows the introductory financial statement, the CAFR is a backward-looking document that provides more comprehensive data on the previous year with supplementary information offering added detail. Despite being a document that reminisces past governmental operations, it also forecasts and shows expectation, albeit subjectively, as this part of the document does not fall under the audition scope.

The Fundamentals of Preparing a Comprehensive Annual Financial Report (CAFR) Training Course by Rcademy is broken into easy-to-understand modules, aims to impart to its participants the knowledge that familiarises them with the intricacies of a CAFR, the format used in writing one, its sections, and its content.

Who Should Attend?

The Fundamentals of Preparing a Comprehensive Annual Financial Report (CAFR) Training Course by Rcademy is fit for individuals and professionals interested in learning and understanding a Comprehensive Annual Financial Report (CAFR). The following personnel should undertake this training course:

• Chief Financing Officer (CFO) or Finance Director who needs a better understanding of financial reporting to assist in the better design and implementation of financial strategies
• A controller who oversees the daily accounting operations of an organization
• Accounting professional who needs to learn more or even write a CAFR
• Students who seek more knowledge on CAFRs
• Any other personnel that want to be better equipped in reading and understanding CAFRs

What are the Course Objectives?

The Fundamentals of Preparing a Comprehensive Annual Financial Report (CAFR) Training Course by Rcademy aims to help participants achieve the following objectives:

• Recognize the three primary sections of a CAFR and the categories in each section
• Differentiate basic financial statements, required supplementary information, and other supplemental information within a CAFR
• Identify the appropriate elements to include in Management’s Discussion and Analysis (MD&A)
• Format and classify data in each of the basic financial statements
• Properly apply commonly misunderstood note disclosure requirements
• Prepare the required supplementary information
• Format combining and individual fund statements
• Prepare required statistical presentations
• Analyse municipality, local, and state government’s annual financial report

How will this Course be Presented?

The Rcademy course on the Fundamentals of a Comprehensive Annual Financial Report is participant-oriented – designed to improve participants’ knowledge and skills. This course is taught by experienced professionals and experts in the financial industry. The modules that make up this course are pooled together from extensive research on the subject matter.

This course will involve methodologies that will make it an interactive training program. Information will be provided with lecture notes, slides on the concept, audio, and video lectures, and hands-on activities. The course curriculum is revised often to ensure that the latest trends and best practices are kept up with. Feedback from participants is also encouraged to provide necessary improvements on the coursework and optimum participants’ satisfaction.

What are the Topics Covered in this Course?

Module 1: Overview of Comprehensive Annual Financial Reports (CAFRs)

• Definition of a CAFR
• The history behind the CAFR
• Importance of a CAFR
• Difference between a CAFR and a traditional financial report
• Difference between a CAFR and a budget
• Sections in a CAFR
• The replacement term for the CAFR and the reason behind it
• Where to access a CAFR

Module 2: Regulations and Rules for a CAFR

• The accounting standards of the Governmental Accounting Standards Board (GASB)
• Independent audition of a CAFR
  – Personnel and organizations in charge of the audition
  – Sections that are audited in a CAFR

Module 3: Introductory Section of a CAFR

• Overview and content of the introductory section
• The basic function of the introductory section
• The possible subjectivity of the introductory section
• Letter of transmittal
• Other appropriate sub-sections of the introductory section

Module 4: Financial Section of a CAFR

• Overview and content of the financial section
• The basic function of the financial section
• Independent auditor’s report
• Management’s Discussion and Analysis (MD&A)
  – Content of the MD&A
  – The function of the MD&A
  – Importance of the MD&A to the accessibility and transparency of the CFAR
• Other sub-sections in the financial section

Module 5: Basic Financial Statements

• Government-wide financial statement
  – Statement of net assets
  – Statement of activities
• Fund financial statements
  – Balance sheet
  – Governmental funds
  – Proprietary funds
  – Fiduciary funds
• Notes to financial statements

Module 6: Required Supplementary Information

• Objectives of required supplementary information
• Budgetary comparison schedule
• Infrastructure condition and maintenance data
• Public Employees’ Retirement System (PERS) actuarial valuation
• Notes to required supplementary information

Module 7: Combining and Individual Fund Statements and Schedules

• Combining balance sheets for non-major governmental funds
• Combining statements for general funds
• Combining statements for special revenue funds
• Combining statements for debt service funds
• Combining statements for capital projects funds
• Combining statements for permanent funds

Module 8: Statistical Section of a CAFR

• Overview and content of the statistical section
• The function of the statistical section
• Sub-sections of the statistical section
  – Financial trends information
  – Reverse capacity information
  – Debt capacity information
  – Demographic and economic information
  – Operating information

Module 9: The Reporting Entity

• Timeliness in the presentation of the CAFR
• Inference on the financial health of the reporting entity from analysis of the CAFR
• The future of the reporting entity