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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