HOMEWORK(AG)

Discussion Question week 2

This CAFR report is on the State of Maryland.

https://www.marylandtaxes.gov/forms/CAFR/cafr2019.pdf

Introductory/Financial Section

(1) Was the entity’s annual report for the previous year awarded a “certificate of achievement for excellence in financial reporting” by the GFOA?

1. Yes. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the State of Maryland for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2018.

(2) Which public accounting firm audited the financial statements? What was the auditor’s opinion on the financial statements?

2. SB & Company LLC audited the financial statements of the State of Maryland. The auditor’s opinion on the financial statements was that the statements were free from material misstatements, were prepared in accordance to the accounting principles accepted in the United States, and they presented a true and fair view of the State’s performance and position for the year ended June 30,2019.

(3) Did the auditor mention internal controls in their report?  Did the auditor provide an opinion on the entities internal controls?

The auditor did mention internal controls in their report. The auditor however did not give an opinion on the entity’s internal controls. Instead, they gave a disclaimer that they only considered the internal controls to help in developing appropriate audit procedures and not to give an opinion on them

(4) Was an organizational chart presented?  What person, group or entity was at the top of the chart? 

Yes. An organizational chart was provided. The voters of Maryland were at the top of the chart.

Governmental Funds

1. How many Governmental Funds are presented as major funds on the financial statements? Two Government Funds have been presented as major funds on the financial statements. They include the General Fund and the Special Revenue Fund.

(2) What is the total assets amount (in thousands) on the Governmental Funds balance sheet (include both major and non-major funds)?

1. The total assets amount on the Governmental Funds balance sheet is $ 8,759,967.

(3) For Governmental Funds, what activity accounted for the largest source of revenue (found on the “Statement of Revenues, Expenditures and Changes in Fund Balance”)?

For Government Funds, Federal Revenue accounted for the largest source of revenue at $ 12,378,980, 000

4.For Governmental Funds, what activity accounted for the largest source of expenditure (found on the “Statement of Revenues, Expenditures and Changes in Fund Balance”)?

For Government Funds, Health and Mental Hygiene accounted for the largest expenditure at $ 14, 295,022,000.

(5) Does your entity have any special revenue funds presented on the financial statements as a major Governmental Funds?

 Yes. The entity has special revenue funds presented on the financial statements as major governmental fund

(6) How many Governmental Funds in total (major and non major) does the city maintain? The State of Maryland maintains 5 government funds.

2. 7. Does the city have any permanent funds? Yes. The State maintains permanent funds. They include the state reserve fund and the current restricted fund.

3. (8) What was the Total Fund Balance on the Governmental Funds Balance Sheet (This is the sum of nonspendable, restricted, committed, assigned, and unassigned fund balances)? The total fund balance on the Governmental Funds Balance Sheet was $ 8,759,967,000.

Statistical Section

(1) Who was the largest employer of the entity (if this information is provided)?

The largest employer of the State of Maryland in 2019 was the Anne Arundel County Board of Education

(2) Please provide several additional interesting statistical data points from your CAFR.  For example, you can list the property tax rate, unemployment rate, per-capital income, etc.

The unemployment rate for the State of Maryland in 2019 was 3.9% and the per capital income was $ 62,914. The total population in 2019 was 6,042,718 and the school enrollment was 1,019,971.