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The Comprehensive Annual Financial Report . Legislative Audit Bureau February 2004. Sound Financial Management. Meets ongoing cash needs Accumulates reserves Limits debt to a prudent level Allows for intergenerational equity Reports finances in a timely and meaningful way.
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The Comprehensive Annual Financial Report Legislative Audit Bureau February 2004
Sound Financial Management • Meets ongoing cash needs • Accumulates reserves • Limits debt to a prudent level • Allows for intergenerational equity • Reports finances in a timely and meaningful way
Financial Audits • Attest to the fair presentation of the financial statements • Ensure assets are safeguarded • Assess the internal controls and compliance with laws • Ensure compliance with debt limits and other fiscal requirements
State Financial Reports • Annual Fiscal Reports (Budgetary Basis) • Comprehensive Annual Financial Report (GAAP)
Annual Fiscal Report • Is primarily a cash basis of accounting (checkbook accounting) • Is easy to understand • Is based on Wisconsin Statutes • Provides a scorecard on whether budget is balanced
Annual Fiscal Report • Is subject to manipulation by transfers between years • Provides an incomplete picture of finances
Comprehensive Annual Financial Report (CAFR) • Recognizes all current liabilities in the General Fund • Is consistent for all government entities and across years • Allows bond rating agencies to conduct financial analyses • Serves as an annual report for citizens
General Fund Balance June 30, 2003 Budgetary Basis $ (275,819,000) GAAP Basis (2,242,539,000) Difference $ 1,966,720,000
The Comprehensive Annual Financial Report Legislative Audit Bureau February 2004