Kiara Johnson

Chapter 2
• What are the three main sections of the report?
Introductory
Financial
Statistical

• Was the state awarded a Certificate of Achievement for Excellence in Financial Reporting?

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 for its
CAFR for the fiscal year ended June 30, 2015.

• Who audited the CAFR? Did the state receive an unqualified audit opinion?
• Roger A. Norman, JD, CPA, CFE, CFF

Chapter 3
• In which section of the CAFR are the budget-to-actual comparisons of the major funds?
• The budget-to-actual comparisons of the major funds are located in the financial section
under required supplementary information.
•
• Which accounting basis did the state follow to prepare its annual operating budget?
The City followed the budgetary basis to prepare its annual operating budget.

• Are actual amounts on a GAAP or a budgetary basis? Is there a reconciliation of differences

between the two?
The actual amounts are on a budgetary basis. The statements include a reconciliation of
differences between GAAP and budgetary amounts, with the largest reconciled items being
encumbrances for services and supplies ordered but not received, proceeds from the sale of
capital assets, and inter-fund transfers from other funds.

• Are reported variances based on the original budget or the year-end amended budget?
• The reported variances are based on the year-end amended budget.

Kiara Johnson

Chapter 2
The CAFR (Comprehensive Annual Financial Report) is a unique financial report used by cities
and local government to provide the public with the yearly financial record. The CAFR reports
how funds are spend and allocated throughout the year. This report has been prepared by the
Department of Finance and Administration (DFA) and must adhere to the Government Accounting
Standards Board (GASB). The CAFR is comprised of three main bodies which are the
introductory, financial and statistical sections.

Arkansas Legislative Audit FY2017 audit was performed by Roger A. Norman, JD, CPA,
CFE, CFF. Auditing standards generally accepted in the United States of America were used by the
auditors in conducting the engagement. 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 for its CAFR for the fiscal year ended June 30, 2015. This was the
eighteenth year that the State has achieved this prestigious award. In order to be awarded a
Certificate of Achievement, a government unit must publish an easily readable and efficiently
organized CAFR. The report must satisfy both accounting principles generally accepted in the
United States of America and applicable legal requirements. The Certificate of Achievement is
valid for a period of 1 year.

• What are the three main sections of the report?

Introductory
Financial
Statistical

• Was the state awarded a Certificate of Achievement for Excellence in Financial Reporting?
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 for its
CAFR for the fiscal year ended June 30, 2015. This was the eighteenth year that the State has
achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government unit must publish an easily readable and efficiently organized CAFR. The report
must satisfy both accounting principles generally accepted in the United States of America and
applicable legal requirements. The Certificate of Achievement is valid for a period of 1 year.

• Who audited the CAFR? Did the state receive an unqualified audit opinion?
• Roger A. Norman, JD, CPA, CFE, CFF

Chapter 3
• In which section of the CAFR are the budget-to-actual comparisons of the major funds?
• The budget-to-actual comparisons of the major funds are located in the financial section
under required supplementary information.
•
• Which accounting basis did the state follow to prepare its annual operating budget?
The City followed the budgetary basis to prepare its annual operating budget.

• Are actual amounts on a GAAP or a budgetary basis? Is there a reconciliation of differences

between the two?
The actual amounts are on a budgetary basis. The statements include a reconciliation of
differences between GAAP and budgetary amounts, with the largest reconciled items being
encumbrances for services and supplies ordered but not received, proceeds from the sale of
capital assets, and interfund transfers from other funds.

• Are reported variances based on the original budget or the year-end amended budget?
• The reported variances are based on the year-end amended budget.