Homework 1-1 Essays

Submitted By tserio101
Words: 964
Pages: 4
Open Document
a. The letter of transmittal of the 2013 Comprehensive Annual Financial Report for the State of Texas (CAFR) includes a section under the heading “Profile of the Government,” which appears on the first page of the letter (page 3 of the CAFR). Although the term “primary government” is not used in this section, Susan Combs, comptroller, refers the reader to Note 1 (page 55), where the term primary government is contrasted with outside organizations. In the letter of transmittal (page 4), Combs states that the reporting entity includes any “other organizations” that, when excluded, would skew an interpretation of the financial statements. To define the primary government, Texas considers the component units, and applies the “benefit or burden relationship” principle in determining an organizations inclusion as part of the reporting entity. Based on the extent of a burden or benefit an organization contributes to the primary government, it will either be included in the basic financial statements, or be presented separately in the supplemental statements and in the notes (page 34). It names GASB criteria for defining the primary entity to which an outside organization is contrasted, using the descriptors “legal standing and financial accountability.” Further, the profile section of the letter of transmittal lists the functions of the primary government, which essentially defines what units comprise the core of the reporting entity: education, health and human services, public safety, etc. Any organization with a function that is not in this list is auxiliary, and analyzed in terms of its “ability to mislead” when excluded (Note 1, page 55). In the MD&A, on page 34, Combs states that there are 34 “discretely presented component units.” Analyzing the primary government versus outside organizations in determining the reporting entity is a relatively new process in Texas, as part of the adoption of GASB Statement No. 61 in 2013.

The letter goes on to discuss the financial condition of the state of Texas under the heading “Economic Outlook” on page 4. The outlook is one of growth that exceeds national standards. Real gross state product, personal income, population, and job growth are all expected to increase. More specific information regarding the net position and proposed changes to fiscal policy are discussed in the Management Discussion & Analysis (MD&A). The letter does not discuss the most significant changes in financial condition in the fiscal year, which is discussed in the MD&A. Increases in revenue are cited as resulting from increased tax revenue and a large amount of funds being reclassified as unrestricted. The letter does, however, allude to some major issues facing the government: a water shortage, aging workforce, student loan debt, providing for an “underserved population,” and a desperate need for infrastructure development. Many of these issues are referred to in the MD&A, which focuses on an analysis of financial performance (page 23). For example, in November 2014, Texans will vote on an allocation of “rainy day funds” to the State Highway Fund. As the population has grown, road maintenance has not kept up. Texas did not reach its target condition levels for interstate, non-interstate, and the Central Texas Turnpike System in 2013 (page 33).
In addition to the transmittal letter and MD&A, the introductory section of the 2013 Texas CAFR includes a GFOA Certificate of Achievement for Excellence in Financial Reporting, list of elected officials, and an organization chart of the executive, legislative, and judicial branches of the government.

b. (1) The state auditor’s audit report is included in the CAFR, and an additional report is issued separately by KPMG. The state auditor’s report states that it is management’s responsibility to prepare the financial statements in accordance with GAAP and to maintain internal controls. The state auditor issued an unqualified opinion, and
Show More

Related Documents: Homework 1-1 Essays

Essay on Homework 1

Gardner McNeil – gbm339 AST 309 – 47970 Homework 1 1. Newton pondered the universe in attempts to gain insight as to how and why the “uniform” distribution of galaxies existed. He theorized that it was seemingly uniform, however with deeper thinking concluded it to be composed of many nonlinear clusters. He uses an analogy of sharp needles to describe the formation of these clusters and to propose the improbability as well as impossibility of uniform galaxy distribution. He notes that to place a…

Words 743 - Pages 3

Homework 1 Essay

Homework 1 Chapter 1 1. What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant. a. Capital budgeting, which is the process of planning and managing a firm’s long term investment. In capital budgeting, financial managers try to identify investment opportunities that are worth more to the firm than they cost to acquire. An example would be for the financial managers to decide to establish a new location…

Words 1869 - Pages 8

Homework 1 Essay

Jyllian Gutierrez Victoria L. Curran Communications 120 Aug. 27, 2012 Homework #1 My two most significant strengths in interpersonal communication would be dealing with criticism in a positive way and my non-verbal expressions such as verbal and eye expression. I deal with criticism in a positive way be haring what others have to say and either trying to learn from it or if I don’t like it I just simply ignore it. People have told me that I can be very easy to read because of my eye expressions or…

Words 705 - Pages 3

Essay on homework 1

Effective listening skills Khristine Tamisin COMS 203 Speech Communications 4/19/15 Introduction Frank Tyger as cited Rogala and Rogala (2005, p.28) says “All wise men share one trait in common: the ability to listen.” However, very few people have ability to listen effectively and efficiently. According to Downs (2008), mere listening to advices and wise words add little value to anyone because people hear the statements and words rather than listen. Thus, it is critical to learn listening skills…

Words 492 - Pages 2

Homework 1 Essay

GRAPH 1 : Monetary Base (Source: St Louis Federal Reserve Bank FRED) Monetary Base – the sum of the Fed’s monetary liabilities (currency in circulation and reserves) and the U.S. Treasury’s monetary liabilities (Treasury currency in circulation, primarily coins). (Mishkin, 396) There has been a steady insignificant increase (practically absent) in the size of monetary base over the period of 2004-2008. However, during the mid of recession (indicated by the shaded area on the graph) there was…

Words 371 - Pages 2

Essay on homework 1

Ostensen, M. (2013). Counseling women with systemic lupus erythematosus who desire children. International Journal of Clinical Rheumatology, (8.1), 27. doi: GALE|A316990757 This article goes into great depth regarding the complications, and education of women who have Systemic Lupus. This study was one of academic nature, examining issues that arise from physical illness, and the social decisions a couple or individual must make when these issues may cause severe problems or even death…

Words 419 - Pages 2

Homework 1 Solutions Essay

sheriff (aas3563) – Homework 1 – spice – (54070) This print-out should have 20 questions. Multiple-choice questions may continue on the next column or page – find all choices before answering. 001 3. y = 1 4/x e 4 4. y = 1 x/4 e 4 5. y = 1 x/2 e 4 6. y = 1 x/8 e correct 2 10.0 points Determine A so that the curve y = 4x + 2 can be written in parametric form as x(t) = t − 1 , y(t) = At − 2 . 1. A = −4 Explanation: We have to eliminate the parameter t from the equations for x and y. Now…

Words 3361 - Pages 14

Unit 1 Homework Essay

American History Homework Unit 1 Chapters 1, 2, & 3 Terms, People and Events: Define or explain and tell the significance. Ch. 1 Kinship Division of labor Sahara Highway Nuclear family Reformation Caravel Columbian Exchange Treaty of Tordesillas Ch. 2 The Spanish Empire Conquistadores Hernando Cortes Joint-stock companies Jamestown Headright system Indentured servants Nathaniel Bacon John Winthrop Puritans Separatists Massachusetts Bay Colony City Upon a Hill Roger Williams Anne Hutchinson Ch. 3…

Words 620 - Pages 3

Homework 1 2 Essay

Economics 2001 Section 2 – Weimer Homework Assignment – Chapter 1 & 2 Due Date: Wednesday, September 10, 2014 at 11:59pm Instructions: Pick the best answer from the choices for each question. Mark your answer on page 3 and either email the document back or turn in a paper copy in class prior to the due date. 1. The opportunity cost of studying for an economics test is a. Negative because it may improve your grade. b. Zero because you knew when you registered for the class that studying would…

Words 481 - Pages 2

Woman Homework 1 Essay

Connor OToole Professor Malczanek Homework I 12/28/14 1. The ultimate objective of science is to understand the natural world we live in. Science is a way to investigate natural phenomena using observation, scientific method, measurement, and conducting experiments. A science is typically biology, chemistry, or physics. These are subjects that deal with objects, natural phenomena, or laws regarding nature. This investigation then leads to explanation and reason behind events. However, Science is…

Words 858 - Pages 4