Finance Case study: Comprehensive Annual Financial Report (attached)

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Please see the attached CAFR for the City of Opa Locka, Florida. This is the document to be studied to answer the following questions:

I.                    Management Discussion and Analysis:  GASB 34 calls for governments to discuss their financial condition in the so-called MD&A. What does the MD&A reveal?  Are there any important revelations (doubtful) or is everything “cool”? Is there any commentary on how the recent changes in Florida’s property taxation might impact operations? Does management discuss employment or earnings patterns?

 

 

II.                 Are Enterprises Running on At Least a Breakeven Basis or Do You Note Any Deficits?  Remember, enterprise funds (including internal service funds) are generally believed to be business-like basis (break-even or better). A deficit may not be fatal but it suggests a red flag for further assessment.

 

This is a fairly simple and short assignment. Each answer only needs to be 2 pages (double-spaced) in length, (longer if you like) but please read through the case thoroughly and make your answers clear, complete and intellectual. Include calculations if necessary.

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