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2e
Required Components of Annual Financial Report
Figure 1
Summary
Detail
A. Government-Wide Financial Statements
The government-wide statements report both short-term and long-term information about the
financial condition of the City as a whole, focusing on the government’s operational accountability.
The accounting methods of these statements reflect that of private sector companies in that all
governmental and business-type activities are consolidated into columns that add to a total for the
primary government. The statement of net position reports the City’s net position and includes all,
both current and non-current, assets and liabilities of the government. The difference between the
two is reported as net position. Over time, increases or decreases in the City’s net position are one
indicator of whether its financial health is improving or deteriorating. You will also need to consider
other non-financial factors, such as changes in the City’s property tax base, local economy and
service levels, to assess the overall health of the City. On the other hand, the statement of activities
reports how net position has changed and includes all of the current year’s revenues and expenses
regardless of when cash is received or paid.
The government-wide financial statements of the City are divided into three categories:
Governmental Activities -
Most of the City’s basic services are included here, such as police, fire,
transportation, environmental services, libraries, planning, neighborhood development, public
improvements, parks and recreation and general administration. Property taxes along with sales and
certain state-shared taxes and state and federal grants finance most of these activities.
Business-Type Activities -
The City charges fees to customers to help cover the costs of certain
services it provides. The City’s water and sewer system and other stormwater resources, parking
facilities, solid waste facilities and coliseum activities are included here.
Management’s
Discussion and
Analysis
Basic
Financial
Statements
Government-
Wide
Financial
Statements
Fund
Financial
Statements
Notes to
the
Financial
Statements