Paper 2

Running head: CAFR REPORT 1

CAFR REPORT 5

CAFR Report, Virginia

Student Name

School

Dated

I. INTRODUCTION

The county of Fairfax was established in 1742, and it is located in the north Commonwealth of Virginia, United States of America (CityHistory, 2020) The county is known for its dedicated people and the hardworking public towards their jobs and businesses. It has been observed that the county's government is in a struggle to devise better policies for the public. The financial crisis is minimized through proper planning and awareness among the public. The government is already familiar with the financial inputs and outputs and tries to manage the outcomes through better planning (Fairfax, 2007). Comment by Jeremy Yoo: Cite Comment by Jeremy Yoo: Still, Do not use Lottery source

The current report discusses the current financial conditions of Fairfax and the relevant issues. The comprehensive financial report was submitted on June 30th, 2021, and it has presented the financial outcomes of the county. The report is submitted annually, and it has been observed that the situation for the public remained suitable throughout the year. There are some points of improvements that are delivered to the government like the steps to improve the economic conditions and improve people's living. It is important to review the whole report and decide whether the county's overall condition has been improved (Schools, 2017).

There are different sections of the report, and the most important is the county's economic conditions. The economic conditions are observed throughout the year, and the report is published (Last paragraph, Page IX). The county's local economy was disturbed because of the coronavirus, which will be further discussed. The financial statements and their details have been discussed in the report. Comment by Jeremy Yoo: There’s no page number like IX

Fairfax Virginia is responsible for data accuracy, the fairness of figures and the complete details of the accounting and financial statements. The county must ensure that the complete report is delivered and adheres to honesty and integrity. CAFR has different sections, and the important one is the management personnel, where the committee with the different roles in CAFR has been discussed. The roles and responsibilities of different members have been explained.

CAFR’s committee of Fairfax has made the complete internal framework control where the processes are designed to prevent the losses and encourages the administration of the county to take the measures to meet the requirements of financial stability. It is made sure that the report is prepared with the complete alert to meet GAAP principles.

II. REVIEW OF MAIN SECTIONS

A comprehensive annual financial report has different goals and objectives. The report is published for the public and other regulatory authorities. The first purpose of the comprehensive financial report is to inform about the economic development of Fairfax County to allow the people to know how much they have to work hard to meet the goals of everyday life. The unemployment rate of Fairfax County in the year of coronavirus was 4.1 percent, and the county had to face other problems as well like economy recovery and small business promotion (First paragraph, page 11).

The general public is provided with detailed information on the financial statements, and the different analysis tools have been used. The government accounting standards, board regulation and GAAP (principles of regulation and consistency) are used to measure the analysis of the success or failure of the county's financial condition. Comment by Jeremy Yoo: Cite

There are different kinds of funds used to handle the different tasks and activities in the county. The ratio of increase and decrease in the individual funds has been shown how the people spent during the coronavirus and the situation of government funds. The private and public funds are important for the public and the management to maintain CAFR. The major portion of the report revolves around the coronavirus initiatives and testing. The report is important because it is observed that the people and their lifestyles changed during coronavirus, and it gave a new direction to the financial analysis. The coronavirus has just passed and the county was passing through the economic downfall. The report has discussed the main issues due to coronavirus and the steps to recover. Comment by Jeremy Yoo: Cite

CAFR consists of three important sections, and the first part is of introduction. The background and information about the coming sections have been discussed in the introduction section. The introduction section is important because it is found that the general public does not have proper knowledge of statistical and financial knowledge. The public still want to understand the report, so it is necessary to guide them. Comment by Jeremy Yoo: These paragraphs should be the main part of this section.

CAFR is based on the next two sections. The financial discussion is the second part where the general public is guided on how the finance was used and how the coronavirus impacted the county's economic situation, assets, and debts and what will be the future of the economy.

The last section is of the statistical analyses, where the graphical and tabular forms of data have been presented in detail. The net gain, profit and loss in assets have been explained to create awareness among the public regarding the economy.

2. REVIEW OF MAIN SECTIONS Comment by Jeremy Yoo: I would write like this in Part 2. Do not need Corona stuffs.

Introductory Section

It contains the letter of transmittal, which provides an overview of the County of Fairfax’s finance, economic prospects, and achievements. Also, included in this section is the certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association. It is the highest form of recognition in governmental financial reporting (cite) Page VIII

EXPLAIN MORE ABOUT THE INSTRUCTORY SECTION

Financial Section

The financial section includes the independent auditors’ report, management’s discussion and analysis, basic financial statements, including the accompanying notes, required supplementary information, and other supplementary information (CITE). Page 1

Management’s Discussion and Analysis

This subsection provides a narrative introduction to and overview and analysis of the basic financial statements. It included a description of the government-wide and fund financial statements, as well as an analysis of the county of Fairfax’s overall financial position and results of operations (CITE). Page 4

Basic Financial Statements

Basic financial Statements subsection…….. Page 20

Required Supplementary Information

This subsection…………. Page 152

Other Supplementary Information

This…………………………… Page 176

Statistical Section

The Statistical Section provides financial statement users with additional historical perspective, context, and detail to assist in using the information in the financial statement………………………. Five categories Page 282

Financial trends information

It is intended to assist users in understanding…. Page 284

Revenue Capacity Information

Page 294

Debt Capacity Information

Page 298

Demographic and Economic Information

Page 305

Operating Information

Page 308

III. Intended Audience

There are three primary users of CAFR report and they include the citizens, legislative and administration bodies, investors and creditors. They are important groups of users who have to read the report and understand it for the future use. It is stated that there are four uses of a government financial statements or CAFR are as follows. The first use is to compare the actual financial results that of legal budget, to know the financial condition of the government and the operational activities, to help to determine the compliance with the finance-based laws, rules and regulations and it also helps to know the effectiveness of government. Comment by Jeremy Yoo: Cite Comment by Jeremy Yoo: Cite

The citizens have the right to know the financial disclosures of the government that how it is operating, where the funds were spent and what are the future directions set by government. The citizens have to give the tax so they may know where their money was spent and how is the financial performance of government and it also helps them to know the ratio of effectiveness and efficiency of the government. The government is responsible to answer the people that how they are going to address the financial issues and what can be done to improve the future.

The legislative bodies have to make sure that the government is spending in limit and budget is appropriate for the different activities mentioned in report. CAFR further determines that whether the government obeys the certain rules and regulations of Fairfax county. The legislative bodies further ensure that the government is spending in the good direction. Comment by Jeremy Yoo: Cite

The investors and creditors have studied the rate of interest, rate of borrowing and credit rating of the state. Comment by Jeremy Yoo: Add more sentences

These all are the intended users of CAFR and the report ensures that the government is fulfilling its responsibilities. Comment by Jeremy Yoo: How? Explain and cite

IV. Thoughts on CAFR

The report is presented to its users through the financial outcomes and statistics. The whole report is presented in the form of financial data that how the county managed itself to balance the input and output. The disclosure of financial and accounting data is important, and the report has disclosed all the necessary information. The report on taxation, disclosures, unemployment and the challenges have been explained. There is no alternative to CAFR, and it is demonstrated to the public through the complete guidelines. The county needs to meet the standards of GASB and GAAP in accounting. Comment by Jeremy Yoo: Cite

The county needs to make sure that the public must be informed of the areas where the county has spent maximum and where the improvements are needed. If the proper information is not presented, the public will not know the details. The thoughts on the report are positive because it is the need of the people to disclose the information and let them know where the issues exist. Overall, it is a good initiative for the people to present the report.

CAFR cannot be matched with any other accounting or financial standards report, and the report is more than hundreds of pages. The report has discovered the hundreds of financial statements and the accounting principles. The report has discussed the financial statements. Irregularities, financial problems and the problems like unemployment, lack of education and the social issues to create the awareness among people. Comment by Jeremy Yoo: Cite

References

Authority, S. C. P. E. B. (2018). Comprehensive annual financial report. South Carolina State Documents Depository.

CityHistory. (2020). The City of Fairfax. Retrieved from https://www.fairfaxva.gov/government/historic-resources/city-history#

Schools, D. P. (2017). Comprehensive Annual Financial Report. Balance Sheet, 31, 32.

Virginia, W., & Lottery Commission. (2007). Comprehensive Annual Financial Report for the Fiscal Year ended June 30, 2007d. Location: http://www. WV lottery. com/pdf/wvl2007ar. pdf accessed Jan 3, 2008.