HOMEWORK(AG)

Maryland Financial Analysis

Question No: 1

1) How many major enterprise funds does the entity maintain (if any)?

Enterprise fund are Government-Owned fund aims to provide goods and services in exchange of fee Maryland government has Total Six enterprises fund, out of which four are Major enterprise fund. Name of these funds are the employment loan program, Economic development program, the Maryland lottery and Gaming control agency and the Maryland transportation authority.

Question No: 2

(2) Are all the major enterprise funds operating at a profit (Operating Income)?

Operating income of all enterprise funds are positive except economic development loan program. Economic development loan program has negative operating income worth ($8,407,000), unemployment loan program has positive operating income worth $36,203,000, Maryland lottery and gaming fund had positive operating income worth $1,319,016,000, Maryland transportation authority has positive operating income worth $862,534,000.

Question No: 3

Does the entity maintain any internal service funds (major and/or nonmajor)?

Yes there are three major and four non major internal services fund (ISF). Major internal services fund includes Maryland higher education Activities, Maryland Prepaid College trust and Maryland Stadium Authority and Non Major includes Maryland Food center, Maryland environmental services, Maryland industrial development financing authority, and Maryland technology Development Corporation.

Question no: 4

Do the financial statements include a statement of cash flows for proprietary funds? If so, is the direct method or indirect method used?

Fiduciary Funds

Yes there is cash flow statement of proprietary fund at page no 37 of Maryland financials 2019 report. They used indirect method in cash flow statement.

Question no: 4 & 5

4. There are four types of fiduciary funds. Does this entity maintain all four types?

5. What are the purposes of the entity’s fiduciary funds?

Maryland offers all 4 types of Fiduciary fund. Fiduciary fund are used to provide resources for the wellbeing of other parties outside the government jurisdiction. Fiduciary fund include pension fund, employee benefit Trust fund, investment trust fund, and agency fund. Maryland pension and employee benefit trust fund are Retirement and pension fund system, the Maryland transit administration pension plan, the postretirement health benefit and the deferred compensation plan. The investment trust fund Consist on transaction assets, liabilities and net position of an external investment pool. Agency funds account for the Assets held for distribution by the state agent for the other organization.

Question No: 1

(1) What is the financial condition of the government you selected?

Condition of government is estimated by the income from all sources minus expenditure. Maryland government revenue in 2019 is $38,214,220 governments have generated additional 7% revenue comparatively last year 2018 it was $35,413,019. In term of expense Maryland expenditure in 2019 are 40,060,785 which were 38,413,090 in 2018. It reveals that Maryland generated 7 Percent additional revenue by just increase four percent in expenditure side we can say that government performance is quite better than 2018. Budge revenue Collection was expected in 2019 $17,762,928 and actual revenue collection is 18,186,189 which is 2% more than expected revenue. Expected budgetary expenditure in 2019 are $18,049,565 actual expenditure in 2019 was $17,686,333. Which indicate that government has reduce it 2% of its expenditure than estimated expenditures.

Reference

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