GFOAZ Winter Conference Prescott, AZ Wednesday, February 16, 2011 “Preparing an Effective CAFR” Michelle R. Kirby City of Phoenix
G. F. O. A. Reporting Excellence Program The Certificate of Achievement – prestigious award, recognizing the highest standards of governmental report preparation Spirit of transparency and full disclosure Comprehensive – include all funds and component units, prepare in accordance with GAAP
CAFR Review Process Submit to GFOA within 6 months of fiscal year end Special Review Committee – professional service and exposure to practice Checklist for General Purpose Governments – extremely valuable tool Suggestions and Comments for Improvement
What Makes an Effective CAFR? Discussed with several local members of the GFOA Special Review Committee……here are their thoughts…….
Common Findings in Recent Reviews MD&A – budgetary discussion includes funds other than the General Fund MD&A – not enough “analysis” Pledged revenue disclosure missing or incomplete Major categories of restricted net assets s/be displayed on the face of the statements Various issues w/presentation of investments, ratings on investments, & disclosure of risk policy (review GASB Stmt. #40)
Critical Elements Numbers should articulate between various sections of the report Complete and thorough Notes MD&A – opportunity to explain what happened during the year, avoid technical language Use the GFOA Checklist and perform your own review….it really helps!
The Best CAFR’s ensure….. Readability and impact – font, page spacing, professional attention to detail, consistency Readability in PDF/Website viewing as well as hardcopy Section dividers, tabs, graphics to break up the text and numbers Going “above and beyond” to make it useful and interesting to the reader
Speaking of Transparency…. Have you heard of the term “PAFR”??? Easily understandable to the general public Financial info from data in the CAFR Narrative or graphic analysis for items of interest or concern
Preparing an Effective CAFR Thank you…..any questions???