ACG 4501– WRITING PROJECT AND PRESENTATION
You will be using the information in Ch 10 on ratios (specifically Illustration 10-4) to analyze the government-wide financial statements for a sample city for a 3 year period.
COURSE OBJECTIVES COVERED:1, 2, 6
This project is split into four (4) parts with one (1) part due each week of the course. Based on your readings, use of technology, research of literature, and other sources do the following:
o Part1-Write a 1-2 page analysis discussing the unique elements of governmental accounting in addition tohow ratios can be used to analyze government wide financial statements. Include at least 5 ratios as examples in your summary.
oPart 2- You will analyze the government-wide financial statements for the City ofArborlandfor a 3 year period. Use Exercise 10-20 on page 436 in your textbook as a guide. You will find the Statements of Net Position and Statements of Activities for FY 2015, 2016, and 2017 on pages 437-440. You will complete parts a & b of Exercise 10-20 using the Excel template found above. Parts a & b require you to calculate financial ratios for FY 2015, 2016, and 2017. Prepare your ratios in a presentable spreadsheet that will be included with your paper in week 3 and in your presentation in week 4.
oPart 3 – Provide an overall assessment of the city’s financial condition to the City Commissioner using the information provided, both financial and non-financial. Be sure to reference how GASB standards are reflected in the financial statements and what role GASB plays in the financial reporting process. Your paper should be 2-3 pages in length and follow APA guidelines.
oPart4- Present your project to the class for discussion.
The report should be should be 4-5 pages (not including cover page, abstract, or references)
Include the Excel spreadsheet(s) as exhibits in your paper
Include a minimum of 3 scholarly sources from the KU Library
oAll sources used are to be cited in APA format
oPlease use the writing center if needed
You will be using Excel to create the exhibit to your paper
You will be presenting your findings from the project to the class using the voice-over feature inPowerPointorYouTube. Please be sure the audio is clear and the file or link is accessible in the Week 4 Presentation discussion board.
You will be collaborating with other classmates on their presentations and answering any questions about your own presentation.
ASSIGNMENT DUE ON THUERDAYON EVERY WEEK:
Week 1: Submit your part 1 summary
Week 2: Submit your part 2 completed Excel template
Week 3: Submit your analysis
Week 4: Present and discuss your project
Running Head: THE UNIQUE ELEMENTS OF GOVERNMENT ACCOUNTING 1
THE UNIQUE ELEMENTS OF GOVERNMENT ACCOUNTING 4
The Unique Elements of Government Accounting
Even though government accounting largely happen like any other type of accounting, there are some elements that make it unique from other types of accounting such as for profit and not-for-profit organization. Government accounting conceptual framework is guided and developed by the government accounting standards board (GASB) (Caperchione, 2000). This not for profit organization establishes and improves financial and accounting standards for local and state government. The uniqueness of government accounting arises from the accounting objectives and the environment within which the government operates compared to the business entities. The primary purpose of government is to provide essential services for the well-being of all its citizens in accordance to government public policy goals. On the other hand, for profit business organization are focused on making profit and create of wealth and for this reason they only interact with those sections of the society who help them realized these goals of profit and wealth creation.
Some aspects of unique government accounting include the fact that government accounting serves a broader group of stakeholders such as taxpayers, citizens, elected officials, civil society groups as well as international interests especially investors. Secondly, government revenues are raised through involuntary tax collection unlike in business organizations where there is exchange of comparable value between two willing parties. Government accounting emphasizes on actual compliance with budget public policy. The life of government institutions is much longer than for profit organization and are not subject to bankruptcy and dissolution as it is the case with business entities. For the above reasons, government accounting is done uniquely from other types accounting (Chapter 4: Governmental Accounting, n.d.).
Just like in business organizations, ratios can be used for government financial statement analysis. Ratios can be used to compare various items of financial nature out of which relevant conclusions can be made about government financial performance. For instance, comparison can be done for various government agencies. Different government stakeholders use government financial information for different purposes. For simplicity purposes ratios have been put into categories. These categories include current ratio, debt equity ratio, and efficiency ratio. In addition, debt to capital ratio and debt ratio are also applicable in government accounting. Ratios are therefore effective financial statement analysis tools for government accounting. For instance, the current ratio shows whether short term government operational assets are able to meet the short term government obligations (Jan, n.d.).
Chapter 4: Governmental Accounting. (n.d.). Retrieved from https://nces.ed.gov/pubs2004/h2r2/ch_4.asp
Caperchione, E. (2000). Trends and Open Issues in Governmental Accounting Systems: Some Elements of Comparison.Comparative Issues in Local Government Accounting,69-85. doi:10.1007/978-1-4615-4581-1_5
Jan, O. (n.d.). Financial Ratio Analysis. Retrieved from https://accountingexplained.com/financial/ratios/ E 10-20
Part 2- Writing Project
10-20 a. Which of the financial performance measures in Illustration 10-4 can be calculated for the City of Arborland based on the information that is provided?
unrestricted net position
debt to assets ratio
capital asset condition
change in net position
10-20 b. Calculate at least 5 of those ratios identified in part a in the space provided below. Complete for FY 2015, 2016, and 2017. Remember to use formulas. 2017 2016 2015
Unrestricted net position unrestricted net position/Total Revenue
capital Asset condition accummulated depreciation/average cost of depreciable capital
debt to asset ratio total liabilities/total assets
current ratio current assets/current liabilities
quick ratio unrestricted cash and cash equivalents/current liabilities
Presentation of Ratios
Unrestricted Net Position
Choose Numerator Choose Denominator 0 Unrestricted Net Position
Unrestricted Net Position Total Revenue
2017 4,600 28,664 16 %
2016 2,931 23,587 1200% %
2015 3,013 21,437 14 %
Business Type Activities
2017 5,056 5,855 86 %
2016 6,628 4,603 57 %
2015 3,988 3,806 105 %
Capital Asset Condition
Choose Numerator Choose Denominator 0 Capital Asset Condition
Accumlated Depreciation Average Cost of Depreciable Capital Assets
2017 16,539 38,335 43 %
2016 17,532 38,383 46 %
2015 20,280 37,847 54 %
2017 4,281 16,695 26 %
2016 10,526 16,446 64 %
2015 8,302 15,101 55 %
Debt to Assets
Choose Numerator Choose Denominator Debt to Assets
Total Liabilities Total Assets
2017 19,672 37,868 52 %
2016 20,642 34,340 60 %
2015 20,873 30,599 68 %
2017 7,947 17,728 45 %
2016 8,102 15,073 54 %
2015 7,295 13,953 52 %
Choose Numerator Choose Denominator Current Ratio
Current Assets Current liabilities
2017 14,447 3,472 4.16 times
2016 10,583 2,442 4.33 times
2015 11,058 3,734 3.18 times
4,008 847 4.73 times
6,002 572 10.49 times
5,547 495 11.21 times
Choose Numerator Choose Denominator Quick Ratio
Quick Assets Current Liabilities
2017 14,162 3,472 4.08 times
2016 9,706 2,442 3.97 times
2015 10714 3,473 3.08 times
2017 3,936 847 4.65 times
2016 5,942 572 10.39 times
2015 5,487 595 11.08 times
Change In Net Position
&CUnrestricted Net Position How To Find Items In The GASB Codification Data Base
Step 1: Click on your chapter assignments
Step 2: Locate the web address, ID and Password for the FASB/GASB Codification database. Please note the user ID and password do change every year so please review these codes and keep them secure. These codes are only for Keiser students.
Step 3: Click on the GASB Codifications link once you have entered in the log in information
Step 4: Read the Welcome
Step 5: Look at an assigned problem or determine what you want to look up based on your research. For example, if you wanted to look up university accounting you would:
Type in the search box some key words and note as you type suggested items will appear then click Submit
Then you have to review the results and scroll for what you want to see
Once you have selected the main topic click to open it. Then it will go into more detail on that subject